11

State University State University SystemSystem

Tuition and FeesTuition and Fees

22

Florida TuitionFlorida Tuition

Within proviso in the General Within proviso in the General Appropriations Act and law, each board Appropriations Act and law, each board of trustees shall set university tuition of trustees shall set university tuition and fees. and fees. (Section 1009.24, Florida Statutes)(Section 1009.24, Florida Statutes)

Tuition is based on a per credit hour Tuition is based on a per credit hour

charge, except for medical related charge, except for medical related tuition which is an annual fee. tuition which is an annual fee.

33

Primary Authority for Establishing Primary Authority for Establishing TuitionTuition

in other Statesin other States

LegislatureLegislature 44

State State Coordinating/Governing Coordinating/Governing AgencyAgency

1818

System BoardsSystem Boards 1212

Individual InstitutionsIndividual Institutions 1616

Source: State Tuition, Fees, and Financial Assistance Policies, 2002-03 State Higher Education Executive Officers (SHEEO)

44

Overall Tuition Philosophy Overall Tuition Philosophy of the States of the States

PhilosophyPhilosophy 2002-032002-03 1996-1996-9797

Tuition should be as low as possibleTuition should be as low as possible 30%30% 28%28%

Tuition should be moderateTuition should be moderate 13%13% 28%28%

Tuition should be highTuition should be high 0%0% 4%4%

Tuition policy is guided by institutional-Tuition policy is guided by institutional-level philosophy or budgetary needs/no level philosophy or budgetary needs/no statewide tuition philosophy existsstatewide tuition philosophy exists

37%37% 23%23%

OtherOther 20%20% 17%17%

Source: State Tuition, Fees, and Financial Assistance Policies, 2002-03 (SHEEO)

55

State University System 2002-03 TOTAL BUDGET, SOURCE OF FUNDS

$5.952 BILLION TOTAL BUDGET

*Includes Special Unit Student Fee T.F.

Source: 2002-2003 Operating Budgets

State Funded$1,921 Mil.

Contracts& Grants

$1,224 Mil.

Auxiliary T.F.$661 Mil.

Student Fees*$614 Mil.

Faculty PracticePlans

$323 Mil.Others

$202 Mil.Fin. Aid

Fee$1,008 Mil.

32.3%

20.6%

11.1%

10.3%

5.4%

3.4%16.9%

General Revenue$1,748 Mil.

Lottery$110 Mil.

Other$63 Mil.

91.0%

5.7%3.3%

P&A: BOOK967L.PRS 8/27/03

State Appropriations Broken Out

66

Florida Tuition IncreasesFlorida Tuition Increases

2003-20042003-2004 8.5% across the board8.5% across the board Up to an additional 6.5% discretionary increase for all levels Up to an additional 6.5% discretionary increase for all levels

except in-state Undergraduateexcept in-state Undergraduate 4 universities used the full 6.5% discretionary authority4 universities used the full 6.5% discretionary authority 1 university did not use any of the discretionary authority1 university did not use any of the discretionary authority

2002-20032002-2003 5% across the board for in-state students5% across the board for in-state students Up to an additional 5% discretionary increase for in-state Up to an additional 5% discretionary increase for in-state

graduate studentsgraduate students 10% across the board for out-of-state students10% across the board for out-of-state students Up to an additional 10% discretionary increase for all out-of-Up to an additional 10% discretionary increase for all out-of-

state studentsstate students

77

2002-2003 Tuition Increases 2002-2003 Tuition Increases in other Statesin other States

18 states increased tuition and fees 18 states increased tuition and fees 10 percent or more as compared to 10 percent or more as compared to nine states in 2001-02nine states in 2001-02

Two states increased tuition and fees Two states increased tuition and fees more than 20 percent and one state more than 20 percent and one state increased tuition and fees 3 percent increased tuition and fees 3 percent or lessor less

Source: Washington State Tuition and Fee Report, January 2003. Washington Higher Education Coordinating Board

88

Comprehensive Institutions Resident Undergraduate Comprehensive Institutions Resident Undergraduate Tuition Increases in 2002-03Tuition Increases in 2002-03

Source: Washington State Tuition and Fee Report, January 2003. Washington Higher Education Coordinating Board

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

MA

MO IA TX

NC

OH

MT

SC

ND

NJ

IN

WA

ID MN

PA

KY

WV

MS

National A

vera

ge

NE

OK IL VA

CT

NM MI

MD

NH

UT

WI

SD

CO

TN

AR

KS

AL

RI

GA

CA

FL

VT

ME

AZ

LA

OR

NV

NY

•Florida 5% Increase

•18 States Greater than 10%

5%

10%

99

Resident UndergraduateResident Undergraduate Tuition and Required Fees (State Averages) Tuition and Required Fees (State Averages) Comprehensive Colleges and Universities Comprehensive Colleges and Universities

Percentage Increase from 1998-99 to 2002-2003 Percentage Increase from 1998-99 to 2002-2003

27%

Source: Washington State Tuition and Fee Report, January 2003. Washington Higher Education Coordinating Board

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

NC

IA MO

TN

AR

ID OH

NJ

MT

KY

NE

MI

MN

SD

TX IL MS

AL

WA

NM IN SC

OK

PA

Nati

on

al

Av

era

ge

FL

ND

NH

WV

WI

CT

UT

MA

MD

GA

CO

KS

AZ

RI

LA

VT

ME

NV

OR

CA

NY

VA

27.3%

Florida’s 4 Year Increase – 27.3%

1010

Nonresident UndergraduateNonresident Undergraduate Tuition and Required Fees (State Tuition and Required Fees (State Averages) Averages)

Comprehensive Colleges and State UniversitiesComprehensive Colleges and State Universities Percentage Increase from 1998-99 to 2002-2003Percentage Increase from 1998-99 to 2002-2003

Source: Washington State Tuition and Fee Report, January 2003. Washington Higher Education Coordinating Board

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

WI

MS

TN

MO

AR IA MT

NE NJ

FL

NM

OH MI

KY

AL

NC IN NV

AZ

SC

OK

WV

Nat

iona

l Ave

rage

MD

MA

WA

UT

SD

ND

LA

GA RI

CO

OR

PA

KS

VT

CT

ME

NH

VA ID

MN

CA

TX IL NY

37.20%

25.50%

Florida’s 4 Year Increase 37.2%

1111

Resident GraduateResident Graduate Tuition and Required Fees (State Tuition and Required Fees (State Averages) Comprehensive Colleges and State Averages) Comprehensive Colleges and State

Universities Percentage Universities Percentage Increase from 1998-99 to 2002-2003Increase from 1998-99 to 2002-2003

Source: Washington State Tuition and Fee Report, January 2003. Washington Higher Education Coordinating Board

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

70.00%

MO

AR

NC

PA IA ND

OH

NE

TN ID AL

KY

MI

MS

MO

WI

MD

MN

TX

FL

IN

NM

SD

Natio

nal A

vera

ge

WV

SC

OK

GA IL

WA

UT

NJ

CT

OR

NH

MA

KS

AZ

VA

LA

VT RI

NV

CO

CA

NY

28.70%31%

Florida’s 4 Year Increase – 31%

1212

Nonresident GraduateNonresident Graduate Tuition and Required Fees (State Tuition and Required Fees (State Averages) Comprehensive Colleges and State Universities Averages) Comprehensive Colleges and State Universities Percentage Increase from 1998-99 to Percentage Increase from 1998-99 to

2002-20032002-2003

Source: Washington State Tuition and Fee Report, January 2003. Washington Higher Education Coordinating Board

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

70.00%

MT

AR

MS

NE

TN IA FL

WI

AL

OH

PA

NM

MD

UT

MO

ND

KY

NV

NC

IN AZ

MI

SC

OK

WV

Nati

onal

Avera

ge

NJ

GA

WA

SD

OR

RI

KS

MN

MA

VA

CO

VT

CT

NH

ID LA

CA

TX IL NV

NY

37.80%

26.70%

Florida’s 4 Year Increase – 37.8%

1313

Resident UndergraduateResident Undergraduate Tuition and Required Fees, Public Tuition and Required Fees, Public Universities Average Annual Percentage Increase, 1972-73 to Universities Average Annual Percentage Increase, 1972-73 to

2002-032002-03

Source: Washington Higher Education Coordinating Board

0.00%

2.00%

4.00%

6.00%

8.00%

10.00%

12.00%

TX HI

MA

DE

AR

WV

LA

NJ

MI

MO

TN

ME

KY

MN IL PA

CT

NC

AK

MD

MT

SC

ID

National A

vera

ge

VT IN OR

WA

ND

WI

NH

SD

NE RI

VA

MS

WY

OH

OK

KS

AL

GA

NM IA UT

CA

AZ

CO

NY

NV

FL

7.40%

5.16%

Florida’s 30 Year Annual Increase – 5.16%

1414

Resident UndergraduateResident Undergraduate Tuition and Required Tuition and Required Fees Fees

SUS vs. National AverageSUS vs. National Average

1972-731973-74

1974-751975-76

1976-771977-78

1978-791979-80

1980-811981-82

1982-831983-84

1984-851985-86

1986-871987-88

1988-891989-90

1990-911991-92

1992-931993-94

1994-951995-96

1996-971997-98

1998-991999-00

2000-012001-02

2002-03

$500

$750

$1,000

$1,250

$1,500

$1,750

$2,000

$2,250

$2,500

$2,750

$3,000

$3,250

$3,500

$3,750

$4,000

$4,250

$4,500

$4,750

$5,000

National Average

SUS

Source: Washington Higher Education Coordinating Board Surveys

1515

Non-Resident Undergraduate Non-Resident Undergraduate Tuition and Required Tuition and Required Fees Fees

SUS vs. National AverageSUS vs. National Average

1977-781978-79

1979-801980-81

1981-821982-83

1983-841984-85

1985-861986-87

1987-881988-89

1989-901990-91

1991-921992-93

1993-941994-95

1995-961996-97

1997-981998-99

1999-002000-01

2001-022002-03

$1,500$2,000$2,500$3,000$3,500$4,000$4,500$5,000$5,500$6,000$6,500$7,000$7,500$8,000$8,500$9,000$9,500

$10,000$10,500$11,000$11,500$12,000$12,500$13,000$13,500

Source: Washington Higher Education Coordinating Board Surveys

National Average

SUS

1616

1978-791979-80

1980-811981-82

1982-831983-84

1984-851985-86

1986-871987-88

1988-891989-90

1990-911991-92

1992-931993-94

1994-951995-96

1996-971997-98

1998-991999-00

2000-012001-02

2002-03

$500$750

$1,000

$1,250$1,500

$1,750$2,000

$2,250$2,500$2,750$3,000

$3,250$3,500$3,750

$4,000$4,250

$4,500$4,750$5,000

$5,250

Resident Graduate Resident Graduate Tuition and Required Fees Tuition and Required Fees SUS vs. National AverageSUS vs. National Average

Source: Washington Higher Education Coordinating Board Surveys

National Average

SUS

1717

Non-Resident Graduate Non-Resident Graduate Tuition and Required Tuition and Required Fees Fees

SUS vs. National AverageSUS vs. National Average

1978-791979-80

1980-811981-82

1982-831983-84

1984-851985-86

1986-871987-88

1988-891989-90

1990-911991-92

1992-931993-94

1994-951995-96

1996-971997-98

1998-991999-00

2000-012001-02

2002-03

$1,500$2,000$2,500$3,000$3,500$4,000$4,500$5,000$5,500$6,000$6,500$7,000$7,500$8,000$8,500$9,000$9,500

$10,000$10,500$11,000$11,500$12,000$12,500$13,000$13,500

Source: Washington Higher Education Coordinating Board Surveys

National Average

SUS

1818

Block/Flat TuitionBlock/Flat TuitionIn twenty-nine states, tuition is set at a flat rate for full time students (State Higher In twenty-nine states, tuition is set at a flat rate for full time students (State Higher Education Executive Officers report dated June 2003)Education Executive Officers report dated June 2003)

Examples of InstitutionsExamples of InstitutionsTexas Higher Education System implemented block fees for 12-18 credit hoursTexas Higher Education System implemented block fees for 12-18 credit hoursIndiana-Bloomington implemented block fees for students taking 12 to 17 hoursIndiana-Bloomington implemented block fees for students taking 12 to 17 hoursOklahoma State University proposed to implement block fees for students taking Oklahoma State University proposed to implement block fees for students taking 12 hours or more, however it was not approved12 hours or more, however it was not approved

AdvantagesAdvantagesIt may increase the number of students that complete their degrees in four years It may increase the number of students that complete their degrees in four years because they can take additional courses for the same amount of tuition.because they can take additional courses for the same amount of tuition.It may generate additional revenue, however that is dependent on how the tuition It may generate additional revenue, however that is dependent on how the tuition increase is implemented.increase is implemented.

DisadvantagesDisadvantagesIt may decrease the number of students that complete their degrees in four years It may decrease the number of students that complete their degrees in four years because they may take less courses based on the block tuition.because they may take less courses based on the block tuition.If the required course offerings are not increased; the necessary courses will not If the required course offerings are not increased; the necessary courses will not be available. Therefore, it may not shorten the time to obtain a degree. be available. Therefore, it may not shorten the time to obtain a degree.

1919

Pros

Cons

Provides additional fiscal resources to institutions Increases incentive to enroll students and expand access Increases student’s incentive to complete programs and use state-subsidized institutions efficiently

Flexibility of Tuition and Fees

Allow tuition and fee flexibility to move to the national average of public institutions*

Increases costs for many students Increases demand for need-based financial aid Requires changes to Bright Futures Jeopardizes current configuration of Florida Prepaid College Program

Allow institutions flexibility to propose tuition and fee increases up to the national average of their peers. Proposals for increases should be tied to mission of the institution and recognize state goals for improving quality and expanding access.

To implement this recommendation, institutions should submit a tuition and fees plan for approval by FBOE. Plans need not be limited to across-the-board increases.Allow different tuition levels for different programsUse tuition rate incentives to encourage students to accelerate their progressCharge more for excess hours beyond graduation requirementsRequire institutions to fund need-based financial aid programsOffer incentives for 2+2 and off-peak enrollment to make better use of staff and facilitiesOffer block tuition ratesRefund out-of-state tuition differentials for out-of-state students who obtain employment and remain in Florida after graduation

Present Situation: Only two other states have lower university tuition than Florida, when comparing the amount of tuition and fees charged to resident undergraduates at public universities. For community colleges, Florida ranks 30 th among the states in the amount of fees charged to residents for college credit programs.

Recommendation:Recommendation:

*See attached Minority Report

Source: Higher Education Funding Advisory Council

2020

Types of FeesTypes of Fees

Statutory FeesStatutory Fees

Local FeesLocal Fees

Other Authorized FeesOther Authorized Fees

2121

Statutory FeesStatutory Fees

Financial Aid Fee – Not to exceed 5 percent Financial Aid Fee – Not to exceed 5 percent of tuition – SUS average is $3.17 per credit of tuition – SUS average is $3.17 per credit hour for undergraduate residents hour for undergraduate residents

Building Fee – $2.32 per credit hourBuilding Fee – $2.32 per credit hour

Capital Improvement Fee - $2.44 per credit Capital Improvement Fee - $2.44 per credit hourhour

2222

Local FeesLocal Fees

These fees are also included in Section 1009.24, These fees are also included in Section 1009.24, Florida Statutes, and the increase in fees is Florida Statutes, and the increase in fees is determined by a fee committee, at least one-half determined by a fee committee, at least one-half of whom are students appointed by the student of whom are students appointed by the student body president. Final approval rests with the body president. Final approval rests with the university boards of trustees.university boards of trustees.

Activity and Service Fee – SUS average is $9.19Activity and Service Fee – SUS average is $9.19 Athletic Fee – SUS average is $8.07Athletic Fee – SUS average is $8.07 Health Fee – SUS average is $5.33Health Fee – SUS average is $5.33

These fees are capped at 40 percent of tuition. These fees are capped at 40 percent of tuition.

2323

Other Authorized Fees*Other Authorized Fees*

Non-refundable application fee – not to exceed $30Non-refundable application fee – not to exceed $30 Orientation fee – not to exceed $35Orientation fee – not to exceed $35 Late-payment fee – not less than $50 and not more than $100Late-payment fee – not less than $50 and not more than $100 Materials and supplies feesMaterials and supplies fees Library fees and finesLibrary fees and fines Duplicating, photocopying, binding, and copyright services feesDuplicating, photocopying, binding, and copyright services fees Traffic and parking finesTraffic and parking fines Transcripts and diploma replacement fees– not to exceed $10Transcripts and diploma replacement fees– not to exceed $10 Non-refundable admissions deposit fee – not to exceed $200Non-refundable admissions deposit fee – not to exceed $200 Transportation Access FeeTransportation Access Fee

* This list is not all-inclusive. See Section 1009.24, Florida Statutes* This list is not all-inclusive. See Section 1009.24, Florida Statutes

2424

Average 2003-04 Undergraduate Average 2003-04 Undergraduate Resident Charges Resident Charges

Tuition/FeesTuition/Fees Per Credit Per Credit HourHour

Credit Credit hours hours

CostCost

TuitionTuition $63.41$63.41 3030 $1,902$1,902

Financial Aid FeeFinancial Aid Fee $ 3.17$ 3.17 3030 $ 95$ 95

Building FeeBuilding Fee $ 2.32$ 2.32 3030 $ 70$ 70

Capital Capital Improvement FeeImprovement Fee

$2.44$2.44 3030 $ 73$ 73

A&S FeeA&S Fee $9.19$9.19 3030 $ 276$ 276

Athletic FeeAthletic Fee $8.07$8.07 3030 $ 242$ 242

Health FeeHealth Fee $5.33$5.33 3030 $ 160$ 160

TotalTotal $93.93$93.93 3030 $2,818$2,818

2525

Where do we go from here?Where do we go from here? Tuition Decision

Legislature Institutional Decision Board of Governors Combination

Financial Impact Students State Bright Futures Florida PrePaid Program

Tuition Options Per Credit Hour Block/Flat Fee Differential based on discipline Differential based on mode of delivery Differential based on location, day of week, time of day Differential based on lower, upper level, or doctoral