FY10 Statutory Tuition Revenue Projections• Different Rates for UG and GR; Resident and

Non-residentUndergraduate, Resident $50 / Semester Credit HourGraduate, Resident $100 / Semester Credit HourNon-Resident Rate established by THECB

average NR tuition of the 5 most populous states

FY08 Rate: UG $328 / SCH GR $656 / SCH FY09 Rate: UG $331 / SCH GR $662 / SCH FY10 Rate: UG $327 / SCH GR $654 / SCH

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Texas Public Education Grants• Mandatory financial aid ‘set-aside’ for Texas

Public Education Grants (TPEG) per Ed Code 56.033(a)(2)– Funds for TPEG are netted from statutory tuition

revenue:• 15% of Resident tuition • 3% of Non Resident tuition(can be reset each biennium by the legislature)

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FY10 Statutory Tuition Revenue Projections• We are liable for the actual TPEG requirement by

Ed Code based on census data not budget data: – Budgeted TPEG is adjusted for the:

• Estimated Change in mix of ‘paying’ students:– UG/GR– Res/NR

– Other legislative changes (e.g. set-aside rate)

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FY10 Statutory Tuition Revenue Projections• Difficult to know with precision what future enrollment

mix will be:– How many non-residents paying the out of state tuition rate?

• Non-resident & international students appointed to a 20 hour per week TA/GA position pay in-state tuition rates

• Graduate student taking undergraduate level courses, pay UG tuition rate

– Over estimating non-resident tuition can have substantial financial impacts; for example, a shift of

• 10 FTE UG NR students (30 SCH each) = $ 98,100 annualized (next year’s rate)• 10 FTE GR NR students (18 SCH each) = $117,720 annualized (next year’s rate)

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Last Year at this time:• We were expecting a loss of student head

count in FY09 due to admissions criteria– 800 students

• FY09 tuition budgets were conservatively based on – 648,648 SCH– No change in mix of students

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Projection is 0.2% SCH less than projected FY09, with a 5.5% decline for UG NR SCH (20 FTE UG) and 7% decline for GR NR SCH (10 FTE GR).

FY10 Designated Tuition Revenue Projections• Normally, easier to compute – Board approved rate

times SCH– Summer is the trailing semester.– Predicting next year’s total SCH / Summer trailing semester

• Legislature may change the FY10 Board approved rate• Rate Projection Scenarios:

– No rate increase– Board Approved Rate– 5% Designated Tuition Rate Cap– 5% Total Academic Cost Cap

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FY10 Designated Tuition Revenue Projections

• FY10 SCH Basis: <0.2%> of projected FY09 or 670,450 SCH– 3.4% increase over FY09 budgeted SCH

• Even the flat rate scenario will generate additional base budget given prior year conservative projections

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Scenario 1: Designated Tuition Rate is flat.

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Scenario 2: FY10 DT Rate is capped at 5%

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Scenario 3: FY10 Total Academic Costs Capped at 5% but Designated Tuition Rate is Maximized

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Scenario 4: Board of Regents’ Approved FY10 Designated Tuition Rate