To: EOU Board of Trustees Re: Proposed 2017-18 Tuition Increase Enclosed herein is information regarding EOU’s proposed tuition increase for 2017-18. The tuition proposal has been reviewed by both the Finance and Administration and the Academic and Student Affairs Committees. The Finance & Administration Committee recommended this proposal for approval at their April 5, 2017 meeting. Within this document are our guiding principles and considerations for tuition setting, our cost of attendance comparators, as well as the tuition proposal details. We are proposing an average 6% increase for the 2017-18 academic year. The proposed base tuition increases over 2016-17 rates are as follows:      

Undergraduate resident: 5.4% ($7.95/credit) Undergraduate nonresident: 6% ($23/credit) Graduate resident: 5.9% ($19.50/credit) Graduate nonresident: 5.9% ($24.50/credit) Undergraduate online: 6.4% ($14/credit) Graduate online: 6.2% ($25/credit)

1. Guiding Principles  Maintain “best value” position relative to other Oregon public universities. o The proposed increase for the 2017-18 year keeps EOU at a highly competitive level, and even with the increase, our tuition will remain among the lowest of most all public universities in Oregon, Washington, and Idaho. o For the average undergraduate resident student, the increase equates to approximately $120 per term. 

Build and maintain financial stability to allow for consistent improvement in mission fulfillment. o EOU has worked to repair and maintain our financial condition and our level of reserves is still being evaluated by the Higher Education Coordinating Committee. In addition, our Board policy states that 10% of revenue should be our goal level of reserves. Our proposed increase will require us to use approximately $1M in fund balance during FY18, but will still keep our fund balance level at approximately 13% at year-end. o Appropriate levels of reserves, (i.e. fund balance), allows EOU to adjust to unforeseen revenue declines and/or cost increases. Adequate and sustainable fund balance levels also will allow EOU to strategically invest in areas that need development and/or develop new programs and services that better serve students and solidify EOU’s niche



in the higher education industry. Primary areas where existing or new financial resources will be shifted or invested include the following areas:  Marketing  Enhanced recruitment initiatives  Safety and security improvements  Retention resource enhancements  Employee training  Engagement and workforce development  Career services o We currently face some significant unknowns, all of which may greatly impact our revenue and financial outlook. First, in terms of all enrollment, while there are multiple teams working on numerous initiatives on that front, there is still a chance that we could see an enrollment decline in the fall of 2017. Second, at this time, forecasts for state funding in the 2017-19 biennium are unknown. The Governor’s Recommended Budget (GRB) indicated flat funding to the Public University Support Fund, and due to the mechanisms of the PUSF model, this level of funding would actually equate to a decline in state funding to EOU of approximately $730,000. Lastly, current indications are that the State will face challenges over the next two to three biennia, which means we must be financially prepared for flat or even declining state funding over the next six years. Our tuition proposal attempts to address the most immediate and long-term unknowns in regards to revenue growth. o Personnel costs represent (78%) of total budget and the majority of salary and benefit cost escalation are driven by external factors outside of the direct control of EOU. To minimize impact, diligent cost management and efficiency improvements are required. This is being accomplished as is demonstrated by the cost savings projected for FY17 allowing for year-over-year cost increases to be contained at approximately 2.5%. This is a meaningful improvement over the cost growth trend of 4% experienced in the past and by other Oregon public institutions. New budgeting and cost management processes are being implemented and are expected to contribute to a more robust approach to resource allocation beyond FY17. o Also, key performance indicators have been or are being developed to provide decision support. The budgeting process, key performance indicators, and department action plans will all align with the strategic plan goals and objectives that are planned to be finalized by the end of FY17. Serve regional access needs by ensuring affordability to those most in need. o We are budgeting to continue to invest in fee remissions at the 11.25% mark. As enrollment and tuition revenue grows, the fee remission budget will grow as well, continuing to assist in providing access to those with greatest need. Lastly, we have budgeted an additional $500,000 in fee remissions to offset the loss of lottery funding allocation, as is proposed in the GRB.

2. Historical Overview of Oregon Higher Education Funding and Tuition As Oregon has continued to disinvest in higher education, institutions have raised tuition to backfill this disinvestment. The following two graphs depict the change in state allocation and tuition revenue in Oregon over time.

Higher Education Funding as a % of State Budget $25,000

18.0% 16.0% 14.0% 12.0% 10.0% 8.0% 6.0% 4.0% 2.0% 0.0%

Millions

$20,000 $15,000 $10,000 $5,000 $0

State of Oregon Total General Fund

Univ Total % Share

3. Cost of Attendance Comparators (2016-17) Undergraduate Resident Cost of Attendance 2016-17

Tuition EOU WOU OIT SOU PSU OSU UO

$ $ $ $ $ $ $

$25,000

Fees

6,570 6,990 7,543 6,840 7,020 8,715 8,910

$ $ $ $ $ $ $

Room & Board

1,434 1,710 1,560 1,518 1,317 1,651 1,852

$ $ $ $ $ $ $

9,642 9,798 9,602 12,756 12,831 11,037 11,583

Total $ $ $ $ $ $ $

17,646 18,498 18,705 21,114 21,168 21,403 22,345

2016-17 Undergraduate Resident Cost of Attendance

$20,000 $15,000 $10,000 $5,000 $EOU

WOU

OIT Tuition

SOU Fees

PSU

OSU

UO

Room & Board

Consultation with public universities in Oregon regarding tuition setting for 2017-18, indicates that our proposed tuition increase is lower that what most other public universities are proposing and/or have already approved for 2017-18.       

Eastern Oregon University Oregon Institute of Technology Southern Oregon University Western Oregon University Portland State University Oregon State University University of Oregon

6.0% (average) 8-10% 12.0% 10.0% 9.0% 4.0% 10.6% (1% reduction in tuition increase for every $20M above GRB)

4. Tuition & Fee Setting Process The tuition and fee setting process at EOU is highly collaborative and provides various points of input by students and campus constituents. For 2017-18 tuition setting, the conversations began in January and gave the background regarding state funding unknowns and budget drivers with the students of EOU, with the campus at our campus-wide “Chat Room,” and with the Budget & Planning Committee. Through February, March, and April the tuition proposal was/is presented to the following groups on the dates below, and all presentations were opportunities for feedback from campus constituents. January, 2017 1/13: Initial conversation with ASEOU 1/18: Initial conversation with Finance & Administration Committee 1/24: Initial conversation with Budget & Planning Committee 1/25: Initial conversation at EOU Chat Room February, 2017 2/6: Repeat initial conversation at ASEOU sponsored student-wide forum 2/27: Meet with ASEOU to review tuition proposal 2/28: Review tuition proposal with Executive Cabinet 2/28: Review tuition proposal at ASEOU sponsored student-wide forum March, 2017 3/1: Review tuition proposal with Finance & Administration Committee 3/14: Update Executive Cabinet on final tuition proposal 3/16: Review tuition proposal at ASEOU sponsored student-wide forum 3/21: Review tuition proposal with Budget & Planning Committee 3/28: Final tuition proposal sent to Finance & Administration committee members April, 2017 4/5: Final tuition proposal presented to F&A for recommendation to full Board 4/20: Final tuition proposal presented to Full Board 5. 2017-18 Tuition and Fee Proposal o o o o

Average 6% increase in all tuition categories Matriculation Fee increase to $350 (one-time fee for new students only) New Orientation Fee of $100 (one-time fee for new students only) All other mandatory remain flat

6. Undergraduate Resident, Tuition and Fees Proposal Cost Details 2017-18

CREDIT HOURS

TUITION PER CREDIT

ANNUAL TUITION

ANNUAL FEES

45 (15/TRM)

$153.95

$6,927.75

$1,434.00

ANNUAL TUITION & FEES $8,361.75

2017-18 INCREASE

2017-18 % INCREASE

$357.75

4.47%

7. Historical overview of Undergraduate On Campus Per Credit Rates

Undergraduate Resident Tuition Per Credit Hour 2012-13 through 2017-18 $165.00 $150.00 $135.00 $120.00 2012-13

2013-14

2014-15

2015-16

2016-17

2017-18

**Note: In 2013-14 and 2014-15 the state legislature “bought down” tuition increases by providing additional funding to hold tuition increases very low in 2013-14 and flat in 2014-15. 8. 2017-18 Proposed Per Credit Hour Rates 2016-17

2017-18

UNDERGRAD RESIDENT UNDERGRAD NON-RESIDENT GRAD RESIDENT GRAD NON-RESIDENT UNDERGRAD ONLINE GRAD ONLINE

$146.00 $382.50 $328.00 $413.50 $218.00 $405.00

$153.95 $405.50 $347.50 $438.00 $232.00 $430.00

WUE (150%)

$219.00

$231.00

EASTERN PROMISE – IN HS

$31.00

$31.00

EASTERN PROMISE-ONLINE OR ON CAMPUS

$60.00

$60.00

UNDERGRAD -BUSINESS DIFFERENTIAL

$10.50

$11.00

GRAD –BUSINESS DIFFERENTIAL

$13.50

$14.00