2014-15 Tuition & Fees

1. 2014-15 Tuition & Fees Presented to: Board of Trustees December 2, 2013

2. Table of Contents

3. Overview of BOG Guidance

4. BOG Guidance Year 4 of 2nd 4-Year Plan • Maximum Allowable Increases - 6.5% (undergraduate resident students) • Tuition – reduced by 1% for every 1% increase in appropriations / FTE above the historic 6% rate. • Fees – applies only to general fees (no debt service) • Combined tuition & fee rates for resident undergraduates shall remain within the bottom quarter of each campus’ public peers, as approved by Board of Governors. • In addition, combined rates for non-resident undergraduate students should be market-driven...

5. BOG Guidance (cont.) Student Involvement • Collaboration • Committee co-chaired by Provost and Student Body President • UNCW: Provost & SGA Vice President • Inclusiveness • Student representation should be diverse, comprised of students representing various populations on the campus. • UNCW: SGA, GSA, Non-traditional students • Transparency • Establish multiple communications methods to inform students (social media, websites, facebook, etc.) • UNCW: Websites (Budget Office, SGA), Facebook, Twitter • Timeliness • Start appointing committees, scheduling forums, using social media outlets, etc. …involve students...beginning October 1 through December 1st of each academic year. • UNCW: Two student forums (10/15 and 10/17)

6. BOG Guidance (cont.)Cost of Student Textbooks • BOG Guidance directive: • “…if institutions do not show satisfactory effort towards lowering the cost of textbooks, they will not be allowed to increase tuition and fee rates.” • BOG has set three (3) criteria dealing w/ textbooks: • Calculations of average textbooks costs for undergraduate students • A progress report on the implementation of guaranteed buyback or rental program • Calculations of on-time adoptions rate by faculty

7. FY 2014-15Campus-Initiated Tuition Increases

8. Committee Considerations • Undergraduate Students: • Residents – President Ross has indicated that he does not intend to recommend any campus-initiated tuition increases • Non-Residents – Through SL 2013-360 legislature approved, for UNCW, a 12.3% tuition increase in FY 2014-15 ($1,988.01 increase) • Increase in revenue offset by loss of appropriations (~ $3.5M) • Graduate Students: • Analysis shows that graduate student enrollment still highly inelastic…i.e., demand decreases as tuition increases • Due to the small number of graduate students any nominal rate increase generates very few dollars • Requirements: • The campus did not submit any requests for new tuition revenue • The committee discussed but elected not to propose any additional requests • Unified Budget Process – programmatic budget needs won’t be developed until next spring • Committee recommendations: request no Campus Initiated Tuition Increases for FY 2014-15

9. Expected FY 2014-15 Tuition Rates FY 13-14 RateExpected Increase FY 14-15 Rates% Increase • Undergraduate Students • In-State $4,026.00 $0.00 $4,026.00 0.0% • Out-State $16,162.72 $1,988.00 $18,150.72 12.3% • Graduate Students • In-State $4,162.74 $0.00 $4,162.74 0.0% • Out-State $16,098.18 $0.00 $16,098.18 0.0% • MBA Students • In-State $4,972.28 $0.00 $4,972.28 0.0% • Out-State $16,640.26 $0.00 $16,640.26 0.0% • MSA Students • In-State $4,744.58$0.00$4,744.58 0.0% • Out-State $16,640.26$0.00$16,640.26 0.0%

10. FY 2014-15 U/G Non-Residents • S.L.2013-360 increases FY 14-15 tuition for undergraduate non-resident students, as follows: • 12.3% increase: • NCA&T, UNC-CH, UNCW and UNC-SA • 6.0% increase: • ASU, ECU, ECSU, FSU, NCCU, UNCA, UNCG, UNCP, WCU, WSSU • No increase: • NCSU, UNCC • The revenue generated ($27.2M) through tuition increases will be offset by a corresponding reduction to each institution’s appropriations (no new funds). • UNCW: ~ $3.5M

11. Mandatory Student FeesFY 2014-15

12. General Fees (subject to 6.5% cap) (Cap = $116.46) General Fees - … shall be fixed by the Board of Governors upon the recommendation of the Chancellor and the President. Current Fee Proposed Fee Requested 2013-142014-15Increase Athletics $538.55$654.55$116.00 Health Services 190.50190.50n/a Student Activities ** 664.15664.15n/a Educational & Technology 398.50398.50n/a Total request: $1,791.70$1,907.70$116.00 ** Student Activities: Student Support, Media, SGA, Union, Campus Recreation, Postal, Athletic Facilities, Cultural Events, ID/Debit Card, Leadership, Commencement

13. General Athletics Fee Requested 2013-14 Fee2014-15 RequestIncrease% Change $538.55 $654.55$116.0021.6% Committee Recommendations / Comments: $116.00 (21.6% increase) • Recommend full funding for the following: • Personnel ($331K) • 2 medical trainers, Associate AD – Business, teaching responsibilities removed, salary equity increases – trainers, baseball • Spirit group ($40K) – travel, operating • Scholarships ($263K) – 2% increase each year for three years • Transportation alternatives ($25K)– professional buses versus coach-driven vans • Marketing ($20K) – raise sponsorship support • Balance the overall budget ($621K) • Sports medicine trainer • Assistant golf coach • Resume IMG contract • Pep Band Director stipend • Reduce Men’s Basketball guaranteed game requirement

14. Indebtedness Fees Requested 2013-14 Fee2014-15 RequestIncrease% Change $448.40 $381.00($67.40)-15.0% Fee decrease supports the following: Current feeProposed feeChange • Recreation Expansion 216.40 201.00 (15.40) • Union Expansion 212.00 175.00 (37.00) • Westside (DePaolo Hall) 20.005.00(15.00) • Totals $448.40 $381.00 ($67.40) • Justification: • Reviewed both enrollment and interest rates in financing models to refinance debt at more favorable interest rates • Proposed reductions and modeled future revenues have been “stress-tested”

15. Proposal to Reduce Student Debt Service FeeAssumptions: - 11,450 Students (FTEs)- 0% Federal Interest Rate Subsidy

16. Student Census Trends

17. Student Feedback • Student Government Association held two open forums • 10/15 & 10/17 in midday and evening hours • Locations: Fisher Student Union and Leutze Hall • Additional student polling was also utilized • Both midday and evening hours • Locations: Fisher Student Union (Hawk’s Nest) and Wagoner Dining Hall • While debt service fee reduction was discussed with students, SGA felt it important to get student’s thoughts /concerns on Athletics fee “by itself” • Results • $116 Athletics Fee Increase: 68.03% In favor (200 votes), 31.97% Opposed (94 votes) • 294 students polled • Student Government members remained neutral • Did not vote in these polls

18. FY 2014-15 UNCW Mandatory Fee Requests Committee Current Fee Recommendation 2013-142014-15Increase General Fees (Part of 6.5% Cap) Athletics $538.55$654.55$116.00 Health Services 190.50190.500.00 Student Activities 664.15664.150.00 Educational & Technology 398.50398.500.00 Indebtedness (Excluded from 6.5% Cap) 448.40381.00(67.40) Special Fees (Excluded from 6.5% Cap) 0.000.000.00 Miscellaneous (Excluded from 6.5% Cap) Transportation $76.00$76.000.00 Association of Student Govt (ASG) 1.001.000.00 Total request $2,317.10$2,365.70$48.60 FY 2014-15 UNCW Mandatory Fees = 2.1% increase $116.00 <6.5%>

19. FY 2014-15 – Combined Tuition & Mandatory Fees • Undergraduate Resident (Academic Year):FY 2013-14FY 2013-14Change • Regular Term Tuition $4,026.00$4,026.00$0.00 • Mandatory Fees • General Fees 1,791.701,907.70116.00 • Debt Service 448.40381.00(67.40) • Special 0.000.000.00 • Miscellaneous 77.0077.000.00 • Total – Tuition + Mandatory Fees$6,343.10$6,391.70$48.60 0.77% • Undergraduate Non-Resident $18,479.81 $20,516.41 $2,036.60 11.02% • Graduate Resident $6,479.84 $6,528.44 $48.60 0.75% • Graduate Non-Resident $18,415.28 $18,463.88 $48.60 0.26%

20. Room + Board Rates

21. Proposed RoomRates Housing Types (Per Semester)2013-142014-15Increase Double rooms$2,402 $2,474$72.00 Belk, Galloway, Graham, Hewlett, Schwartz Suite Double rooms $2,716 $2,797$81.00 Honors, International, Double Suite, Cornerstone Apartments and Single Suites $2,909 $2,996$87.00 Seahawk Crossing $3,035$3,156$121.00 4-, 6-, 8-person suites Year-Round Leases (Annual Rates) Seahawk Village / Landing Two-Bedroom $7,804$8,117$313.00 Three-Bedroom $7,584$7,887$303.00 Four-Bedroom $7,264$7,556$292.00 Seahawk Crossing $7,284 $7,575 $291.00 FY 2014-15 rates increases over FY 2013-14: 3.0% - Housing Services Main; 4.0% - Seahawk Complexes)

22. Room Rate Justification • Research of housing rates: • Comparable to UNC-system institutions, UNCW national peer institutions and off-campus housing costs in Wilmington • Increases in room rates will provide: • Cost of living increases impacting most of the Housing budget: • Utilities (3.7% - electricity; 3.0% sewer and water) • Insurance – 3% • Administrative Support – 2.6% • Capital outlays (~ $1M): • Furniture replacement, safety items (bike racks, etc.), sustainability initiatives (recycling, water bottle refill stations), office upgrades, University Apartments flooring, HVAC – Belk, Hewlett/Graham • Meet debt service coverage requirement of 1.10x for future years • Transfer to BB&T for Maintenance & Equipment Reserve Fund: SV / SL / SC - $175.00 per bed (escalated by 3% annually, currently averages $201 per bed) • Housing System engineering study – identify maintenance required of aging facilities

23. Proposed Board Rates FY 14-15 (Per Semester) No change from FY 2013-14

24. Proposed Board Rates FY 14-15 (Per Semester) *Prepaid meals are taxed up front, the same as a prepaid cellular charge. This is in accordance with NC DOR instructions. In addition to the prepaid tax on meals, food dollars are taxed as used at the register, also in accordance with the new law. The tax on purchases with food dollars does decrease the buying power of the food dollars. For these three mandatory semester plans, the total tax paid, if all food dollars are used, is 7%, or $111.86. Thus the total cost of a meal plan priced at $1,598.00 is $1,709.86.

25. Combined FY 14-15 Room + Board Rates Effective Fall, 2014 Per Semester Double Rooms (14 Plus $225 Meal Plan) $4,072 Suite Double Rooms (14 Plus $225 Meal Plan) $4,395 Suite/Apartment Single Rooms (Seahawk 140 + $425 Meal Plan) $4,594 Seahawk Crossing (Seahawk 140 + $425 Meal Plan) $4,754 Per Year Seahawk Village / Landing (Seahawk 140 + $425 Meal Plan) Two bedroom $11,313 Three bedroom $11,083 Four bedroom $10,752 Seahawk Crossing (Seahawk 140 + $425 Meal Plan) $10,771 * This equates to a combined (Room + Board) increase of 2%Housing Main; 3% Seahawk Complexes

26. Board of Governor’s Textbook Report • The average cost of new and used textbooks for undergraduate students for an academic year increased by 18% (Avg. New, $1,105.16, and Avg. Used $832.09, after buyback). The previous year (FY12) costs increased 2.5%. In FY10 and FY11, costs declined. • The variance is primarily due to publisher price increases and increased use of technology. • Students continue to avail themselves of more savings options, including rental. • Faculty continue to seek ways to deliver coursework with No Textbook Required; 29% of spring adoptions • Faculty frequently use open internet sources and digital course guides.

27. Summary of ChangesCompliance w/ BOG Guidance

28. Compliance w/ BOG Guidance • “…requests for increases in campus-initiated tuition…” • In addition, combined rates for non-resident undergraduate students should be market-driven. • Combined tuition & fee rates for resident undergraduates shall remain within the bottom quarter of each campus’ public peers.

29. UNCW Peer Institutions(Approved by Board of Governors, October 2011) $1,419 Source: College Board

30. Compliance w/ BOG Guidance (cont.) “…all fees requiring Board review and approval including general fees, indebtedness fees, special fees and application fees must be justified…” “…students are an integral part of the tuition and fee process” Tuition & Fee requests not to exceed cap(s) for resident undergraduate students • Recommendations: CapRequestDifference • Tuition – none authorized$0$0n/a • General Fees (6.5%) $116.46$116.00-$0.46 • Total $116.46 $116.00 -$0.46

31. UNCW Student Financial CommitmentFY 2013-14 to FY 2014-15 • Example: Undergraduate, North Carolina resident, lives in Galloway Hall, owns a car (park on campus) and needs medical insurance. • Undergraduate Resident (Academic Year):FY 2013-14FY 2014-15Change • Regular Term Tuition $4,026.00$4,026.00$0.00 • Mandatory Fees • General Fees 1,791.701,907.70116.00 • Debt Service 448.40381.00(67.40) • Special 0.000.000.00 • Miscellaneous 77.0077.00 0.00 • Postal mailbox charge 22.00 22.00 0.00 • Room 4,804.004,948.00144.00 • Board (14 Plus $225 Plan) 3,196.003,196.000.00 • Parking Fee (Resident)350.00350.000.00 • Medical Insurance 1,376.001,528.00152.00 • Total (w/ Med Ins) $16,091.10$16,435.70$344.60 2.14% • Total (w/o Med Ins) $14,715.10 $14,907.70 $192.60 1.31% • Undergraduate Non-Resident • W/ Med Insurance $28,227.81 $30,560.41 $2,332.60 8.26% • W/O Med Insurance $26,851.81 $29,032.41 $2,180.60 8.12% • Graduate Resident • W/ Med Insurance, No Room + Board $8,227.83 $8,428.44 $200.60 2.44% • W/O Med Insurance, No Room + Board $6,851.84 $6,900.44 $48.60 0.71% • Graduate Non-Resident • W/ Med Insurance, No Room + Board $20,163.28 $20,363.88 $200.60 0.99% • W/O Med Insurance, No Room + Board $18,787.28 $18,835.88 $48.60 0.26%

32. Backup Slides

33. Miscellaneous Non-Mandatory Fees No non-mandatory fee requests submitted Current Non-Mandatory Fees Amount Freshmen Orientation Fee (Summer) $ 130.00 Freshmen Orientation Fee (Fall) 120.00 Orientation – Extension Program 20.00 Cameron School of Business Graduate Orientation Fee 150.00 Cameron School of Business MS CIS Orientation Fee 150.00 School of Nursing Graduate Orientation Fee 75.00 Graduate School Tuition Deposit 50.00 Returned Check Fee 25.00 Placement Center Service Fee 20.00 Parking (Resident) Fee 350.00 Scuba Diving Fee 80.00 Sailing Fee 80.00 Nursing Simulation Lab Fee 50.00 Duplicate Diploma Fee 50.00 Transcript Fee 8.00 Credit Card Transaction Fee 25.00 Resident Mailbox Fee 22.00 Pre-NCLEX Testing Fee 530.00 WSE Out-of-Area Internship 1,000.00 Graduate Application Fee 6.00

34. Peer and UNC Comparisons

35. UNCW Peer Institutions(Approved by Board of Governors, October 2011) $1,513 Source: College Board

36. FY 2013-14 Tuition (Resident – U/G)

37. FY 2013-14 Tuition (Non-Resident – U/G)

38. FY 2013-14 Tuition (Resident – Grad)

39. FY 2013-14 Tuition (Non-Resident – Grad)

40. FY 2013-14 Fees (Applications - Undergraduates)

41. FY 2013-14 Fees (Athletics)

42. FY 2013-14 Fees (Health Services)

43. FY 2013-14 Fees (Student Activities)

44. FY 2013-14 Fees (Ed & Tech)

45. FY 2013-14 Fees (General Fees Total)(Athletics + Health + Ed & Tech + Student Activities) Does not include Debt nor Miscellaneous Fees

46. FY 2013-14 Fees (Indebtedness)

47. Historical Tuition and Fee Data

48. Student Tuition – Resident StudentsFY 07-08 thru FY 13-14 6.3% 6.5% 16.0% 6.5% 8.6% 1.9% Note: In FY 2010-11, CITI increase was 2%, coupled with $411 supplemental tuition increase to meet legislative reductions. In FY 2012-13, CITI increases included 6.5% , coupled with yar-1 “catch-up” of $308.00.

49. Student Tuition – Non-Resident StudentsFY 07-08 thru FY 13-14 6.5% 4.9% 5.0% 6.3% 6.5% 2.0% 1.8% Note: In FY 2010-11, CITI increase was 2%, coupled with $412 supplemental tuition increase to meet legislative reductions. In FY 2012-13, CITI increase was 3.3%, coupled with $300.00 year -1 “catch-up” for undergraduate non-resident students.

50. Peer ComparisonsTuition & Mandatory Fees