Portland State University 2017 18 Undergraduate Tuition Rate

Portland State University 2017 -18 Undergraduate Tuition Rate Proposal May 10, 2017 H

Presentations by: Rick Miller, Portland State University Board of Trustees, F&A Committee Chair, Incoming Board Chair Wim Wiewel, President Sona Andrews, Provost and Chief Academic Officer Kevin Reynolds, Vice President, Finance and Administration

Rick Miller - Board of Trustees From the Board of Trustees’ Perspective: ● High level of confidence in the PSU team - responsive, rigorous, transparent ● Board focus - strategic planning, student success, partnerships ● Unanimous but regrettable support for the tuition increases ● Balanced response - tuition increases & cost reductions ● Financial challenges ahead

Rick Miller - Board of Trustees PSU Board Approved Tuition Rates FY 17 -18 2016 -17 Per Credit Hour Rate 2017 -18 Proposed Per Credit Hour Rate $ Increase % Change Resident Undergraduate $156 $170 $14 8. 97% Non-Resident Undergraduate $523 $550 $27 5. 16% Resident Graduate $368 $401 $33 8. 97% Non-Resident Graduate $576 $605 $29 5. 03% 2016 -17 Per Term Rate 2017 -18 Proposed Per Term Rate $ Increase % Change Student Building Fee $45 $37 -$8 -18. 00% Incidental Fee $221 $238 $17 7. 69% Health Service Fee $129 $141 $12 9. 30% Recreation Center Fee (ASRC) $44 $0 0. 00%

Rick Miller - Board of Trustees PSU Board Approved Tuition Rates FY 17 -18 2013 -14 2014 -15 2015 -16 2016 -17 Proposed 2017 -18 Quarterly Increase Annual Increase Undergraduate (15 SCH) Resident $2, 628 $2, 598 $2, 678 $2, 779 $3, 010 % Change 3. 02% -1. 14% 3. 08% 3. 77% 8. 31% $231 $693 ● We have intentionally kept tuition increases modest in recent years

Rick Miller - Board of Trustees ● PSU Tuition Proposal at the limits of cost reductions we cannot cut our way and reach our vision “an equitable and sustainable future through academic excellence, urban engagement and expanding opportunity for all” ● Investments to provide ○ Upward mobility opportunity for our students ○ Much needed well-trained work force for the region ● Board of Trustees will revisit tuition rates and cost reductions with a higher Public University Support Fund Allocation ● Anticipate tuition rate increases should be lower in the 2 nd year of the biennium

President Wim Wiewel Nine Years of Progress ● 46% increase in students of color who now represent 38% of enrollment; 198% increase in Latino students ● 20% Increase in undergraduate degrees to 5, 785 ● 14% Increase in tenured faculty to 655 ● Expanded academic advising and added cultural centers for Latino, African American, and Asian/Pacific Islander students ● 6% increase in six-year rate for entering freshmen to 47% last year ● Retention rate for freshmen to sophomore years has grown to 73%

President Wim Wiewel Success has come despite essentially flat state support PUSF Allocation to PSU in Nominal Dollars

President Wim Wiewel PSU has the lowest allocation per degree in Oregon FY 17 State Allocation per Degree We should be investing in PSU and the success of our students

President Wim Wiewel Peer and Oregon Resident Undergraduate Tuition

President Wim Wiewel HECC Criteria 3: A plan for how the university’s board and central administration are managing costs on an ongoing basis. Item Retirement Costs Salaries and Wages Additional Cost $5. 2 million $4. 12 million Other Payroll Costs (including health care costs through PEBB) $850, 000 Estimated Cost of Minimum Wage Increase $680, 000 Additional Investments Total $0 $10. 85 million

President Wim Wiewel The High Cost of Reductions ● PSU has committed to finding $9 million of reductions, if necessary ● A 5% cap on resident tuition would require finding an additional $5 million in cost reductions ○ Long term negative impact on mission ○ Hurt our most vulnerable students ● Our proposal reflects a balanced and thoughtful approach

Provost Sona Andrews HECC Criteria 3: A plan for how the university’s board and central administration are managing costs on an ongoing basis. - Instruction and service delivery that is responsive to demand ● PSU is focused on improving student outcomes while containing costs through curricular innovation, community engagement and effective use of technology, giving students low-cost opportunities to complete their degrees and improving their access to advising ○ 29 Flexible degrees and certificates including credit for prior learning, online and hybrid courses ○ Redesigned advising and invested in 12 advising positions ○ Creating interactive degree maps allowing students to dynamically compare academic pathways in relation to time and cost allowing them to make good degree planning decisions and reduce their cost

Provost Sona Andrews Impact of $9 Million Reductions ● 19 Full-time instructional positions and about 160 Adjunct sections ○ Potential impact on students’ time to degree and retention and graduation rates ● 14 staff positions, including at least 2 academic advisors ○ Decreases support to students and, similarly, impacts students’ time to degree and retention and graduation rates (higher cost to students) ● Academic Quality

Vice President Kevin Reynolds HECC Criteria 4: A summary of how students, faculty and staff were consulted on the proposed tuition increases. Over 9 months of meetings to share information and receive feedback: - Board of Trustees and Administration hosted six budget roundtable meetings, some with only students, others with faculty, staff, union leadership, and legislators - F&A Committee of the Board of Trustees discussed budgetary challenges throughout the fall and winter ahead of the April 5 th meeting where the tuition proposal was unanimously approved - Student Budget Advisory Committee (SBAC) met five times to understand the budget environment and participate in discussions about multiple tuition scenarios. SBAC provided written and verbal testimony at F&A Committee meetings - Met with ASPSU, Faculty Senate Budget Committee, Academic Leadership Team - Hosted a campus-wide budget forum including faculty, staff, and students Hundreds of people participated Many opportunities for feedback and dialogue

Vice President Kevin Reynolds HECC Criteria 1: Clear and significant evidence that the university gave serious consideration to alternatives that involved tuition and fee increases below the 5% threshold. ● 14 months during which multiple tuition scenarios ranging from 0% to 10% were considered and discussed - documented in materials provided ● Pushed ourselves to find reductions and found those beyond the $9 million would have a deleterious effect on students ● Evaluated higher tuition increases for other student types ● We continue to look at long-term solutions

Vice President Kevin Reynolds State Appropriation Tuition Increase Budget + Cut from CSL* $620 million 5% All -1. 2%/ -$3. 5 million -$17. 9 million $640 million 5% All -0. 4%/-$1. 2 million -$15. 6 million $660 million 5% All 0. 4%/$1. 2 million -$13. 2 million $680 million 5% All 1. 2%/$3. 5 million -$10. 9 million State Appropriation Tuition Increase Budget + Cut from CSL* $620 million 9% Res/ 5% Non-Res 0. 1%/$280 thousand -$14. 1 million $640 million 9% Res/ 5% Non-Res 1. 0%/ $2. 6 million -$11. 8 million $660 million 9% Res/ 5% Non-Res 1. 7%/$5 million -$9. 4 million $680 million 9% Res/ 5% Non-Res 2. 5%/$7. 3 million -$7. 1 million Approved Minutes January 26 th - “Committee members discussed the scenarios presented and reached consensus, given the current information, that the university plan its FY 18 budget at 1. 5% over the FY 17 budget”

Vice President Kevin Reynolds Peer and Oregon Non-Resident Undergraduate Tuition

Vice President Kevin Reynolds HECC Criteria 2: Clear and significant evidence of how Oregonians who are underrepresented in higher education, including low-income students and students of color, would benefit more under the university’s proposal than one that stays within the 5% threshold. ● Resident undergraduate annual increase $693 ● Average annual increase in tuition remission of nearly $900 per Pell-eligible resident undergraduate student in 2017 -18 ● Made possible by higher tuition increase and higher remission budget ● Not possible with 5% tuition increase cap ● Additional cuts necessary would impact underrepresented students disproportionately

Vice President Kevin Reynolds HECC Criteria 5: A summary of how tuition will be affected should additional state funds beyond the number in the Governor’s Recommended Budget be appropriated. ● The Governor’s letter to the HECC - 5 criteria on April 11, 2017 ● The PSU Board of Trustees - proposed tuition increases April 11 th, 2017 ● Last biennium PSU reduced tuition increase after a PUSF increase ● PUSF + $100 Million to keep tuition below 5% ● Increase in PUSF - commitment from Board to review both cost reductions and tuition increase