Restructuring NWCCU Dues Current Institutional Dues EG 2018

Restructuring NWCCU Dues

Current Institutional Dues E&G 2018 -2019 Expenditures ($) Dues ($) 1, 2 Under 4 M 3, 821 Tier • Unchanged structure/formula since before 2003 • 18 tiers based on institutional E&G expenditures • Not reflective of changes during last two decades in budgets, enrollments, demographics, other factors • Institutions grouped arbitrarily § e. g. , Seattle University and University of Washington • UW’s E&G expenditure is 15 X and enrollment is 7 X that of SU 3 4 -6 4, 460 4 6 -8 5, 416 5 6 8 -10 10 -12 6, 371 7, 331 7 12 -14 8, 285 8 14 -16 9, 558 9 16 -18 10, 514 10 18 -20 11, 470 11 20 -22 12, 429 12 13 14 22 -24 24 -30 30 -42 13, 384 14, 342 15, 299 15 42 -66 16, 270 16 66 -114 17, 524 17 114 -210 18, 480 18 Over 210 19, 756

Dues at Regionals • Regionals use simple to complex calculations and annual dues vary significantly, ranging from a low of almost $4, 000 to almost $160, 000 • The simplest dues are calculated primarily using student FTE or E&G or combination of FTE and E&G • Most complex dues include combinations of base amount plus student FTE plus E&G plus number of branch campuses and additional complex formulas Low Mid High $25, 450 $77, 000 WSCUC $11, 220 $34, 656 $158, 810 NECHE $6, 722 $29, 616 $33, 278 NWCCU $3, 821 $10, 514 $19, 756 HLC $4, 500

Guiding Principles • Non-profit membership organizations must derive most of their income identifiably from dues • Dues must be fair and equitable • Dues model must be simple, clear, and rational • Must provide value proposition of accreditation for institution and students • Consider the context of the institution, i. e. , enrollments, E&G, location, student profile, etc. • Must not result in significant changes to existing dues or total income for NWCCU • Institutional and total dues must be reanalyzed/reassessed every year • Be all-inclusive and not need additional fees, beyond what is charged for reports, evaluation, visits, workshops, and substantive change proposals • Any increase in total dues must be minimal (~inflation rate) or not at all • Combination of dues, fees, visits, meetings/workshops income, and future endowment

NWCCU Income and Operating Expenses • FY 2018 -2019 income of $3. 62 million, included Dues (~70 %), Evaluation Visits (~14 %), Meetings and Workshops (~12 %), Substantive Change Fees (~2. 5 %), and Reports (~1. 5 %) • FY 2018 -2019 annual operating expenses of ~$3. 53 million included § Salaries and Benefits, Evaluation Visits and Training, Workshops, Annual Conference, Technology, Commission Expenses, Insurance, Staff Accreditation Visits, Operations, Repairs and Renovations, Utilities, Conferences and Meetings, Membership (CHEA, ACE, Penn Hill), Attorneys, Audits/Accounting, Custodial, Washington State Taxes, Landscape, Miscellaneous

FY 2018 -2019 Proposed New Dues FY 2020 -2021 $2, 510, 000 $2, 823, 000* Evaluation Visits $525, 000 Reports $50, 000 0 Substantive Change $100, 000 0 Workshops $450, 000 $3, 635, 000 $3, 798, 000 Source Dues Total *Base of $5, 000 + $5, 000 for E&G tiers of $10 -$20 M; + 4, 000 for E&G $20 -$30 M; +$3, 000 for E&G $30 -$50 M; +$2, 000 for E&G $50$100 M; +$2, 000 for E&G $100 -$200 M; +$2, 000 for E&G $200 -$500 M; +3, 000 for E&G $500 M-$1 B; +$4, 000 for E&G >$1 B

Proposed New Dues • Iterative process of looking at multiple models with the help/approval of Commissioners • New model with eight tiers of annual Dues ranging from $5, 000 to $30, 000 per year based on institutional E&G expenditures • One annual charge will include Dues, Substantive Change Fees, and Special Report Fees • Generate ~75 percent of base income and accommodate annual variation in income from other sources • Meet WA state requirement • Dues will be reanalyzed/reassessed annually based on reported annual, institutional E&G expenditures and projected NWCCU income and expenditures for the upcoming budget year • Amount of Dues may increase or decrease depending institutional budgets • Minimal increase (~ annual inflation rate) or no increase at all • Use future endowment and other income to hold down increases or reduce Dues • No Dues increase for FY 2019 -2020 • Operationalize in FY 2020 -2021

2018 -2019 2020 -2022 Institution E&G Dues Tillamook Community College $6, 186, 903 $5, 416 $5, 000 Oregon Coast Community College $6, 817, 669 $5, 416 $5, 000 Columbia Gorge Community College $14, 131, 850 $9, 558 $10, 000 Clatsop Community College $15, 821, 669 $9, 558 $10, 000 Klamath Community College $20, 801, 318 $12, 429 $14, 000 Blue Mountain Community College $29, 248, 641 $14, 342 $14, 000 Treasure Valley Community College $29, 708, 013 $14, 342 $14, 000 Umpqua Community College $34, 297, 057 $15, 299 $17, 000 Southwestern Oregon Community College $34, 765, 332 $15, 299 $17, 000 Linn-Benton Community College $70, 656, 017 $17, 524 $19, 000 Central Oregon Community College $72, 858, 561 $17, 524 $19, 000 Rogue Community College $73, 588, 063 $17, 524 $19, 000 Oregon Institute of Technology $76, 864, 270 $17, 524 $19, 000 Clackamas Community College $80, 446, 156 $17, 524 $19, 000 Mt. Hood Community College $101, 461, 000 $17, 524 $21, 000 Chemeketa Community College $138, 444, 071 $18, 480 $21, 000 Lane Community College $147, 956, 435 $18, 480 $21, 000 Portland Community College $348, 277, 924 $19, 756 $23, 000 Delta -$416 $442 $1, 571 -$342 $1, 701 $1, 476 $1, 476 $3, 476 $2, 520 $3, 244 2018 -2019 Reports Sub Change $0 $0 $0 $1, 000 $0 $0 $0 $0 $1, 500 $0 $0 $1, 000 $0 $0