University SUI / ISU / UNI Tuition Category Undergraduate Residency Status Nonresident Proposed increase (%): 2.8%, or $519, above HEPI (in addition to HEPIbased increase) Discussed with leadership of: Faculty? Yes Staff? Yes Students? Yes Discussed with other university presidents? Provide clear and concise explanation along with convincing justification for proposed increase (use as much space as necessary and attach other documents as appropriate, i.e. comparative peer data) The University of Iowa proposes a tuition rate increase of 6.0% for nonresident undergraduate students – a 2.8% differential above the planned increase for resident undergraduate students. This increment is projected to generate approximately $3M gross tuition revenue. Over the past several years the University has invested funds generated from differential nonresident rate increases to advance strategic initiatives including: • • • Improving the level of preparation of entering students – a record-setting 17% of the Fall 2007 entering class enrolled in the Honors Program; Expanding the diversity of entering classes – from Fall 2006 to Fall 2007 overall diversity (first year plus transfers) among new undergraduates grew by 8.2%; Increasing faculty salaries relative to peers – from 9th to a 6th place ranking among Big 10 public institutions. The University would like to continue to make progress toward these and other areas of the strategic plan. Toward this end funding would be directed toward undergraduate student financial aid, programs designed to improve first-year retention and four-year graduation rates, and faculty positions to maintain quality programs. In FY 2009 the University will use a portion of the nonresident differential funding to continue the enhancement of undergraduate student financial aid programs. Beginning in FY 2007 financial aid funds were reallocated across student groups relative to tuition generation. This, coupled with the application of incremental proceeds, resulted in increased financial aid funding for undergraduates. Specifically related to nonresidents, FY 2009 is the final year of a multi-year process to increase the National Scholars Award program, available to entering nonresident and international first-year students who have a UI Admission Index Score of 129 or above. Funds will also support the Iowa Heritage Award, available to entering nonresident students who have a parent, stepparent, legal guardian, or grandparent who graduated from The University of Iowa with a bachelor’s, master’s, or doctoral degree. To promote the retention of first-year students and improve four-year graduation rates, 1 incremental tuition revenue will be earmarked for initiatives based on proven retention practices including: • • • Expansion and improvement of the learning communities programs; Expansion of peer-led supplemental instruction for the most challenging courses; Development of a program for early identification of and intervention with students at risk of failing to persist. It is projected these initiatives would result in an increase of 1.5 percentage points in first to second-year retention rates generating approximately $630,000 in the second year alone. Funds would also support the instructional needs of the undergraduate colleges brought on by the recent strong demand in student enrollments. With a record-setting first-year freshman class in Fall 2006 (4,289) and another in Fall 2007 (4,287), undergraduate colleges have maximized their efficiency in delivering their programs. To maintain quality programs additional resources are needed. Peer comparison data is listed below: 2007-08 Tuition & Fees Resident Non Resident Illinois 11,130 Michigan 32,400 Michigan 11,111 UCLA 27,331 Minnesota 9,798 Illinois 25,216 Ohio State 8,676 Texas - Austin 24,544 Indiana 7,836 Indiana 22,315 UCLA 7,711 Wisconsin 21,438 Texas – Austin 7,670 Minnesota 21,428 Wisconsin 7,188 Ohio State 21,285 UNC-Chapel Hill 20,987 Iowa 6,273 UNC-Chapel Hill 5,339 Iowa 19,445 Arizona 5,048 Arizona 16,282 Concisely describe how proposed increase will assist the university in making progress on strategic goals and objectives This plan is consistent with The Iowa Promise: A Strategic Plan for The University of Iowa 2005-2010. Specifically, the additional tuition revenue will support the following strategies: Vitality GOAL: To strengthen the University’s intellectual and community vitality. Strategy: Build an exemplary University community by: • Providing nationally competitive faculty salaries and establishing new faculty positions in critical areas. Diversity GOAL: To promote excellence in education by increasing the diversity of the faculty, staff, and students. Strategy: Build a critical mass of underrepresented faculty, staff, and students by: • Increasing the diversity of the faculty, especially in tenured and tenure track positions. Undergraduate Education GOAL: To create a University experience that enriches the lives of undergraduates and helps them to become well-informed individuals, lifelong learners, engaged citizens, and 2 productive employees and employers. Strategy: Recruit and retain a student population that can succeed at a comprehensive research university, and nurture their success, by: • Providing access through an appropriate blend of merit- and need-based financial aid and by increasing the amount of aid available. Does the tuition amount cover the full cost of education as calculated by the biennial unit cost study? YES I:\VPFO\Yanecek\09TuitionFees-Nonresident Undergraduate.doc 3