Open Hearing on Tuition and FeesMay 19, 2020 

University Overview

Student Tuition & Fees29%

State Appropriations & State Paid Fringe

Benefits20%

Grants & Contracts13%

Patient Care21%

Auxiliary Enterprise7%

Federal and State Student Aid5%

Gifts & Endowments2%

Other3%

Budget FY 2020 Revenue $4.6 Billion

3

Pressure on Revenue

Tuition and Fees ~29%

Student affordability and access, federal changes to financial aid and student support, as well as public scrutiny on rising costs

State Appropriations ~20%

Constrained State government spending not keeping pace with the growth of the University

Patient Care ~21%

Impact of health care reform, federal and state health care spending

Grants and Contracts ~13%

Significant federal government spending cuts impacting revenue

Note: The remaining 17% is made up of various revenue sources. 4

Salary & Wages50%

Fringe Benefits16%

Scholarships & Fellowships

9%

Services7%

Supplies & Materials5%

Utilities, Repairs and Maintenance

3%

Debt Service4%

Other6%

Budget FY 2020 Expense $4.6 Billion

5

Expense Constraints

Salary and Wages ~50%

All 22 labor unions have negotiated, mandatory annual salary increases

Fringe Benefit Costs ~16%

Dictated by the State, based on cost projections; the University pays approximately 50% of all benefit costs; remainder covered by the State

Financial Aid ~9%

Providing access through affordability with Rutgers Institutional Aid

All Other ~25%

Areas where the University has seen increases in consumables, service contract escalations, construction costs, and food services.

~66%

6

Tuition, Fees and Financial Aid

2.2% 2.2% 2.2%

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

NJCU MontclairSt

NJIT TCNJ Kean Stockton R-NB R-N R-C Rowan Ramapo WmPaterson

New Jersey Senior Public Institutions

.

5-Year Average Annual Tuition and Fee Increases

CAMDEN

NEW

BRUNSWICK

NEWARK

8

$0

$2,000

$4,000

$6,000

$8,000

$10,000

$12,000

$14,000

$16,000

$18,000

NJIT TCNJ Rutgers-NB Rutgers-C Rutgers-N Ramapo Stockton Rowan WmPaterson

Montclair St Kean NJCU

New Jersey Senior Public Institutions

CAMDEN

NEW

BRUNSWICK

NEWARK

9

FY 2020 Tuition and Fees

2.2%

-2%

-1%

0%

1%

2%

3%

4%

5%

6%

7%

Virg

inia

Ore

gon

Texa

s A&

MSt

ony

Broo

kIo

wa

Stat

eIo

wa

Buffa

loC

olor

ado

Ariz

ona

Mic

higa

nM

aryl

and

Rut

gers

Geo

rgia

Tec

hPi

ttsbu

rgh

Mis

sour

iM

inne

sota

Ohi

o St

ate

Texa

sU

C-B

erke

ley

Mic

higa

n St

ate

Nor

th C

arol

ina

UC

-San

Die

goKa

nsas

Penn

Sta

teIn

dian

aU

C-D

avis

UC

LAU

C-Ir

vine

UC

-San

ta B

arba

raW

isco

nsin

Flor

ida

Illin

ois

Purd

ueW

ashi

ngto

n

New Brunswick & Comparators - AAU Publics

10

5-Year Average Annual Tuition and Fee Increases

FY 2020 Tuition and Fees

$0

$2,000

$4,000

$6,000

$8,000

$10,000

$12,000

$14,000

$16,000

$18,000

$20,000Pi

ttsbu

rgh

Penn

Sta

teVi

rgin

iaM

ichi

gan

Rut

gers

-NB

Illin

ois

Min

neso

taU

C-D

avis

Mic

higa

n St

ate

UC

-San

Die

goU

C-S

anta

Bar

bara

UC

-Ber

kele

yU

C-Ir

vine

UC

LAO

rego

nAr

izon

aG

eorg

ia T

ech

Col

orad

oTe

xas

A&M

Was

hing

ton

Kans

asO

hio

Stat

eIn

dian

aTe

xas

Mar

ylan

dW

isco

nsin

Buffa

loM

isso

uri

Ston

y Br

ook

Purd

ueIo

wa

Iow

a St

ate

Nor

th C

arol

ina

Flor

ida

New Brunswick & Comparators - AAU Publics

11

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

3.5%

4.0%

12

5-Year Average Annual Tuition and Fee Increases

2.2%

New Brunswick & Comparators - Big 10 Institutions

$0

$2,000

$4,000

$6,000

$8,000

$10,000

$12,000

$14,000

$16,000

$18,000

$20,000

13.

FY 2020 Tuition and Fees New Brunswick & Comparators - Big 10 Institutions

2.2%

0%

1%

2%

3%

4%

5%

5-Year Average Annual Tuition and Fee Increases

14

Newark & Comparators

$0

$2,500

$5,000

$7,500

$10,000

$12,500

$15,000 Newark & Comparators

FY 2020 Tuition and Fees

15

2.2%

0%

1%

2%

3%

4%

5%

16

5-Year Average Annual Tuition and Fee Increases

Camden & Comparators

$0

$2,000

$4,000

$6,000

$8,000

$10,000

$12,000

$14,000

$16,000

$18,000

FY 2020 Tuition and Fees

17

Camden & Comparators

18

NEW BRUNSWICK NEWARK CAMDEN

% AVGAWARD % AVG

AWARD % AVGAWARD

NEE

D

BASE

D

All Need Based Grant AidFederal Need Based LoansFederal Work Study

39.9%40.7%

7.7%

$11,092$4,351$1,591

68.8%44.8%

9.2%

$11,596$4,158$1,553

63.0%59.0%

5.1%

$10,224$4,131$1,567

MER

IT

Admissions/ Recruitment GrantsOther Merit GrantsTotal Merit Grants

9.1%2.7%

11.1%

$11,694$5,799

$10,994

0.8%6.0%6.2%

$10,106$8,514$9,633

35.2%1.7%

36.5%

$5,572$5,504$5,643

Total Merit and Need Based Grants 47.5% $12,059 70.4% $12,172 75.2% $11,313

Year over Year Change in Total Merit and Need Based Grants

$564;4.9%

$372;3.2%

$1,063;10.4%

Financial Aid

19

NEW BRUNSWICK NEWARK CAMDEN

# Total # Total # Total

NEE

D

BASE

D All Need Based Grant AidFederal Need Based LoansFederal Work Study

14,36814,6562,785

$159,375$63,763

$4,430

6,2904,098

838

$72,940$17,038

$1,301

3,6413,407

295

$37,225$14,075

$462

MER

IT Admissions/ Recruitment GrantsOther Merit GrantsTotal Merit Grants

3,270976

3,993

$38,239$5,660

$43,899

75548563

$758$4,666$4,424

2,034100

2,106

$11,333$550

$11,884

Total Merit and Need Based Grants 16,857 $203,274 6,438 $78,364 4,341 $49,109

Year over Year Change in Total Merit and Need Based Grants

$8,536;4.4%

$6,114;8.5%

$8,406;20.7%

Financial Aid

20

Note: Dollars in Thousands

$13,844 net price out of $27,568 total costs$13,844 net price out of $27,568 total costs

Camden

$11,981 net price outof $26,333 total costs$11,981 net price outof $26,333 total costs

Newark

$16,873 net price out of $31,041 total costs$16,873 net price out of $31,041 total costs

New Brunswick

• Average net price for Rutgers’ first-year, in-state students receiving scholarship/grant assistance:

• Total costs include tuition, fees, room, board, and other expenses. Figures shown are impacted by commuter/resident mix at each location.

Financial Aid

21

Total Cost vs Net PriceNew Brunswick Students First Time Full Time In State Undergraduates

$0

$5,000

$10,000

$15,000

$20,000

$25,000

$30,000

$35,000

FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019

Total Cost Family Income $0-$30K Family Income $30K-$48K

22Notes: Income cohorts include FTFT instate undergraduates awarded any Title IV federal aid (grants, loans, work study).Net price based on grant aid awarded only (all sources) for families with incomes between $0 to $30,000 and $30,001 to $48,000.

Unrestricted Net Position

Rutgers FY19 “Unrestricted Net Position” $583 million *

24

Faculty Funds14%

Student Services

6%

Designated Funds18%

Capital Improvements

20%

Invested Funds34%

Insurance 8%

*Net of GASB 68 Adjustment. From Rutgers’ 2018-2019Financial Report, page 9,Management Discussion and Analysis

Invested Funds 34% - Includes BOG and BOT reserves for need-based student aid, funds for student merit aid, funds held by schools/centers/departments for current and future strategic initiatives, etc.

Capital Improvement Funds 20% - Funding for deferred maintenance and construction projects in progress, such as ongoing residence hall renovation and other construction projects across all campuses.

Designated Funds 18% - Funds held for department funded financial aid and strategic initiatives, multi-year projects, one-time support services, and capital reserves for Auxiliary Enterprises.

Faculty Funds 14% - Funds committed to individual faculty members to support research initiatives.

Insurance Funds 8% - Support of the University’s self-insurance program.

Student Services 6% - Funds held by student service areas such as student and recreation centers and student health, and for strategic initiatives and one-time expenses.

25

0.00 0.20 0.40 0.60 0.80 1.00 1.20 1.40 1.60

Rutgers

Illinois

Maryland

Iowa

Indiana

Nebraska

Ohio State

Penn State

Michigan State

Minnesota

Michigan

Purdue

Source: Moody’s Investors Service 2019; University of Illinois and University of Nebraska only has FY18 data at this time.

Ratio of Spendable Cash & Investments to Operating Expense

State Appropriations / Tuition and Fees / Key Challenge

27

State Appropriations / Tuition and Fees

Source: Rutgers BOG Approved Budget

28

Key Challenge

How does RUTGERS remain

ACCESSIBLEAFFORDABLE HIGH QUALITY

with a great ROI

&

Balanced Budget?

Looking Forward

29

Accessible

Affordable

High Quality

Great ROI

FY 2020• Hiring freeze, voluntary salary reductions, limits on

salary increases, moratorium on discretionary spending and travel, “hibernation” of buildings to limit spending; pursuing other HR actions; halting capital project planning

• Use of large amount of reserves and other available funds

FY 2021• Modeling various opening scenarios including remote

and hybrid

• Continuing spending limits

• Concerned about incoming classes and retention as well as international student enrollments

• Uncertainty about New Jersey State Appropriations

• Holding tuition and fees flat for undergraduate and Graduate School programs

• Will refine budget projections throughout the summer

A mind that is stretched by a new experience can never go back to its old

dimensions.

Oliver Wendell Holmes. Jr.