UNIVERSITY OF KENTUCKY2010-11 Tuition and Mandatory Fees

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Considerations

Tuition and

Mandatory Fees

CPE Parameters

State Appropriati

ons

Fixed Cost Increases

Maintaining

MomentumAffordabilit

y

2010-11 Tuition and Mandatory Fees Schedule• January – April: Discussions with CPE President and Staff

• April 21: Campus Forum

• April 23: CPE sets tuition parameters

• April 27: UK Board of Trustees approves tuition/fees

• May 21: CPE reviews UK’s tuition/fees

• June 8: UK Board of Trustees approves 2010-11 Operating and Capital Budget, including program and course fees

Where the money comes from and what it pays for(2009-10 Operating Budget - $2.4 billion)

45%

25%Undesignated General Funds

Money comes from:•State appropriations•Tuition and Mandatory Fees•Investment income•Service assessments

Pays for:• Teaching• Public service• Administrative support• Scholarships

Designated General Funds

Money comes from:• UK HealthCare• County

Appropriations• Course and

program fees

Pays for:• Public service• Instruction

5%19%

7%

Auxiliary Funds

Money comes from:• UK Athletics • Housing• Dining• Parking

Pays for:• Self-supporting

auxiliary units pay all theirexpensesand receive no taxpayer or tuitionsupport

Restricted Funds

Money comes from:• Research grants

and contracts• Endowment income• Gifts• Federal and state

student aid

Pays for:• Research• Scholarships• Public service

Fund Balance

Money comes from:• Savings from prior

years

Pays for:• Capital projects• Faculty start-up

packages• Pilot programs

Where the money comes from and what it pays for(2009-10 Operating Budget - $2.4 billion)

Revised 2009-10 Operating Budget Revenue

Undesignated General Funds:

• State Appropriation – Operating $310,521,400

• Tuition and Mandatory Fees 262,628,600

• Other Undesignated 24,046,000 $597,196,000

Designated General, Auxiliary, and Restricted Funds 1,668,937,500

Fund Balance - Nonrecurring

164,509,100

Total 2009-10 Operating Budget Revenue $2,430,642,600

State Appropriations, net of debt service (in millions)

$280,000,000

$290,000,000

$300,000,000

$310,000,000

$320,000,000

$330,000,000

$340,000,000

$303,026,400.0

$280,211,900.0

$306,341,800.0

$335,071,000.0

$306,517,700.0

Original budgetMid-year cut

Actual = Budget

For FY 2009-10, the state replaced $21.1 million in state appropriations with federal stimulus funds. For FY 2010-11, it is anticipated that the state will replace $17.2 million in state appropriations with federal stimulus funds.

$289.2

Federal Stimulus Funds

Gross Tuition and Mandatory Fee Revenue and Net State Appropriations

(actual in millions)

State appropriations net of debt service and mandated programs.

*Projected

01-02 02-03 03-04 04-05 05-06 06-07 07-08 08-09 09-10*

Tuition & Fees

121 131 154 179 201 225 239 261 274

State 224.4 216 213.6 205 229.4 232 242.5 230 209

$75

$125

$175

$225

$275

Undesignated General FundsEstimated Fixed Cost Increase - FY 2010-11

Personnel:

• Faculty Promotions/Fighting Funds $937,700

• Benefits 7,281,900 $8,219,600

Operating Expenses:

• Student Financial Aid ?*

• Implementation of General Education Curriculum 2,000,000

• Utilities 1,000,000

• Other Operating Expenses 689,000

Total Fixed Cost Increase $11,908,600

*The increase in the cost of student financial aid is dependent upon the increase in the level of tuition.

Maintaining MomentumTotal Enrollment

01-02 02-03 03-04 04-05 05-06 06-07 07-08 08-09 09-1023,000

24,000

25,000

26,000

27,000

28,000

24,791

25,741

26,26026,545 26,439

27,209

26,648 26,91327,171

Maintaining MomentumFirst- to Second-Year Retention

01-02 02-03 03-04 04-05 05-06 06-07 07-08 08-0974

75

76

77

78

79

80

81

82

79.3

77.1

78.478.9

77.8

76.4

81.0

80.3

Maintaining MomentumDegrees Awarded

01-02 02-03 03-04 04-05 05-06 06-07 07-08 08-094,800

5,000

5,200

5,400

5,600

5,800

6,000

4,971 4,970

5,2475,313

5,503

5,637

5,803

5,703

Maintaining MomentumGeneral Education Reform

In May 2009, the University Senate adopted a new General Education curriculum. When implemented, every course in the new General Education Foundation curriculum will:• Be conducted as a small class or, at least, incorporate a

small-group breakout session; and• Have defined outcomes and an embedded “assessable

product.”

AffordabilityRESEARCH UNIVERSITIES

AffordabilityResident Undergraduate Tuition and Fees, FY 2010

Penn State University University of Pittsburgh

University of Illinois-Urbana-ChampaignRutgers University

University of MichiganUniversity of Minnesota

University of VirginiaUniversity of California - Davis

University of Texas - AustinUniversity of California - San Diego

Ohio State UniversityPurdue University - Main CampusUniversity of California - Berkeley

University of WisconsinUniversity of California - Los Angeles

University of KentuckyUniversity of Maryland

University of WashingtonGeorgia Institute of Technology

University of North Carolina - Chapel HillUniversity of Florida

$14,416

$14,154$12,528

$11,886

$11,659$11,293

$9,872$9,358

$8,930$8,792

$8,679$8,638

$8,353$8,310

$8,266$8,123$8,053

$7,692$6,265

$5,625

$4,373

Median: $8,679

*Per the Top 20 Business Plan

Source: 2009-10 Survey of Tuition and Required Fees Summary - University of Virginia

UK and Top 20 Institutions*

AffordabilityNon-Resident Undergraduate Tuition and Fees, FY 2010

University of MichiganUniversity of California - Davis

University of VirginiaUniversity of California - San Diego

University of California - BerkeleyUniversity of California - Los Angeles

University of Texas - AustinUniversity of Illinois-Urbana-Champaign

Penn State UniversityPurdue University - Main Campus

University of WashingtonUniversity of Maryland

Georgia Institute of TechnologyUniversity of Pittsburgh

University of FloridaUniversity of North Carolina - Chapel Hill

University of WisconsinRutgers University

Ohio State UniversityUniversity of Kentucky

University of Minnesota

$34,937 $32,027 $31,872 $31,461 $31,022 $30,935

$30,006 $26,670

$25,946 $25,118

$24,367 $23,990 $23,870 $23,852 $23,744 $23,513 $23,059

$22,518 $22,251

$16,678 $15,293

Median: $23,990UK and Top 20 Institutions*

*Per the Top 20 Business Plan

Source: 2009-10 Survey of Tuition and Required Fees Summary - University of Virginia

Applications, Acceptances, and Enrollment – Week 32First-Time Freshmen

2004 2005 2006 2007 2008 2009 2010500

2,500

4,500

6,500

8,500

10,500

12,500

14,500

10,481 10,407 9,840 9,75410,561

11,592

13,225

8,226 8,071 8,3427,369

8,416 8,6629,203

692 680 702 776 699 753 783

Applications

Acceptances

Enrollments

Applications and Acceptances – Week 32Transfers

2004 2005 2006 2007 2008 2009 2010200

400

600

800

1,000

1,200

1,400

1,6001,427

1,3021,224

913

1,243 1,236

1,430

513

638 609

293

422477

635

Acceptances

Applications

Student Financial AssistanceIn FY 2009-10, 16,207 undergraduate students (84.5%) received some type of financial assistance.

• Federal - Pell Grants ($5,350 maximum FY 2009-10 – increasing to $5,500 maximum in FY 2010-11)

• State• Kentucky Educational Excellence Scholarships (KEES)

($2,500 maximum award)• College Access Program ($1,900 maximum award)

• Institutional Scholarships• Merit and need-based programs• Employee and family education programs

Institutional Scholarships General Funds

01-02 02-03 03-04 04-05 05-06 06-07 07-08 08-09 09-10$10

$20

$30

$40

$50

$60

$17.3 $19.5

$24.1

$28.2 $29.2

$39.0

$47.9

$50.7 $51.1

Original Budget (in millions)

FY 2010-11 Funding Sources - Operating

State Appropriations (1.42% budget cut) ($4,395,700)

Short-term Investment Income (2,337,500)

Other Income 748,200

Total Source Increment - Operating ($5,985,000)

FY 2010-11 Funding Gap - Operating

Total Fixed Costs Increases

($11,908,600)

Total Revenue Decreases (5,985,000)

Funding Gap – Operating ($17,893,600)

2010-11 Tuition and Mandatory Fees Schedule• January – April: Discussions with CPE President and Staff

• April 21: Campus Forum

• April 23: CPE sets tuition parameters

• April 27: UK Board of Trustees approves tuition/fees

• May 21: CPE reviews UK’s tuition/fees

• June 8: UK Board of Trustees approves 2010-11 Operating and Capital Budget, including program and course fees