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Tuition Advisory Council�

April 5, 2023 Meeting

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Introduction

What we know:

Governor’s Recommended Budget (GRB) presented PUSF @ $933m
Ways and Means (W&M) co-chairs presented PUSF @ $947m
ASSOU student incidental and green tag fee recommendations
Proposed Housing and meal plan rate increases

What we do not know:

Final PUSF funding level (which drives state allocations)
Sports Lottery funding
Status of $15m ‘earmark’ for Technical and Regional Univ (TRU)—in GRB, not W&M
Fall enrollment (student credit hours)

Task today:

Review updated pro forma (and assumptions)
Look at ASSOU and Housing current fee recommendations; and
Decide on Tuition rate increases (for each category)

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Analysis of State PUSF funding allocation…options and outcomes

Ways and Means Co-chairs’ budget has PUSF at $947,746,033

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Budget Forecast and Review of Pro Forma Including �Proposed Realignment Impacts

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Revenue Assumptions, FY 24

Conservative State Revenue allocation: $933m at GRB – maintained this assumption; W&M co-chairs’ budget ~ 1.5% increase
Tuition Revenue modeled at 3% increase and enrollment (SCH) down slightly
Miscellaneous Revenue up to $3.3m (due to Ground Lease ‘reserve’ transfer into E&G; strong in FY 24, then levels out)
Last increment of Federal support ($2.9m) shown

Not considered (one-time monies)

Congressionally Directed Spending - $3.3m ask for SIS
$15m earmark for TRUs (uncertain outcome / allocation)
$3m ask for Mental Health Center of Excellence

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Cost Assumptions, FY 24

Refined Cost Management recurring savings (about 82 FTE) projection… “time activated the plan”

Plan ties to ~ $9m in recurring savings

S&S expense pressure…burning hot due to inflation and early retirement (watch item)…modeling growth at 2.5% (very aggressive, less than inflation)

Forecast (update) transfers from E&G, based on changes in Athletics (less cost) and Housing reorganization.
Will monitor cost relationship with Physical Plant Fund / E&G and Auxiliaries (Housing and Athletics)

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(as of 4/3/23)

Steve to Update

Steve: As of 4-3-2023, based on 3% cross the board

tuition increases.

Will update further after TAC finalizes recommendation

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Mandatory Student Incidental Fees Recommendation for Academic Year��

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Incidental Fee Setting Roadmap

Summary Recommendation

Student Incidental Fee
Green Tag Fee
Student Recreation Center Fee

President’s Recommendation

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AY2023-24 TAC & SFC �Mandatory Fee Recommendations

ASSOU recommends:

Steve to Update

Steve: Based on the latest updated information

4-3-2023

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Enrollment Fee Setting Roadmap

Summary of the Tuition Advisory Council’s Recommendation

Building Fee Data and Discussion
Health Fee Data and Discussion
Oregon Public University (OPU) Fee Comparators (for context and price sensitivity)
Total Tuition and Fee Cost Impact to Students

President’s Enrollment Fee Recommendation
Matriculation Fee Data and Discussion
President’s Matriculation Fee Recommendation
Housing and Dining Fee – for information only

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Mandatory Enrollment Fees

Established by ORS 352.102

oregonlaws.org/ors/352.102�

Building Deb-Service & Technology Infrastructure Fee

Recommended by Administration to the President
Recommended by the President to the Governing Board
Adopted by the Governing Board – included in HECC review/approval�

Health Center Fee

Recommended by the Director, Student Health and Wellness Center to the President
Recommended by the President to the Governing Board
Adopted by the Governing Board – included in HECC review/approval�

Proposed fee schedules as recommended by TAC on April 5^th, 2023

Steve to Update

Steve: Table updated with most recent info,

Pending TAC final confirmation on the 5^th

4-3-2023

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AY2023-24 Tuition and Fee Impact to�Resident Undergraduate Students

Steve to Update

Steve: based on status as of

4-3-2023…Tuition 3% rounded to nearest whole dollar, will update

upon final recommendation

From TAC on 4-5-23

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One-time Fees - Matriculation

Assessed only once to new undergrads

Often deferred until fully enrolled/taking courses

Designed to reduce (not eliminate) other student administrative fees that used to exist:

Orientation, Scheduling, transcripts, degree applications, re-enrollment, etc.
Also supports 1^st year interest groups and learning�

Fee was approved to be raised up to $350 last year (from $300), but the fee was maintained at $300 during 2022-2023.

�Recommendation:

Begin assessing the Matriculation Fee at $350 going into 2023-2024, to support cost growth in areas supported by the fee.

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Housing & Dining Rates Update

President’s Enrollment Fee Recommendation

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Housing & Dining Rates Updates�-For informational purposes

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Tuition rate setting (hyperlink to analysis)

Steve Larvick prepared an updated version of the "Tuition Changes at Different Rate Levels" document

It has been saved in the Google Drive folder as well

This replaces the Excel spreadsheet by the same name, which had some links that got broken in Google Drive.
This version also reflects some slight changes due to labor updates continuing as we work through the cost management plan

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President’s Recommendation to Board

Steve to Update

Steve: 4-3-2023…Updated pending TAC recommendation

Set at 3% (rounded to nearest whole dollar

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UG Resident Cost of Attendance� for Academic Year 2023-24

Steve to Update

Steve: 4-3-2023 Updated prior to

TAC final recommendation.

Rates set at 3% across the board,

Rounded to nearest whole dollar.

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Questions / Comments

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Backup slides from last year �(for reference only)

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Historic SCH Rate Comparison �*Note: UG Resident – Incoming Cohorts Only

Source: HECC | graphs annually compiled by SOU Office of Budget & Planning; new cohorts only

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OPU Tuition Rate % Changes 2011 – 2021

Source: HECC | graphs annually compiled by SOU Office of Budget & Planning; new cohorts only

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UG Res Tuition Rate Per SCH

Source: SOU Factbooks (Graphs compiled by Budget & Planning)

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Enrollment Fees - Building

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Enrollment Fees - Building

Principally for debt service on bonds of non-instructional buildings that don’t have dedicated revenue outside of incidental fee; i.e. Student Union

Excluding those that have separate revenue for debt-services

Housing, Dining, SRC, others�

Additional $15 component added in 2019 to address necessary IT infrastructure upgrades in buildings�
Debt service piece will not be able to satisfy required payments by 2032;

Enrollment decline means fewer dollars supporting the reserves.

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Enrollment Fees - Transparency

Recommendation to split into 2 Distinct Fees:

Building Debt-Service Fee: $50/term
Technology Infrastructure Fee: $25/term�
Total Increase from current ‘Building’ fee: $15/term

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Enrollment Fees - Health

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Enrollment Fees - Health

Pandemic created extra utilization of Health Areas

Testing and contact tracing increased workload and the SHWC often had to call in additional help

On-call nurse, overtime work for providers, etc.�

Exceptional level of service during the pandemic, but unrealistic to continue at that enhanced rate

Recommendations:

Current Service Level Expectation: $150 🡪 $220

Reduced Service Level Post Pandemic: $150 🡪 $175

The SHWC has been integral in the development of the covid policies for campus. The ED’s relationships with Jackson County Public Health has provided a lot of guidance and services for students and staff. She attends the weekly Medical Advisory Group and brings back important information about covid. She also was able to get the covid vaccine quickly from public health and we were able to vaccinate staff and students. Also, through these relationships she was able to get connected with the state and receive free covid tests which they have tested many students over the past 2 years (these tests were shared with Athletics so they could meet their testing requirements). She also updates the community on the

activities of SOU which is a very large community.

SHWC has always provided vaccines and testing to students but the addition of covid vaccine, testing

and contact tracing increased their workload and we often had to call in additional help to provide this

service (on-call nurse, nurses & providers worked on their days off, etc.)

Her relationship with the county has also been very beneficial to our students with mental health needs.

She has a relationship with Asante who have given her access to their electronic health records so that if

we have a student who goes to the hospital she can view their notes and help plan their return to

campus. She also has a great relationship with the crisis team who she can call for additional mental

health assessments and has ben able to facilitate students going to the hospital when they are unable to

do it on their own.

7/1/21-2/24/22 7/1/20-6/30/21

# of Medical Appts. 2,403 2,921

# of Medial Appts that are 267 391

MH related (11% of medical appts are MH) (13% of medical appts are MH)

# of Psychiatric MH appts 267 410

# of MH visits 1,200 2,106

Covid Tests (rapid) 725 772

Covid Vaccines 241 753

Mandatory PCR tests for students, SOU employees and Aladdin employees:

We contracted with WVT labs and order the test through them, had to administer the test, mail them to

Eugene and monitor the test results. we did 2,010 tests from October 18 th to February 25 th .

This required creating and managing several spreadsheets to monitor their compliance with the testing

policy.

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OPU Mandatory Fees AY 2021-22 (Enrollment / Incidental)

Source: HECC – annually compiled by SOU Office of Budget & Planning; new cohorts only

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Composite Tuition And Fees Comparison�(Three terms, 15 SCH/term, all mandatory fees)

Source: HECC & others – annually compiled by SOU Office of Budget & Planning; new student cohorts only

Reminder

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Composite Tuition And Fees Comparison�(Three terms, 15 SCH/term, all mandatory fees)

Source: HECC & others – annually compiled by SOU Office of Budget & Planning; new student cohorts only

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Established by ORS 352.102

oregonlaws.org/ors/352.102�

Matriculation Fee

Fee used for on-boarding new students – one-time fee
Recommended by TAC to the President
Recommended by the President to the Governing Board
Adopted by the Governing Board�

Health Center Fee

Recommended by the Director, Student Health and Wellness Center to the President
Recommended by the President to the Governing Board
Adopted by the Governing Board – included in HECC review/approval�

Building Fee

Rec ommended by Administration to the President
Recommended by the President to the Governing Board
Adopted by the Governing Board – included in HECC review/approval

Mandatory Enrollment Fees

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Established by ORS 352.105

oregonlaws.org/ors/352.105�

Student Incidental Fee (including Green Tag)

Recommended by ASSOU to the President
Recommended by the President to the Governing Board
Adopted by the Governing Board – not included in HECC review/approval�

Student Recreation Center Fee

Recommended by ASSOU to the President
Recommended by the President to the Governing Board
Adopted by the Governing Board – not included in HECC review/approval

What About Housing?

Housing Room/Meal rates

Set by University Administration, not included in HECC review/approval

TAC DOES NOT WORK ON THESE!

Mandatory Incidental Fees

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Financial Sustainability�“All Hands on Deck”��Dr Rick Bailey, Greg Perkinson and Josh Lovern

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Strategic Direction 5 (SD5)

Financial Sustainability

Definition: SOU will maintain financial stability and invest for institutional vitality.
Key to our success: Revenues greater than or equal to Cost

R > C

Road Map

Revenue Forecast
Cost (Status of Expense elements)
Pro Forma

Strategic Direction V: SOU will maintain financial stability and invest for institutional vitality.

Goal One: SOU will develop, implement and monitor a comprehensive strategic enrollment management plan.

Goal Two: SOU will develop key performance indicators to incentivize, monitor, and reward improvements, innovations or efficiencies.

Goal Three: SOU will enhance opportunities to leverage its existing assets to increase revenue.

Goal Four: SOU will invest in opportunities that generate additional gifts, grants, and sponsorships from external sources.

Goal Five: SOU will develop and implement cost management strategies that honor current Collective Bargaining Agreements, while working with key stakeholders to "bend the cost curve" now, and in future years

https://sou.edu/strategic-planning/the-sou-plan/

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Pro Forma Forecast Model Variables

Revenues

State Funding – Public University Support Fund (PUSF)

Conservative SSCM Model with final HECC updates
Any one-time monies still in the pipeline not considered (until approved)

Tuition revenue – based on current enrollment forecast
Miscellaneous revenue: history and current context �

Expenses

Labor costs modeled based on Cost Management plan
Direct & indirect labor escalated
Supplies and Services (S&S) based on inflation or known cost escalation
And, Bad-debt write-offs�

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Weekly Executive Enrollment Reports�(as of 3/7/23)

Winter 2023 Enrollment Report: As of 8 weeks after the start of term, Winter headcount is 5,244, up 224 from the same time last year (4.5%). FTE is 3,284, which is down 1 (0%). Non-admitted student headcount is 2,037, up 29.7% over last Winter term at the same point in time.

Spring 2023 Enrollment Report: As of 4 weeks before the start of term, Spring headcount is 2,620, down 124 from the same time last year (-4.5%). Continuing students is at 2,448, down 36 (1.4%) over Spring 2022 at the same point in time.�
Fall 2023 Enrollment Report: As of 29 weeks prior to the start of Fall term, total Fall 23 admission applications total 2,333 or 16.4% more than last year at this same point in time. Of the 1,922 First-year applicants, 332 have been admitted and have confirmed to attend which is 69% more than last year at 29 weeks before the start of the term.�

Any reports referenced above have also been posted to the SOU Executive Enrollment Data website. The site also includes other enrollment reports, admission reports, completion reports, and a variety of graphics displaying categories used by the Student Success and Completions Model (SSCM) to calculate SOU's annual state appropriation. Also posted to the site are charts with longitudinal student headcounts, FTE, fee paying categories, and retention & graduation rates. For additional enrollment information visit the SOU Institutional Research website�

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Winter Enrollment�(as of 3/7/2023)

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Spring 2023 Enrollment Snapshot �(as of 3/7/23)

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Fall SCH Projections AY22 – AY27

Alt Model Range: 42,119 – 51,204

Pro forma Weighted SCH Model: 46,105

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E&G Budget with �Forecast to Complete��

Tuition Revenue “softening” ($1.4m less than forecasted)
Miscellaneous Revenue up $300k, due to Ground Lease ‘reserve’ transfer into E&G

Total labor expenses coming in $3.7m under budget (good indicator we’ll achieve $3.6m cost reduction target)
S&S expense pressure…burning hot due to inflation and adjusted to include early retirement (watch item)
$3.3M transferred into E&G

Glide slope to close with projected $5.16m EFB (ties to 8.15% KPI and roughly 1 month of operations)

�NACUBO recommendation is 40%

OR Department of Treasury requires 30 days of available cash on hand

Steve to Update

$3.3m of federal relief funds were transferred to Education and General fund (E&G) in July (this shows up as a "transfer-in" from the federal fund)

With federal funds in E&G; cost reduction targets; additional housing transfer and a slight decrease in tuition revenue projection, anticipate we'll still come in just over $5.2m ending fund balance (EFB) (around 8.2% of EFB metric)

Cash (all funds): not meeting ‘target’, due to slight decrease in enrollment projection. In December, SOU received $3m from reserve account held by Collegiate Housing Foundation (CHF)—there is another $1.4m in reserves

Occupancy in Housing is strong (exceeding projections)

Student Credit Hours: Enrollment declines continue, but are ‘variable’

Expenses: Compared to budget, total labor expenses are down $2.9m as part of FY23 cost reduction measures. In summary:

Direct labor costs (YTD) expected to decrease $1.8m;

OPE is down by about $1m; and

Supplies and Services spending is up, based on inflationary pressures

�