Board of Trustees Public Meeting April 25, 2017 0
Statement of Principles: Tuition and Fees Introduction P.L. 18A:64-1 et seq., the Higher Education Restructuring Act of 1994, gave significant new responsibilities to Boards of Trustees. Among them are: ⁻ To set tuition and fees; however, prior to the date of the adoption of a tuition or fee schedule or an overall institutional budget, and with reasonable notice thereof, the governing board shall conduct a public hearing at such times and places as will provide those members of the college community who wish to testify with an opportunity to be heard. ⁻ The hearing will be held at The College of New Jersey, and will be open to the general public. ⁻ Mindful of their statutory responsibility, the Trustees offer the following statement to be circulated as part of the notice of the annual hearing and to be read at the beginning of each hearing. February 23, 1995 1
Statement of Principles: Tuition and Fees Principles The cost of delivering a quality, cost effective undergraduate education at The College of New Jersey is the central issue in establishing tuition and fees. That cost is defined annually. The rationale for use of public funds in support of higher education is that higher education exists primarily to serve the public good. The Trustees have the responsibility to provide vigorous advocacy for state support and to rigorously review institutional expenditures so that they may certify the cost- effective implementation of the college’s mission in service to the citizens of New Jersey. Students are required to share in the cost of higher education because it confers a personal benefit. However, the Trustees recognize that the public good is not served if the cost of attending The College of New Jersey bars access, and pledge that state and federal financial aid, combined with institutional resources, will be managed to ensure access. February 23, 1995 2
Statement of Principles: Tuition and Fees Conclusion Thus, when determining tuition and fees, the Trustees strike a balance between what students pay, and what the state and federal governments pay. That balance must take into account the finite costs of a quality education and that concomitantly, when, after rigorous internal cost control, state support decreases, tuition must increase if quality is to be preserved. 3
CSPP Budget Decision-Making Principles & Process The budget planning and development will be guided by the following Board of Trustees approved resource allocation principles in order of importance: 1. Preserve the health, safety and security of our students, faculty, staff and visitors. 2. Preserve the integrity and excellence of the educational programs and services through which the College realizes its mission. 3. Preserve the institutional integrity of the College, including our obligations to staff, faculty, and students (e.g., scholarships). In implementing these principles, decisions will also be guided by the institutional strategic priorities, in particular, the need to preserve and enhance the College's long ‐ term financial well ‐ being. Updated April 9, 2008 4
Governor’s FY2018 Higher Education Proposed Budget Governor Christie’s proposed budget includes level funding of $2.2 billion for higher education The FY2018 budget provides overall funding in direct aid for the state’s senior public institutions of higher education at the same levels as FY2017 ($699.5 million ). TCNJ’s base appropriations = $27.18 million. However, the Senior Publics net fringe benefits funded by the State is projected to increase to $728.7 million , which represents a 5.1% or $35.1 million increase. Operating aid to county colleges will also continue at the same levels ($134.1 million ) as FY2017, but their fringe benefits will increase by $1.9 million or 3.7%. The budget will provide $1.0 million under the Independent College and University Assistance Act similar to FY2017. 5
Governor’s FY2018 Higher Education Proposed Budget Student Aid Programs Tuition Aid Grant (TAG) funding will be increased by $15.7 million over FY2017 level, to a total of $419.4 million . The Educational Opportunity Fund will be reduce by $3.6 million or 8.4%, to a total of $38.8 million in FY2018 according to the Budget Summary Document. High School to College Programs The Governor’s Urban Scholarship program will add a sixth class and will now support an estimated 600 scholars from targeted school districts. Funding will continue for the College Readiness Now at $1 million in fiscal 2018 to help students prepare for college level course work before they graduate high school. 6
State Appropriations per FTE Student $7,950 $7,841 $7,754 $7,750 $7,691 $7,550 $7,538 $7,350 $7,150 $6,950 $6,750 $6,550 $6,350 FY 2013 FY 2014 FY 2015 FY 2016 Column1 FY 2013 FY 2014 FY 2015 FY 2016 Base Appropriation $ 29,317,000 $ 29,317,000 $ 29,317,000 $ 27,177,000 Fringe Appropriation 23,994,000 23,762,000 24,530,000 25,262,000 Total State Appropriations $ 53,311,000 $ 53,079,000 $ 53,847,000 $ 52,439,000 Total FTE Enrollment 6,799 6,901 6,944 6,957 State Appropriations per FTE $ 7,841 $ 7,691 $ 7,754 $ 7,538 7
State Appropriations and Tuition & Fees The following graph illustrates state appropriations and tuition & fees as a percentage of the College’s education & general operating budget: $7,308 $6,836 $6,067 $7,186 $7,075 3.9% 3.8% 100% 3.6% 2.5% 4.1% 90% 80% 70% $109,455 $122,247 $112,141 $115,813 $118,656 64.8% 64.5% 65.1% 65.5% 66.7% 60% 50% 40% 30% $23,994 $23,762 $24,530 $32,732 $25,262 14.2% 13.8% 13.9% 17.3% 14.2% 20% $29,317 $29,317 $29,317 $27,177 $27,177 10% 17.4% 17.0% 16.6% 15.3% 14.3% 0% FY 2013 FY 2014 FY2015 FY 2016 FY2017 Budget Base Appropriation Fringe Appropriation Tuition & Fees Other *Other includes investment income and TCNJ Foundation support. 8
Fiscal Year 2018 Key Budget Challenges Below are some of the key budget challenges that TCNJ will need to address for Fiscal Year 2018: Implement a comprehensive plan to address the negative enrollment trend in the graduate programs. Price sensitivity and the potential cap on tuition increase by New Jersey will pose an even greater challenge to T CNJ’s Strategic Plan priority of achieving a Sustainable Financial Model. The State’s operating support to TCNJ has been flat or declined over the past few years and with its continuing fiscal challenges as evidenced by its bond ratings downgrades, this trend is likely to persist in the coming years. Significant increase in maintenance operating costs of $1.5M due to the new STEM building and Brower Student Center renovation. The need to allocate additional resources of $1M to implement the College’s Strategic Plan. Additional project requests of approximately $4.3M for IT and Facilities remain unfunded. Limited funding available ($0.47M ) to support requests totaling $0.76M for academic and Fitness Center equipment. Growth by Substitution : Develop a comprehensive plan to reallocate budgets to institutional priorities that will strengthen the College’s overall revenue base over time. 9
Budget Planning Strategies 1. Implement a comprehensive plan for departments to grow enrollment in targeted graduate and undergraduate programs. 2. Address the continued demand for additional investment in information technology, facilities and academic equipment. 3. Allocate additional funding to address the significant increase in facilities operating costs due to the new STEM building and BSC renovation. 4. Identify sustainable revenue enhancements and cost-containment initiatives. 5. Budget tuition and fee revenues at 99.5% of the projected total to provide budgetary flexibility in case the enrollment goals are not achieved. 6. Develop contingency plans for the potential cap on tuition and fees increase (2% or the change in Consumer Price Index (CPI), whichever is less based on the State of New Jersey Assembly Bill No. 4680, that was introduced on March 16, 2017. Note: As of June 2016, the change in CPI was 1.0% for the New York-Northern New Jersey as reported by the Bureau of Labor Statistics, U.S. Department of Labor. 10
Linkage to the College’s Strategic Plan – Priority V 11
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