Open Hearing on Tuition and Fees - Rutgers University...Financial Aid ~9% Providing access through...
Transcript of Open Hearing on Tuition and Fees - Rutgers University...Financial Aid ~9% Providing access through...
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
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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
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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%
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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
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FY 2020 Tuition and Fees
2.2%
-2%
-1%
0%
1%
2%
3%
4%
5%
6%
7%
Virg
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Ore
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Texa
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UC
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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
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Penn
Sta
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UC
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UC
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C-Ir
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ech
Col
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Was
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New Brunswick & Comparators - AAU Publics
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0.0%
0.5%
1.0%
1.5%
2.0%
2.5%
3.0%
3.5%
4.0%
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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
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Newark & Comparators
$0
$2,500
$5,000
$7,500
$10,000
$12,500
$15,000 Newark & Comparators
FY 2020 Tuition and Fees
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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
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Camden & Comparators
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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
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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
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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
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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 *
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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.
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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
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Key Challenge
How does RUTGERS remain
ACCESSIBLEAFFORDABLE HIGH QUALITY
with a great ROI
&
Balanced Budget?
Looking Forward
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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.