B题-高等教育学费标准探讨

B题-高等教育学费标准探讨RICHARDG.RHODAExecutiveDirectorPHILBREDESENGovernorSTATEOFTENNESSEEHIGHEREDUCATIONCOMMISSIONPARKWAYTOWERS,SUITE1900NASHVILLE,TENNESSEE37243-0830(615)741-3605FAX:[phone]:RepresentativeCraigFitzhughSenatorDougHenryRepresentativeLesWinninghamSenatorJamieWoodsonFROM:RichardG.RhodaSUBJECT:THECTuitionModelDATE:December22,2021Chapter503ofthe2021PublicActs(2021-06AppropriationBill),providesthat:“TheTennesseeHigherEducationCommissionshall,inconjunctionwiththeTennesseeBoardofRegentsandtheUniversityofTennessee,coordinatethecreationofundergraduatetuitionmodelsforpublichighereducationinTennessee.ThemodelsshallincludeatleastafiveyearprojectionofpotentialundergraduatetuitionincreasesatpublicinstitutionsofhighereducationincludingTennesseeTechnologyCenters.Thesemodelsshallconsidertheimpactofundergraduatestudentenrollmentgrowth,theimpactofTennesseeEducationLotteryScholarship,need-basedfinancialaidprograms,anticipatedstateappropriations,estimatedmaintenanceandoperationalcostsandotherfixedcosts,salaryandbenefitandtechnologycosts,maintainingcompetitivenesswiththerespectiveinstitutions’peerinstitutions,aswellasotherpublicandprivateinstitutionsandanyotherrelevantfactors.Thisanalysisshallalsoincludeanevaluationofthegrowthinhighereducationcostsinrelationtotheconsumerpriceindex.ThisreportshallbecompletedbyDecember31,2021,andshallbesubmittedtotheChairsoftheHouseandSenateFinance,WaysandMeansandEducationCommittees.”TheTennesseeHigherEducationCommissionispleasedtorespondtothelegislativedirectivewiththeaccompanyingfiveyeartuitionmodel.Thisisadynamicmodelwhichusesactualdataandallowsformultiplescenariostobeandenrollment,aswellaspeerinstitutionrevenuepressuresandtotalrevenueneedsascalculatedinthefundingformula.Itshouldbenotedthatthereisnostandard,widelyacceptedapproachtotuitionmodeling.Infact,rarelyhavestatesundertakenthedevelopmentofasimilarmodelastheonepresentedhere.ThemodelrepresentsthecollectiveworkoftheTHEC,theUniversityofTennesseeandtheTennesseeBoardofRegents,withinputandassistancefromstaffoftheSouthernRegionEducationBoard(SREB)andtheStateHigherEducationExecutiveOfficers(SHEEO).Inthewayofcontext,thetuitionmodelwasdevelopedduringaperiodofchangeinthefinanciallandscapeinhighereducation.In2021,averagetuitionandfeesataTennesseepublicuniversity,communitycollegeandtechnologycenterwere$4,650,$2,393and$1,984respectively,andhadincreasedover60percentduringthelastfiveyears.Continuationbudgetsofstateappropriationswithnonewoperatingfundsfortwoconsecutiveyearsfollowedaninepercentbudgetreductionin2021-04.ThedeclineininflationadjustedappropriationsinrecentyearsproducedanenvironmentwhereTennesseeuniversitiesnowcollectmorerevenuefromstudentsthanfromthestate.Inspiteofrecenttuitionincreases,Tennesseeisstillamoderatefeestate,thoughfundingforneed-basedstudentfinancialaidiswellbelownationalaverages.Thetuitionmodeloffershighereducationandstategovernmentleadersatooltobetterunderstandtherelationshipbetweentuitionrevenueandstateappropriations.Italsoallowsfortheimpactofenrollmentgrowthandpeerinstitutionrevenuegrowthtobeconsidered.Themodelandotherconsiderationswillimpactannualtuitionrecommendations.Themodelisaplanningtoolthatilluminateshowthevariousfiscalfactorsimpactpotentialtuitiondecisions.Becauseitisdynamic,themodelallowsforimmediatefeedbackonarangeofscenariosandpotentialfiscalconditions.Updatedannually,itwillbeavaluableplanningtoolashighereducationcontinuestorespondtoachangingfiscallandscape.Theavailabilityofstudentfinancialaidisanimportantconsideration.Alongwithstateappropriationsandstudenttuition,financialaidcontributesgreatlytoaffordabilityofhighereducation.However,inthemostrecentdecade,thecriteriausedtodeterminestudenteligibilityhasbeguntoshiftfromstudents’financialneedtotheiracademicperformance.Tennesseeisreflectiveofthisnationaltrendduetothenewlotteryscholarshipprogram.Tennessee’sneed-basedstudentfinancialaidprogram,theTennesseeStudentAssistanceAward(TSAA),annuallyawardsapproximately$42millioninneedbasedaid.Becausethelotteryscholarshipprogramisprimarilymerit-based,theTSAAisthemajorprogramthataddressesstudentfinancialneedinTennessee.Astuitionratesincrease,fundingfortheTSAAprogrambecomescrucialtomaintainstudentaccess.Attachedaretwodocumentstosupplementthetuitionmodel.Firstisanarrativethatbrieflyexplainsthemodelmethodologyanddevelopment.ThissectionincludesadiscussionoftheConsumerPriceIndex,itsappropriatenessforhighereducation,andtheHigherEducationCostAdjustment,developedbySHEEO,thatisusedinthetuitionmodel.Alsoattachedisasampleoutputsummaryofthetuitionmodel.Thenumbersincludedinthisoutputareprovidedasanexample;aspecificscenariothatincludesestimatesforenrollmentgrowth,stateappropriationschanges,andpeerinstitutionrevenuegrowthcanbedeterminedbytheuser.WewouldliketothanktheAdvisoryCommitteewhichassistedinthemodeldevelopment.?BobAdams,ViceChancellorforBusinessandFinance,TBR?SylviaDavis,VicePresidentforAdministrationandFinance,UT?DavidGregory,ViceChancellorforAdministrat