RD147 - Annual Report on the Changes in Tuition and Fees at State-Supported Colleges and Universities


Executive Summary:
The 2007 General Assembly provided $81.7 million in additional general fund support to higher education in 2007-08. This funding is in addition to the $574.1 million originally appropriated in the 2006-08 biennium to address the chronic underfunding of Virginia’s world-class system of higher education and to offset rising tuition costs.

By statute, each institution’s governing board of visitors has the authority to set tuition and fee rates. However, the Governor and the General Assembly frequently establish explicit or implicit tuition policies and goals for the state. Between 1994 and 2004, tuition and mandatory educational and general (E&G) fees for in-state undergraduates were, at various times, capped, frozen, and reduced. In 2004-05, the General Assembly returned authority to the boards of visitors to set tuition charges at levels they deem appropriate for all in-state student groups based on, but not limited to, competitive market rates. However, the policy provided that the total revenue generated by the collection of tuition and fees from all students must be within the nongeneral fund appropriation for educational and general programs.

In an effort to ensure more moderate tuition increases for the 2007-08 academic year, the 2007 General Assembly established the Higher Education Tuition Incentive Fund. Under the provisions of the Fund, a total of $7.2 million in general fund shall be granted to public colleges and universities that limit the increase of tuition and mandatory E&G fees for in-state undergraduate students to no more than 6% for the 2007-08 academic year. However, institutions can exceed the 6% limit (up to the tuition increase rate in their six-year plan) if the additional revenue is used solely to increase student financial aid for in-state undergraduates. As a result, next year, tuition and mandatory E&G fees for in-state undergraduate students will increase by 6.3% on average. These charges increased by about 10% in 2006-07. Tuition and all mandatory fees, including both educational and general and non-educational and general fees, will increase by just under 7% in 2007-08, compared to an increase of just over 9% in 2006-07.

This report, focusing on tuition and fees for in-state undergraduates, provides a summary of: 1) board-approved tuition and fee increases for the 2007-08 academic year; 2) tuition and fee trends in Virginia over the past 25 years; 3) the cost-sharing relationship between the state and students; and 4) trends in tuition increases nationally. Additionally, a comparison of planned and actual tuition increases is provided. Comparisons of changes in tuition and fees for other student groups, including in-state graduate, out-of-state undergraduate, out-of-state graduate, in-state first professional, and out-of-state first professional, are provided in the appendices.

In order to assess trends in tuition and fees, it is important to understand higher education pricing. A student planning to attend a public college or university in Virginia can expect to pay the charges defined below:

1. Tuition and Mandatory E&G Fees: Mandatory student charges used to support instruction and related education activities included in the Education SCHEV 2007-08 Tuition and Fee Report 1 July 2007 and General (E&G) program. E&G subprograms include instruction, research and public service, academic support, student services, institutional support, and the operation and maintenance of physical plants.

2. Mandatory Non-E&G Fees: Mandatory student charges used to support non-instructional activities such as student health services, athletics, recreational activities, campus transportation, and capital debt service.

3. Tuition and All Fees: Sum of tuition, mandatory E&G fees, and mandatory non-E&G fees.

4. Room and Board: Optional charges used to support the dormitory and dining functions for students choosing to live on campus. Students living off campus are exempt from these charges.

5. Total Cost: The total cost to students and parents – absent student financial aid. It includes the sum of tuition, all mandatory fees, and room and board.