<p><em>U.S. News</em> data show in-state <a href="https://www.usnews.com/education/best-colleges/paying-for-college/articles/2017-09-20/in-state-tuition-increases-sharply-at-some-public-schools">tuition prices among public national universities</a> grew by 68% over a 10-year period from 2008. That increase was more than the published tuition hikes among private national universities during that period. Experts say state schools have more room to increase tuition levels compared with their private counterparts, and finding a bargain price at the state level is becoming harder.</p>
<p>With higher tuition costs, more students are determining their college selection based on price. Approximately 40% of students turned down their first-choice college because of financial concerns, according to a <a href="https://www.eab.com/Blogs/Enrollment/2017/03/Why-Do-Students-Decline-Their-Dream-Schools">survey</a> by EAB.</p>
<p><strong>Tuition Setting at MCC</strong></p>
<p>Understanding the importance of keeping college affordable, MCC's tuition rate has historically ranked as one of the lowest of the 30 SUNY community colleges. For 2018-19, MCC tuition is the fifth lowest in the system. Ranking in the bottom quartile among its SUNY peers is intentional and results from a series of steps involved with setting the tuition rate each year. These include: Three-Part Funding Model and Enrollment Projections, Board of Trustees Budget Retreat, and Consultation with Key Stakeholders.</p>
<p><strong>Three-Part Funding Model and Enrollment Projections</strong></p>
<p>SUNY community colleges are supported primarily under a three-part funding model that provides for revenues from students, the local sponsor (in our case Monroe County) and the State of New York. As provided in Education Law, students are to provide 33% of net operating costs, Monroe County 26.7%, and NYS up to 40%. As conceived, these targets were to ensure that local and state appropriations are sufficient to support the community college mission. That is, student success is most assured when our open access mission is coupled with reasonable cost to our students. Unfortunately, since its inception the state has met its 40% funding target system-wide only once. In fact, since SUNY community college enrollments peaked in 2010-2011, the state's actual contribution has steadily declined. For 2017-18, the average state funding for all SUNY community colleges was only 26.1%, with MCC receiving just over 30% from the state. At the same time, local sponsors and students provided an average of 32.7% and 41.2% respectively of net costs, both well in excess of what the funding model dictates. The comparable student revenue (tuition and technology fees) share at MCC for 2017-18 approximated 49%. In short, as funding from the state continues to decline, it is our students who are often left to make up the shortfall. Thus, as we consider adjusting tuition rates, we begin with this three-part funding model and our expectations as to how it may, in practice, impact our students. Evaluating these expected funding streams begins with enrollment projections prepared by MCC's Office of Institutional Research (IR).</p>
<p>Each November, IR develops projections for full-time equivalent (FTE) students for both the current and the following fiscal years. Based on these projections and input from a cross-divisional team, the Budget Office generates various funding models or "options" that set forth possible mixes of funding by students, the local sponsor, and the state. Inherent in each option are assumptions related to student tuition and fees, proposed funding by the local sponsor, and the state aid rate. These options form the basis for building the following year's budget.</p>
<p><strong>Board of Trustees' Budget Retreat</strong></p>
<p>Beginning in fiscal year 2013, the College strengthened the budget planning process by initiating an annual budget retreat with the College's Board of Trustees. While designed to deepen the Board's understanding and involvement in budget development and resource allocation, its initial formation was driven by the desire for greater transparency and Trustee guidance on setting tuition rates. In addition to providing financial information on the state of the College and local/national enrollment and labor trends, tuition targets are examined in relation to (1) MCC's tuition ranking among its SUNY peers, and (2) a student's estimated direct cost of attendance.</p>
<p>As shown on the attached, Monroe's $4,380 full-time tuition rate for 2018-19 is tied for the fifth lowest among its peers. Perhaps more telling is the fact that several institutions are approaching or have already exceeded rates above $5,000, a trend that is likely to accelerate as system-wide enrollments and state aid continue to decline. One of MCC's general premises is that our tuition should remain below the SUNY average ($4,678 currently) with a strong preference to remain in the lower quartile. Early indications for 2020 show that the SUNY average could exceed $4,850. MCC's tuition will remain flat at $4,380, placing it 28th or third-lowest among our peer institutions.</p>
<p>A second standing premise is that available financial aid for the majority of our students must cover their direct cost of attendance. The direct cost of attendance is estimated at just over $6,300 for the 2019-20 academic year, including tuition ($4,380), books ($1,200), and fees ($722). While actual costs do vary, we are gratified that recent efforts to minimize book costs are yielding results. The College's Open Educational Resources (OER) program has provided students with over $2.2 million in book cost savings since the program began in fall 2015.</p>
<p>As a primary metric when evaluating any tuition adjustment, we expect that the direct cost of attendance next year will be more than covered by available Federal and state aid. Average financial aid awards are expected to exceed $7,400, consisting of Federal PELL and New York State Tuition Assistance Program (TAP) awards averaging $4,643 and $2,800 respectively. Beyond PELL and TAP, many of our students also receive scholarship support. For fiscal year 2017-18, the MCC Foundation provided nearly $1.4 million in scholarship aid to our students.</p>
<p>If needed to support indirect costs of attendance such as rent and living expenses, students may also avail themselves of low interest subsidized/unsubsidized loans under the Federal Title IV program. However, keeping overall costs as low as possible means that the majority of MCC students graduate without loans. Indeed, nearly 55% of students graduating in 2018 left MCC with no loans from their time at the College.</p>
<p>Considering all available financial support, approximately 59% of MCC's fall 2018 class received some form of financial aid, whether grants, scholarships, or loans. It is with this backdrop of national/local trends and key MCC data points that MCC's Board of Trustees provide input on student tuition and fee rates for the coming academic year.</p>
<p><strong>Consultation with Key Stakeholders</strong></p>
<p>In the event that a tuition or fee adjustment is recommended, the College consults with its key stakeholders, most particularly representatives for MCC's students as well as the local community.</p>
<p>The College maintains ongoing interaction with both the MCC Student Government Association (SGA) and the Downtown Campus Student Events and Governance Association (SEGA). Out of this relationship, executive boards for both organizations are engaged to discuss any proposed tuition and fee adjustments, providing College officials with their perspectives and concerns (if any). Serving in an advisory capacity, these boards may also choose to endorse the proposed action through passage of a formal resolution supporting the adjusted tuition or fee rate. For example, both student boards approved supporting resolutions for the adoption in 2019-20 of a $75 per term transportation fee to provide every student with a Universal Bus Pass, campus parking, and bike share options.</p>
<p>Beginning in April, the College conducts numerous budget advocacy meetings with Monroe County leaders and legislators. Through the discussions prompted by this legislative process, community leaders offer both critique and support for the proposed budget. When warranted, proposed tuition and fee adjustments are often vetted with particular scrutiny as County leaders seek (as do we) to keep MCC affordable for our students. The process culminates when Monroe County considers and votes on the College's budget at a meeting of its full Legislature in August of each year.</p>
<p><strong>MCC's Mission</strong></p>
<p>Keeping college affordable for MCC's students is a long-standing practice that is just as important, if not more so, than it was during MCC's early days as an institution. Among other practices, we accomplish this through the lens of the three-part funding model and enrollment projections, informed by our Board of Trustees, and vetted by MCC's student representatives and County officials. Access to an affordable education continues to be at the core of MCC's mission:</p>
<p><em>Monroe Community College, through access to affordable academic programs, leads excellence and innovation in higher education, inspires diverse students to transform their lives and communities, drives regional economic development, and builds global engagement and understanding.</em></p>

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MCC Daily Tribune

Setting Tuition

Paying for college is expensive and many families are feeling the pinch as tuition costs soar. Community colleges were originally designed as a lower cost alternative to higher priced private and Ivy League institutions. According to U.S. News data, the average cost for tuition and fees among national universities - private and public - has risen significantly since the late 1990s. According to a 2017 paper by the Center on Budget and Policy Priorities, state spending on public colleges and universities remains at a historic low since the 2007-2008 school year, coinciding with the Great Recession.

U.S. News data show in-state tuition prices among public national universities grew by 68% over a 10-year period from 2008. That increase was more than the published tuition hikes among private national universities during that period. Experts say state schools have more room to increase tuition levels compared with their private counterparts, and finding a bargain price at the state level is becoming harder.

With higher tuition costs, more students are determining their college selection based on price. Approximately 40% of students turned down their first-choice college because of financial concerns, according to a survey by EAB.

Tuition Setting at MCC

Understanding the importance of keeping college affordable, MCC's tuition rate has historically ranked as one of the lowest of the 30 SUNY community colleges. For 2018-19, MCC tuition is the fifth lowest in the system. Ranking in the bottom quartile among its SUNY peers is intentional and results from a series of steps involved with setting the tuition rate each year. These include: Three-Part Funding Model and Enrollment Projections, Board of Trustees Budget Retreat, and Consultation with Key Stakeholders.

Three-Part Funding Model and Enrollment Projections

SUNY community colleges are supported primarily under a three-part funding model that provides for revenues from students, the local sponsor (in our case Monroe County) and the State of New York. As provided in Education Law, students are to provide 33% of net operating costs, Monroe County 26.7%, and NYS up to 40%. As conceived, these targets were to ensure that local and state appropriations are sufficient to support the community college mission. That is, student success is most assured when our open access mission is coupled with reasonable cost to our students. Unfortunately, since its inception the state has met its 40% funding target system-wide only once. In fact, since SUNY community college enrollments peaked in 2010-2011, the state's actual contribution has steadily declined. For 2017-18, the average state funding for all SUNY community colleges was only 26.1%, with MCC receiving just over 30% from the state. At the same time, local sponsors and students provided an average of 32.7% and 41.2% respectively of net costs, both well in excess of what the funding model dictates. The comparable student revenue (tuition and technology fees) share at MCC for 2017-18 approximated 49%. In short, as funding from the state continues to decline, it is our students who are often left to make up the shortfall. Thus, as we consider adjusting tuition rates, we begin with this three-part funding model and our expectations as to how it may, in practice, impact our students. Evaluating these expected funding streams begins with enrollment projections prepared by MCC's Office of Institutional Research (IR).

Each November, IR develops projections for full-time equivalent (FTE) students for both the current and the following fiscal years. Based on these projections and input from a cross-divisional team, the Budget Office generates various funding models or "options" that set forth possible mixes of funding by students, the local sponsor, and the state. Inherent in each option are assumptions related to student tuition and fees, proposed funding by the local sponsor, and the state aid rate. These options form the basis for building the following year's budget.

Board of Trustees' Budget Retreat

Beginning in fiscal year 2013, the College strengthened the budget planning process by initiating an annual budget retreat with the College's Board of Trustees. While designed to deepen the Board's understanding and involvement in budget development and resource allocation, its initial formation was driven by the desire for greater transparency and Trustee guidance on setting tuition rates. In addition to providing financial information on the state of the College and local/national enrollment and labor trends, tuition targets are examined in relation to (1) MCC's tuition ranking among its SUNY peers, and (2) a student's estimated direct cost of attendance.

As shown on the attached, Monroe's $4,380 full-time tuition rate for 2018-19 is tied for the fifth lowest among its peers. Perhaps more telling is the fact that several institutions are approaching or have already exceeded rates above $5,000, a trend that is likely to accelerate as system-wide enrollments and state aid continue to decline. One of MCC's general premises is that our tuition should remain below the SUNY average ($4,678 currently) with a strong preference to remain in the lower quartile. Early indications for 2020 show that the SUNY average could exceed $4,850. MCC's tuition will remain flat at $4,380, placing it 28th or third-lowest among our peer institutions.

A second standing premise is that available financial aid for the majority of our students must cover their direct cost of attendance. The direct cost of attendance is estimated at just over $6,300 for the 2019-20 academic year, including tuition ($4,380), books ($1,200), and fees ($722). While actual costs do vary, we are gratified that recent efforts to minimize book costs are yielding results. The College's Open Educational Resources (OER) program has provided students with over $2.2 million in book cost savings since the program began in fall 2015.

As a primary metric when evaluating any tuition adjustment, we expect that the direct cost of attendance next year will be more than covered by available Federal and state aid. Average financial aid awards are expected to exceed $7,400, consisting of Federal PELL and New York State Tuition Assistance Program (TAP) awards averaging $4,643 and $2,800 respectively. Beyond PELL and TAP, many of our students also receive scholarship support. For fiscal year 2017-18, the MCC Foundation provided nearly $1.4 million in scholarship aid to our students.

If needed to support indirect costs of attendance such as rent and living expenses, students may also avail themselves of low interest subsidized/unsubsidized loans under the Federal Title IV program. However, keeping overall costs as low as possible means that the majority of MCC students graduate without loans. Indeed, nearly 55% of students graduating in 2018 left MCC with no loans from their time at the College.

Considering all available financial support, approximately 59% of MCC's fall 2018 class received some form of financial aid, whether grants, scholarships, or loans. It is with this backdrop of national/local trends and key MCC data points that MCC's Board of Trustees provide input on student tuition and fee rates for the coming academic year.

Consultation with Key Stakeholders

In the event that a tuition or fee adjustment is recommended, the College consults with its key stakeholders, most particularly representatives for MCC's students as well as the local community.

The College maintains ongoing interaction with both the MCC Student Government Association (SGA) and the Downtown Campus Student Events and Governance Association (SEGA). Out of this relationship, executive boards for both organizations are engaged to discuss any proposed tuition and fee adjustments, providing College officials with their perspectives and concerns (if any). Serving in an advisory capacity, these boards may also choose to endorse the proposed action through passage of a formal resolution supporting the adjusted tuition or fee rate. For example, both student boards approved supporting resolutions for the adoption in 2019-20 of a $75 per term transportation fee to provide every student with a Universal Bus Pass, campus parking, and bike share options.

Beginning in April, the College conducts numerous budget advocacy meetings with Monroe County leaders and legislators. Through the discussions prompted by this legislative process, community leaders offer both critique and support for the proposed budget. When warranted, proposed tuition and fee adjustments are often vetted with particular scrutiny as County leaders seek (as do we) to keep MCC affordable for our students. The process culminates when Monroe County considers and votes on the College's budget at a meeting of its full Legislature in August of each year.

MCC's Mission

Keeping college affordable for MCC's students is a long-standing practice that is just as important, if not more so, than it was during MCC's early days as an institution. Among other practices, we accomplish this through the lens of the three-part funding model and enrollment projections, informed by our Board of Trustees, and vetted by MCC's student representatives and County officials. Access to an affordable education continues to be at the core of MCC's mission:

Monroe Community College, through access to affordable academic programs, leads excellence and innovation in higher education, inspires diverse students to transform their lives and communities, drives regional economic development, and builds global engagement and understanding.

Attached Files:
Tuition and Fees.jpg

Hezekiah Simmons
Administrative Services
05/23/2019