FY 07 Tuition Rates
January 12, 2006
Mayor William W. Bunten
215 East Seventh Street, Room 352
Topeka KS 66603
Dear Mayor Bunten:
I would encourage you to watch very carefully the Washburn University FY07 budget process that is underway. At the most recent Budget and Finance Committee meeting, time was spent on historical data regarding enrollment, tuition rates, and salary comparisons, with no discussion regarding the strategic priorities and continuing costs.
There was some brief discussion regarding the proposed FY07 tuition rates at the meeting. The handout in your packet included scenarios for tuition increases ranging from 3% to 7%, or $5 - $11 per credit hour. Based upon (2)-15 hour semesters, students would be expected to pay from $150 - $330 more per year.
In the Fall, 2006, a fourth year senior will be paying from $1,000 to $1,200 more per year than paid in the freshman year, or a tuition increase of 25 - 30 % over the past four years. The flat Fall, 2005 enrollment should serve as a warning when considering the Fall, 2006 tuition rates.
You asked the question regarding tuition rates needed in relation to the costs associated with offering the education. Based, in part, upon the information provided to you at the meeting, I would propose the following FY07 budget scenario:
| Revenues: | 3% tuition increase | 812,500 |
| Additional sales tax | 1,876,400 |
|
| State grant | no info |
|
| Revenue Subtotal: | $2,688,900 |
|
| Expenditures: | Salaries: | |
| 3% salary pool | $1,348,500 |
|
| 1% faculty salary enhancement | 169,500 |
|
| Ongoing Costs: | ||
| Utilities | 150,000 |
|
| Software/Internet | 50,000 |
|
| Library | 60,000 |
|
| Scholarships | 50,000 |
|
| Academic Initiatives: | ||
| Transformational Experience | 250,000 |
|
| Expenditure Subtotal: | $2,078,000 |
|
| Operating Surplus: | $ 610,900 |
This projected $600,000 surplus would be in addition to the $1.5 million operating surplus already included in the base FY06 budget as reported in the most recent public budget documents, prior to funds being transferred to and from other funds.
- FY 04 - $1.1 million - (actual surplus)
- FY 05 - $1.9 million - (estimated surplus)
- FY 06 - $1.5 million - (proposed surplus)
So, it would appear that a 3% tuition increase would be sufficient.
In FY05, almost $8.7 million was transferred from the general operating fund to other funds. This money was transferred as follows:
$4,700,000 |
Stoffer Project | ||
1,300,000 |
MacVicar Property Project | ||
1,240,000 |
School of Law Renovation | ||
476,744 |
Miscellaneous Annual Transfers | ||
360,000 |
Classroom Renovations | ||
200,000 |
Additional electronic technology funding | ||
171,000 |
ODS Project | ||
60,000 |
Lee Arena Scoreboard Loan | ||
59,000 |
Planetarium Project | ||
52,500 |
Moore Bowl Track Project | ||
32,484 |
TMA Project | ||
25,038 |
Parking Transfer | ||
$8,676,766 |
Total FY05 Transfers from General Fund |
These figures indicate that the Shawnee County sales tax dollars provide a tremendous resource for Washburn University that is not available to other institutions of higher education. Please keep in mind that one-third of the student population is part-time and not eligible for scholarship and other financial aid. I would encourage you to maintain an affordable tuition rate for the taxpayers of this community.
Sincerely,
Mary Lou Herring
cc: Washburn University Student Government Representatives