Association for Institutional Research Supporting quality data and decisions for higher education. Professional Development, Informational Resources & Networking Tuition Revenues and Enrollment Demand: The Case of (original) (raw)
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2012
This paper details our experience with successfully increasing tuition revenues at Southern Utah University and provides a case study in how economic research and the politics of tuition policy combined to increase university revenue with stakeholder buy-in. Our success was based on three key factors: (a) we had a key administrator who advocated economic modeling and a positive basis for tuition policy; (b) we obtained empirical evidence of the effects of the proposed tuition increase by estimating an enrollment demand model; and (c) we were able to obtain stakeholder buy-in. Following the largest tuition increase in over 30 years, enrollment growth has remained strong and revenues have increased.
Pricing the Flagships: The Politics of Tuition Setting at Public Research Universities
The dramatic recent rises in public-college tuition levels have been much discussed but rarely examined systematically. What political, socioeconomic, and structural factors might drive one state to adopt rates far higher or lower than others? For example, why might tuition levels in South Carolina institutions be twice as high as levels in North Carolina's nationally regarded university system? This analysis models tuition setting with panel data for 162 public research universities across 49 states over the period 1984 to 2002. Results of the fixed-effects regression analyses suggest that population and postsecondary-enrollment patterns, proximal economic conditions, state appropriations and aid policies, and university governance arrangements each affect tuition levels in largely expected ways. Importantly, however, the results also indicate an important role for political factors. Notably, the analysis reveals that, in the context of a variety of controls for confounding factors, higher levels of minority representation in state legislatures are associated with lower levels of tuition. These results highlight the power of multiple forces in determining postsecondary tuition levels.
1990
This report describes the cost of nonprofit undergraduate collegiate education, how that cost has grown throughout the 1980s, and reasons for increases in college costs. The study analyzed mu3tiple data sources to determine that callege tuition growth has outpaced general price inflation since about 1980, but the American public believes that the cost of attending college is much higher than it actually is. Beginning in 1980, the proportion of family income needed to pay tui'cion increased. Between fall 1980 and fall 1987, the amount of student financial aid provided by all sources increased 7% faster than inflation, and students increased their reliance on loans. Academic expenditures did not increase as rFridly as overall expenditures, while administrative expenditures went up much faster. Between fall 1975 and fall 1985 faculty salaries increased by 87% in real dollars. Differing rates of enrollment growth greatly impacted per-student expenditures. Between 1975 and 1985, tuition and fee revenues made up a larger proportion of overall revenues. Analysis of the 100 most expensive private institutions and a small number of prestigious public institutions found that each type spent, on average, more than twice as much money per student than the average institution in its respective sector. Includes 72 references. (JDD)
Approaches to Managing Costs in American Higher Education
American Higher Education (AHE) is at a critical juncture. There is an increasing trend of closure or merger of smaller institutions being overburdened with debt servicing and increasing operating costs. The present cost and revenue troubles in AHE are due to mismanagement of costs and applications of traditional accounting systems. Issues discussed in this paper are related to tuition increase, cost escalation, and available alternative choices. We discussed liquidity, stability and growth, sources of revenues and expenditures, cost models, institutional efforts, barriers to cost controls, and cost value chain and explored several avenues of productivity increases. Keywords: Higher Education, Cost control, productivity, liquidity crisis in higher education, tuition, sources of revenues, sources of expenses, value chain, systems model, barriers to cost control, cost value chain.
2020
Amid declining state funding, do public universities seek alternative revenue streams to keep tuition and fees down? Is such diversification only a public university phenomenon? If both private and public schools are seeking new sources of revenue, then state appropriations may not be the impetus. Instead, institutional characteristics may have a greater influence. In addition, would those higher education institutions (HEIs) with a greater propensity to generate alternative revenue have a greater rate of survival? I examine HEIs by sector using the Integrated Postsecondary Education Data System (IPEDS) from fiscal years 2003–2004 through 2016–2017 and provide future researchers with guidance on its use. Controlling for different states' policies, politics, and fiscal health, I find that institutional characteristics influence certain HEIs to seek alternative revenue streams and that these characteristics often strengthen the relationship between state appropriations and alterna...
2002
presidents and System heads from seven western States around a common table to address their shared challenges in leading public higher education.The Roundtable was held on July 15, 2002 in San Diego, California. Plainly stated, the Roundtable's premise was that inadequate financial support from the State is a permanent condition we must adjust to, not a temporary situation to endure. At the same time, the responsibility to educate and prepare students, generate knowledge and innovation, and address major policy issues on behalf of the State is in no way shrinking; and competition from for-profit institutions has brought new market forces into play. Given the challenges, presidents and chancellors find themselves thinking, "There must be a better way. There must be something we can do differently." Participants were asked to speak openly and candidly about what needs to change and what they would like to try, if given the opportunity. Many ideas arose in the course of the free-flowing discussion. Some can be implemented immediately; others would need to be phased in. Some are being done at other institutions so there are models to look at; others are at the cutting edge and would require further discussion and study. Participants also articulated the characteristics necessaryin governance, finance, and leadershipif American public higher education is to fulfill its historical mission and uphold its worldwide premier status. In a very real sense, these characteristics are operating principles that must be established and practiced if the ideas shared at the Roundtable are to be implemented and succeed.