October 19, 2010
Institutional Priorities Committee
Minutes of October 19, 2010
2:00pm - 4:00pm
DUC 211 A & B
Present: President Eibeck, Francois Rose, Chris Johnston, Elizabeth Griego, Peg Ciccolella, Cathy Peterson, Gene Pearson, Matthew Downs, Mary Lou Lackey, Patrick Cavanaugh, Nejat Duzgunes, Tom Krise, Dan Shipp, Ted Leland
Absent: Robert Brodnick, Marcus Perrot, Patrick Ferrillo, Jin Gong, Kelli Page, Alex Schulte
Guests: Jonallie Parra
Call to Order: 2:05pm
Minutes: Minutes for September 28, 2010 approved
FY12-13 Budget Variables: The committee reviewed the Budget Variables document to help clarify what assumptions are made with regard to the budget in order to come up with a number on how additional dollars are available to invest in the university the next year. The university operates in an incremental budget mode, which is not a holistic approach, however this will be changing in the next few years.
Revenue Assumptions: The committee reviewed the key revenue assumptions, which are tuition and all of the components associate with tuition and other sources of revenue such as fundraising and room and board rate. The goal by the end of the November 2nd IPC meeting is to give Marcus Perrot enough information to come up with a reasonable incremental revenue scenario.
Enrollment, Tuition and Fees, Financial Aid, Fundraising: The committee reviewed the key enrollment assumptions, which are the targeted number of freshmen, the estimated number of continuing students, and the number of graduate students. The committee agreed with the 2011 target for freshmen enrollment of 925.
Tuition Rate Increase: The target is to eliminate the gap between Pacific's undergraduate and graduate tuition and the average of its peers over 5 years, ending in 2015. If the market average increase between now and 2015 is 4% as it has been the past couple of years, and in order to close that gap over the next 4 years, the average annual percentage increase that Pacific would have to impose is 6.4%.
Dean Tom Krise suggested that we plan for a minimum tuition increase at the same level as last year (5.89%) and perhaps consider higher. The difference of a 5.89% increase and a 6.41% increase is roughly $600,000 in Net tuition revenue.
The committee discussed the benefits of recommending the 6.41% tuition increase and realized if the market goes up as they expect, the university will still be over $1000 dollars less than the next lowest in the group of comparison schools. They also looked at the impact this increase would have on students. The difference between a 5.89% and 6.41% increase is the difference between a $2,008 increase and a $2,193 increase, which comes out to $90 a semester.
Motion: To recommend a 6.41% increase in tuition: Tom Krise motion, Cathy Peterson second.
Motion passes with one opposed vote.
Tuition Discount Rate: Pacific's tuition discount rate is the highest on the list of peer universities. The committee reviewed the University Discount Rate Trends document, which showed that the freshmen discount rate last year was nearly 48%, which is too high for the university to afford to continue to operate and offer the quality education that the mission is committed to offering.
Motion: To affirm the discount rate of 39%-40% for freshmen discount rate.
Fundraising: The committee reviewed the Pacific Fundraising Trends document and Pacific's Philanthropic history from FY06 to FY10 as well as FY11 predictions and FY12 and FY13 assumptions. The committee also discussed how a portion of Pacific Fund goes to scholarships for students (2/3) and the other is given out as grants to academic units (1/3).