Net tuition revenue Net tuition revenue (gross tuition less tuition waivers, or discounts) is a significant driver for core instructional operations. Washington state law (RCW) limits the amount that CWU is allowed to increase resident undergraduate tuition, but there is no limit on other types of tuition (non- resident undergraduate, resident & non-resident graduate). RCW gives the university broad authority to waive tuition to achieve university goals. CWU uses tuition waivers for many purposes, including recruiting resident and non-resident first-year and transfer students, attracting students with specialized skills (for example, performance in the arts or athletics), and to supplement federal and state need-based grants. Over the past few years, CWU’s discount rate (and enrollment) has grown quite significantly, however we are planning on a flattening and then reduction of the waiver rate over time. Since tuition waivers can be posted after the day-10 census, for planning and forecasting purposes we are assuming the same waiver rate of 18.5 percent. Based on the preceding discussion about fall quarter headcount, mix of headcount, and course- load distribution, we are assuming the following full year impact on gross and net tuition revenue for FY 2019:
Net Tuition Revenue - Fall '18 Update
FY17 Actual FY18 Actual FY19 Budget FY19 Forecast Better/(Worse)
Gross Tuition State Backfill Tuition Waivers Net Tuition
68,584 $ 10,826 65,043 $ 5,734 $ 18.1%
71,374 $ 11,104 67,354 $ 5,817 $ 18.3%
73,057 $ 11,254 (15,557) 68,754 $ 5,887 $ 18.5%
74,285 $
$
1,228
11,254 (15,799)
-
(14,367) (15,124)
(242) 986
69,740 $
$
Discount Rate Net Tuition per Capita
18.5%
$
5,994
$
85
The bottom line: our current prediction is that net tuition revenue will exceed our budget by just under $1 million, with the very important caveat that this assumes quarterly enrollment (headcount, mix, and course load distribution) patterns similar to past performance. In the context of the RCM/ABB model, any unbudgeted revenues are reserved for the Provost in support of the Division of Academic and Student Life.
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