Board of Trustees Meeting Agenda | July 2021

In the chart below, operating revenues are segregated by type of revenues for the past three years, as well as the budget for FY22. Net tuition revenue and the state allotment are expected to increase nominally in FY22 due to a small decline in total enrollment offset by a 2.8% tuition rate increase and slightly lower tuition waivers. The significant decline in Enterprise Fund revenues in FY21 as a result of restrictions on campus occupancy are expected to partially recover in FY22 as those restrictions have been lifted. Student Activities, which is mostly fee driven, should be essentially flat compared to FY21.

Total Revenues - Operating Funds (in '000's)

- 10,000 20,000 30,000 40,000 50,000 60,000 70,000 80,000

Net Tuition State Allotment

Other Fees

Enterprise Student Activities Fees

FY19 (Actual)

FY20 (Actual)

FY21 (Fcst)

FY22 (Budget)

Tuition Tuition accounts for almost half of the revenues needed to cover core activities in the State and Tuition Fund. Over the years, tuition policy at the state level has varied widely. During the Great Recession the Legislature expected universities to cover major cuts to the state operating allotment with increases to tuition, resulting in four consecutive years of 14-percent tuition increases. Then the legislature froze tuition for two years because tuition had increased to the point that it became politically uncomfortable. In 2015, the legislature rewrote tuition policy in order to reset the balance between state and tuition funding. The new policy reduced tuition at regional institutions by 20 percent over the biennium and provided a corresponding “backfill” of the lost tuition revenue. All future tuition increases were restricted to a rate no more than the 14-year average of wage inflation in Washington state, which has been between 2.2 percent and 2.8 percent.

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