Board of Trustees Meeting Agenda | July 2021

Net Tuition Revenue Net tuition revenue (gross tuition less tuition waivers, or “discounts”) is a significant driver for core instructional operations. Again, Washington law limits the amount that CWU is allowed to increase resident undergraduate tuition, but there is no limit to increases on other types of tuition (non-resident undergraduate, resident & non-resident graduate). State law allows 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 (e.g., performance in the arts or athletics), and to supplement federal and state need grants. As indicated in the following chart, which includes the state-funded tuition backfill, CWU’s discount rate has been fairly stable over the past few years.

Net Tuition Revenue








76,640 11,104 (17,264) 70,479

73,845 12,098 (17,127) 68,816

74,639 12,401 (16,098) 70,942

Gross Tuition State Backfill Tuition Waivers Net Tuition

68,639 10,826 (14,630) 64,835

71,374 11,104 (15,124) 67,354

74,470 11,254 (17,068) 68,656

Discount Rate

18.4% 18.3% 19.9% 19.7% 19.9% 18.5%

Net Tuition per Capita







Expenditures – State and Tuition Fund Within the context of the RCM/ABB paradigm is the goal to minimize the impact of spending on institutional support in order to push resources to teaching and learning, our core functions. While there is no “overhead rate” stated or implied, one can see in the graphic below that institutional support has hovered very close to 35 percent of all spending since at least FY2002, indicating that this ratio has served the university well over time. Of course, even without any additional new discretionary funding, expenses will continue to grow due to across-the-board, wage-and-benefit increases. But there have also been cuts, particularly in the support functions. These cuts effectively slow the rate of increase and allow additional funding to go to the colleges. When the university was instructed to prepare for a 15% funding cut, we deployed cost cutting measures that mostly affected the non-college areas. That’s why funding for institutional support is showing a decline in FY21 and subsequent recovery in FY22 as spending resumes more traditional patterns.

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