Section 2: Economic Factors

Describe economic factors that influence your need for tuition increases. More specifically, consider factors such as inflation and regional economic change, market considerations, and competitiveness among peer comparison institutions. Also consider operating revenue compared to peers (tuition-and-fee revenue and state appropriations).

Overall Approach

Given UTSA’s student demographics and the financial challenges faced by many of its students, the university has elected to bring forward a Tuition and Fee Proposal that carefully balances the burden of cost increases with a plan to invest new resources into student success. Additionally, given the cost of instruction in the Colleges of Engineering and Business, UTSA is interested in the application of differential tuition in upper division courses, making 15% of these revenues available for financial aid for students in those disciplines. Fee increases reflect efforts to invest in areas of targeted student need. All of the strategies are supported by the Tuition and Fee Committee, and by the SGA through legislation passed on November 30, 2017.

Relevant Factors

The year-over-year percentage changes in the Higher Education Price Index (HEPI) is 3.0 percent, 2.1 percent and 1.8 percent for FY 2014, FY 2015, and FY 2016, respectively. There are eight cost factors that contribute to the HEPI regression calculation: faculty salaries, administrative salaries, clerical salaries, service employee salaries, fringe benefits, miscellaneous services, supplies and materials, and utilities. The preliminary estimate of the HEPI for 2017 is 3.7%.

Inflation contributes to the need to request an increase in tuition and fees.

Further, the Consumer Price Index provided by the Bureau of Labor Statistics shows a 2.2% increase over the federal fiscal year ending in September 2017.

Both these numbers suggest a 2% increase would be a base level needed to keep up with inflation.

Relative Appropriations

The chart below shows how UTSA compares to other emerging research universities. UTSA’s total revenue per full-time student equivalent (FTSE) is less than that of four of the seven emerging research institutions.

 

Texas Higher Education Coordinating Board - Accountability System
Emerging Research Institution Appropriations per FTSE Appropriations per FTSE Total Revenue per FTSE Total Revenue per FTSE
FY 2014 FY 2015 FY 2014 FY 2015
University of Texas at El Paso $6,164 $6,923 $18,859 $20,404
Texas Tech University $7,036 $6,472 $20,996 $20,397
University of Texas at San Antonio $6,365 $6,396 $19,131 $19,753
University of Houston $6,368 $6,163 $24,746 $25,465
University of Texas at Dallas $6,415 $5,910 $26,637 $24,803
University of North Texas $4,428 $5,250 $17,882 $17,354
University of Texas at Arlington $5,118 $4,909 $18,406 $18,345
Texas State University $5,041 $4,725 $14,607 $15,282
State Average $6,311 $6,210 $22,020 $21,693
Rank order based on appropriations per FTSE FY 2015

Tuition and Affordability

UTSA strives to keep tuition affordable for its students. UTSA maintained a smaller percentage increase in undergraduate resident tuition and fees between AY 2010-2011 and AY 2015-2016 than many other comparable Texas public four-year systems. Additionally, UTSA’s tuition is lower than most emerging institutions as shown in the charts below. Every effort is made to offset increases from tuition and fees with financial aid. The university’s neediest students who have a family contribution of zero will have 90 percent or more of their tuition and fees covered through grants and scholarships.

Average Percentage Tuition and Fee Increases Among Public Four-Year Systems
Institution Percentage Increase
AY 2010-2011 to AY 2015-2016
Texas State University System 30.6%
Texas A&M University System 25.8%
University of Houston System 23.2%
Texas Tech University System 18.0%
U.T. San Antonio 12.5%
Source: integrated Postsecondary Education Data System (IPEDS)

University of Texas System Academic Institutions Annual Tuition and Fees Compared to Other Texas 4-Year Public Universities
Institution Published Annual Tuition and Fee Price - AY 2016
U.T. Dallas $10,864
Texas A&M University - College Station $10,176
U.T. Austin $9,806
U.T. Arlington $9,208
U.T. San Antonio $7,447
U.T. Tyler $7,312
U. T. Rio Grande Valley $7,292
U.T. El Paso $7,259
U. T. Permian Basin $5,250
Source: integrated Postsecondary Education Data System (IPEDS) and for 12 hours only per academic semester

University of Texas System Academic Institutions Annual Tuition and Fees Compared to Other Texas Emerging Research Universities
Institution Published Annual Tuition and Fee Price - AY 2016
University of North Texas $9,730
Texas State University $9,348
University of Houston $8,759
Texas Tech University $8,028
U.T. San Antonio $7,447
Source: integrated Postsecondary Education Data System (IPEDS) and for 12 hours only per academic semester