Tuition accounts for the "vast majority" of nearly $35.5 million in revenue growth in the FY17 general fund budget, chief financial officer and chief of staff Miles Lackey told the Professional and Scientific Council during its Aug. 4 meeting.
Tuition's share of that growth is about $33.8 million. Lackey attributed 57 percent of the tuition growth to enrollment increases and the other 43 percent to tuition increases.
State appropriations increased $2.2 million for the current fiscal year. The legislative request for Iowa State for this fiscal year was $8 million, and several iterations of tuition increases were implemented as a result of lower-than-anticipated state appropriations, Lackey said.
Still most affordable
Tuition hikes for the 2016-17 academic year include a $250 increase for resident undergraduates and a $694 increase for nonresident undergraduates.
Despite the increases, Iowa State's tuition and mandatory fees remain the most affordable among ISU's peer group (for both residents and nonresidents), Lackey said. However, he added that nonresidents are getting more sensitive to tuition increases and "that is something that we have to be mindful of."
Supplemental increases fund international services
Tuition increases this fall will include a $500 increase for all nonimmigrant, noncitizen international students. The increase is part of a three-year plan to fund expanded services for international students. Additional $500 increases will follow in the next two academic years.
The funds will help Iowa State better assist international students through, for example, prearrival and arrival services, writing and media center help, advisers in colleges and peer-to-peer programs, Lackey said.
Faculty and staff compensation accounts for 66 percent of the incremental growth in this fiscal year's expenses. Lackey said the compensation increases were applied in these proportions:
- Two-thirds to current employees. Pay raises for P&S employees averaged about 3.6 percent (Lackey noted that figure has not been finalized) and faculty raises averaged 3.5 percent
- One-third to new employees. "Think of it as adding capacity, bringing new people here," he said. Despite new hires, ISU needs to continue working to lower the 19-to-1 student-to-faculty ratio, he added.
Classification and compensation policy study
Lackey said he anticipates a firm will be selected soon to lead the P&S classification and compensation system review, and P&S employees will be included in the advisory committee. The final result should be a true market-based system that aligns with new Fair Labor Standards Act regulations, provides pathways for P&S career development and includes a pay structure that balances marketing, equity and performance.