RubinBrown Colleges & Universities Stat Book | PUBLIC INSTITUTIONS

INSTITUTION SCORES PUBLIC

Scholarship Allowance In the previous table it was noted that for certain states, the tuition and fees increase outpaced the enrollment growth. This is likely due to increases in tuition rates charged to students coupled with institutions managing their scholarship allowance/institutional discount rate. One way that institutions have sought to attract more students is by increasing the scholarship allowance through providing more discounted tuition. The table below shows the scholarship allowance percentages (tuition discount rate) by state over the last three years.

The average revenue generated from tuition for 53 not-for-profit institutions in Colorado, Illinois, Kansas and Missouri in the last three years was approximately 63.90%. Public institutions have an advantage over not-for-profit institutions as public institutions generally rely heavily on state or local government aid for a significant portion of their revenue, and therefore can keep tuition rates lower than not-for-profit institutions. Contribution Ratios Contribution ratios seek to show how much of the total operating expenses are covered by certain types of revenue. In the following chart, it is noted that public institutions on average had a tuition and fees revenue contribution ratio of 32.90% and a state appropriations contribution ratio of 32.00% in FY18. The remaining 35.00% of expenses for institutions were either not covered or were covered by other revenues such as investment income, sales and services of educational materials, auxiliary enterprises or contributions to the institutions or related foundations. Year-Over-Year Change in State Appropriations State appropriations generally have seen only slight increases over the last few years with many states seeing funding cuts put in place or attempted to be put into place. This creates a challenge for public institutions as costs continue to rise as competition for students remains challenging with overall enrollment trends declining.

Scholarship Allowance Percentage by State *

2-year 4-year

IL

IA KS

MO

FY16

17.00% 21.49% 21.96% 24.80% 15.35% 27.52%

FY17

16.36% 21.85% 21.53% 24.85% 15.86% 29.29%

FY18

17.90% 23.19% 26.16% 24.91% 16.30% 28.51%

Tuition Dependency Ratio The tuition dependency ratio seeks to show how much tuition revenue contributes to the overall operating revenue of an institution. On average, the 36 public institutions included in this analysis generated 35.00%, 33.90%, and 32.80% of their revenue from tuition in FY16, FY17, and FY18, respectively.

Revenue Contribution Ratio Averages by Type of Institution & State *

2-year

4-year

IL

IA

KS

MO

Net Tuition & Fees

37.43% 34.94% 30.55% 23.29% 38.73% 38.00%

FY16

State Appropriations

18.53% 28.03% 35.29% 25.08% 25.93% 30.50%

Total Percentage

55.96% 62.97% 65.84% 48.37% 64.66% 68.50%

Net Tuition & Fees

37.22% 33.50% 28.84% 23.38% 39.26% 33.95%

FY17

State Appropriations

19.20% 29.51% 42.98% 24.31% 25.96% 28.63%

Total Percentage

56.42% 63.01% 71.82% 47.69% 65.22% 62.58%

Net Tuition & Fees

35.84% 32.92% 25.41% 24.37% 40.03% 35.21%

FY18

State Appropriations

19.05% 31.95% 54.92% 22.34% 25.87% 27.46%

Total Percentage

54.89% 64.87% 80.33% 46.71% 65.90% 62.67%

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RubinBrown Colleges & Universities Stats 2019