Charge Letter - Tuition Task Force


DATE:	July 23, 2001
FROM:	Graham B. Spanier
TO:	P. Richard Althouse	Janis E. Jacobs
	Stephen R. Curley	John S. Nichols
	Diane M. Disney	Gary C. Schultz
	Rodney A. Erickson	Susan Welch
	Geoffrey G. Grivner	David N. Wormley
RE:	Task Force on Tuition
The financing of higher education has become ever more challenging in recent years, and Penn State is no exception. Our current and future efforts to enhance the quality of our teaching, research, and service missions will depend largely upon our ability to secure sufficient financial resources. Failure to do so would undoubtedly preclude us from improving-or even maintaining-Penn State's standing as a world-class university. While Commonwealth appropriations have become a progressively smaller share of the University's budget for several decades, Penn State has faced significant cost increases for salaries and benefits, capital improvements and maintenance, information technology, and library materials, as well as other cost drivers. Despite substantial and continuing cost-cutting measures, tuition has had to increase substantially for many years in order for Penn State to remain competitive with our peer institutions in terms of the quality of educational experience we provide. Quality must remain a cornerstone principle even as we consider issues of affordability and accessibility that have long been a part of our mission as a public and land-grant university. It is unlikely that state appropriations in Pennsylvania (or any other state, for that matter) will increase at a sufficient rate to reverse the relative decline in the public's contribution to Penn State's support in the coming years. Thus, we are left with the prospect-or more likely, the reality-that tuition will have to assume an even larger share of the University's operating budget. There are many issues that arise as we consider this future scenario, including the need for a thorough review and analysis of practices and policies regarding tuition levels and differentials.

I am creating a Task Force on Tuition and asking that you serve as a member of this group. I would like the task force to begin its work immediately with a goal of producing a draft report by mid-December of this year. Provost Erickson has agreed to chair the group. I am charging the task force to consider realistic projections of a range of tuition increases that may be necessary over the next 5-10 years to support the continued competitiveness of the University as a premier institution. I would like the task force to examine a number of critical issues and develop models/options and recommendations for specific aspects of tuition practices and policies including the use of differentials (e.g., differential tuition based on academic major and costs/demand for program; differentials based on upper/lower division; differentials by campus locations; differentials based on residency status, etc.). You should also be prepared to make recommendations on policy regarding the use of surcharges and fees as they relate to tuition, and such issues as the relationship of tuition levels in resident versus on-line or other distance educations. I will also appreciate your recommendations concerning alternative models of how significant tuition increases are introduced (e.g., increase borne predominantly by incoming students versus spread across new and incumbent students). In addition, it will be important to consider any recommendations in relation to our commitment to access. Specifically, please consider the extent to which our financial aid programs will be able to accommodate our students. There will undoubtedly be additional questions and issues that arise as you delve further into these matters, and I along with other members of the Board of Trustees, look forward to receiving your analysis and the options and recommendations you provide us. Please let Dr. Erickson know as soon as possible regarding your willingness to participate on the task force. This is an important assignment for the future of the University, and I appreciate very much the expertise and effort you will bring to this task.

cc:	Board of Trustees

TUITION TASK FORCE COMMITTEE MEMBERS

Rodney A. Erickson, Chair Executive Vice President and Provost		Anthony E. Wagner Special Assistant to the Senior Vice
			President for Finance and Business
P. Richard Althouse University Budget Officer		Susan Welch Dean, College of the Liberal Arts
Stephen R. Curley Assistant to the Executive Vice President		David N. Wormley Dean, College of Engineering
	and Provost; Financial Officer
Diane M. Disney Dean, Commonwealth College		Bonnie J. MacEwan Administrative Fellow to the
			Executive Vice President and Provost
Geoffrey G. Grivner Undergraduate Student		Kelly Snyder Administrative Fellow to the
Janis E. Jacobs Vice President for Administration			Vice President for Development and Alumni Relations
John S. Nichols Chair, University Faculty Senate
	Professor of Communications
Gary C. Schultz Senior Vice President for Finance and
	Business/Treasurer

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