New Fall 2003 Fee Increment for IUPUI
In his June 27, 2002 "Dear Colleagues" letter IU President Myles Brand announced a new Commitment to Excellence Tuition Program.  For IUPUI students the program will include the assessment of a different undergraduate fee rate for new and transfer students.  Details of the program appear in the President's letter below. 

The following describes the method that will be used for calculating the fee rate at IUPUI and IUPUI Columbus.
  1. The fee will be assessed beginning with the Fall 2003 semester.
  2. The fee will be based on a 30 credit hour calculation base.  $800 divided by 30 credit hours = $26.67 per credit hour for the new increment (rounded to $26.65).  The new increment will be used in the calculation of fee rates for new and transfer students).  The new increment will be added to ALL credit hours, thus students taking more than 30 hours in a given year will be assessed more than $800.  The $800 is used only for calculation purposes.
  3. The new increment will be added to the regular undergraduate credit hour rate (both resident or non-resident). 
  4. The regular credit hour rate to be assessed to continuing students will be determined in May 2003 and will be announced by the President's Office following approval of the new rates.
  5. The new increment will be assessed to all new and new transfer students whose entry semester, that is, the first time the student was enrolled on any of the IU campuses in any capacity (degree or non-degree) is Summer (or later) of 2003 and thereafter.
  6. As new students enter the university in later semesters, they too will be assessed the higher fee rate.  This process will continue for approximately 7 to 8 years, at which time all students, as well as returning students, will be assessed the higher rate.
  7. Each subsequent year, both the new and continuing student rates will be reviewed by the IU Trustees and each will be subject to annual increases.  In other words, the new increment mentioned in item #2 above for IUPUI and IUPU Columbus is related only to the 2003-2004 year and that value may increase in future years.
  8. Any students who are assessed at the high rate will continue to be assessed at the high rate.  Only students whose entry semester occurred prior to the Summer sessions of 2003 will be assessed at the low rate.
  • Continuing undergraduate students will pay the (regular credit hour rate)
  • New and Transfer Students will pay (the regular credit hour rate PLUS the new increment)

Additional information about the new fee increment will be added to this page as it is released. 

President Brand's letter follows -

adfi/mpc
 


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President Brand's Letter
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Sent: June 27, 2002

Dear Colleagues,

As you are no doubt aware, at their June meeting the Trustees of Indiana University approved a special tuition increment for fall semester 2003. The Commitment to Excellence Tuition Program assesses an increase of $1000 for new students at the Bloomington campus, $800 at IUPUI, and $500 for the regional campuses. These additional funds will be dedicated to supporting excellence in academic programs.

Information about this special tuition increment has been provided by the media, and I expect you have heard from campus leaders about the specifics of the program. I would like to take a moment to underscore the importance this commitment has for IU's future and to provide some context for the decision.

Nationally, and here in Indiana, we have seen an important shift in the way public higher education is perceived and in the way it is financed. From the World War II era into the 1970's, higher education was considered a public good.  An educated citizenry was seen as essential to the health of our democracy, our economy, and our quality of life. Since then, this perception has shifted. Now education is seen as a private good. Because college educated individuals gain increased earning power, education has come to be seen as a private benefit for which individuals themselves should pay. Thus, as higher education is thought more and more to benefit individual students, rather than the general public, the burden of financing it has shifted from the state to the individual and his or her family.

Indiana's funding of higher education reflects this shift. In 1975-76, IU received 7.2% of Indiana=s total state general fund operating appropriations. By 2000-01, IU=s share had decreased to 4.6%. This decrease has been steady and continuous. Indiana, like other states, has focused its funding in areas that are perceived to be firm public goods, such as K-12, prisons, Medicare and other entitlements.  Public universities across the nation have had parallel state funding decreases. Of course, as state support diminishes and the costs of higher education increase, so does tuition.

The problem is exacerbated in Indiana. The state has historically provided low levels of support for higher education: IU and Purdue have for many decades ranked 9th and 10th in the Big Ten in support per student. In the current recession, our state has suffered more than most. And as a result, the university has lost funding, sustaining more than $100 million in budget cuts this during this biennium. Almost all of these cuts were taken by non-academic units. At IUB, for instance, only 0.2% came from academic programs.

During its special session, the legislature did take steps that will have a positive impact on Indiana's economic outlook. It protected homeowners from property tax hikes and restructured business taxes in order to make the state more competitive in the future. These were difficult decisions. Governor O'Bannon and our other elected officials deserve praise for their accomplishments. Nonetheless, the next biennium or two will be difficult; expected state revenue will not meet all the state's budget needs. Higher education, in particular, will continue to face challenges.

Indiana University is one of the great public institutions of higher learning in the nation. Despite lack of resources, IU's academic reputation ranks high among all public universities. We do more with less. IU exhibits genuine excellence in its three missions of teaching, research, and service. Enrollment is strong. Competitively won research dollars have more than tripled since 1990. We have gone from ranking near the bottom of the Big Ten in the number of endowed chairs and professorships to first place. And our faculty continue to excel. In the past few years, IU faculty members have been elected to prestigious honorary societies, recognized by numerous awards, and chosen National Teacher of the Year. And thanks to the good work of the Foundation staff and the generosity of the university's many friends, IU ranks first among all U.S. public university in voluntary support. Add to these accolades the fact that we are more actively engaged than ever in promoting quality of life for the state's citizens through such programs the Indiana Genomics Initiative and the Health and Life Sciences Initiative, which will do a great deal to improve healthcare for all and help develop a 21st century Hoosier economy.

We are indeed doing well. But if we are to be true to IU's traditions of excellence, we must continue to strive to support the quality of our university into the future. Given Indiana's continued economic difficulties, the modest budget resulting from recent legislative action, and historical trends, we cannot realistically expect the state to support our goal of academic enhancement. Tightening our belts and increasing administrative efficiency will take us only so far. If we are to continue improving academically and competing among the best, we must find additional resources.

I have been discussing these issues with the Trustees for several years. I am proud of the position the Trustees have taken about the special tuition increment. They have absolutely no doubt that the value of an IU education is directly dependent on the quality of our academic programs. While they regretfully acknowledge that, even with higher levels of financial aid, this commitment to excellence will place an additional burden on students and their families, they also recognize that the increase is unavoidable. We have had extensive discussions about financial aid and how best to ensure that the tuition increments do not limit access for low- and middle-income students. For our Trustees and for me, the academic quality of the university is both its most important asset and our first priority.

There is no substitute for excellence. Despite difficult financial times, despite the shift away from public financing of higher education, Indiana University is now well positioned to enhance our academic quality. I have asked the chancellors to plan and implement programs that take maximum advantage of these new resources. We will go forward with strength and with pride in our great university.

Sincerely,

Myles Brand

President

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