2013/14 Executive Summary

Revenue Forgone

Tuition Fee Discounts and Tuition Fee Waivers—Revenue Forgone

Revenue ForgoneThe Tuition Fee Discount program (also known as State University Grants) is a critical source of assistance for CSU students. Since its inception in 1982/83, the Tuition Fee Discount program has provided need-based discounts to offset the cost of mandatory systemwide tuition fees and the impact of increased charges for students with the greatest financial need.

Prior to 1992/93, the state provided the funds necessary to ensure adequate assistance was available for the CSU's neediest students. Since 1992/93, the CSU has continued assistance to these students by forgoing one-third of annual revenue increases from tuition fees in most years.

The amount projected for 2013/14 Tuition Fee Discounts from tuition fee revenue is $621 million, an increase of $22.8 million from 2012/13. The Tuition Fee Discount adjustment is due to a one-third set-aside from tuition fee revenue derived from 5 percent enrollment growth (estimated 2013/14 marginal cost of $1,455 per FTES). This $621 million of financial aid reflects tuition fees that go uncollected—in effect, waived—and is a form of revenue loss for the CSU. In addition, the annual budget act earmarks $33,785,000 of the CSU's General Fund appropriation for state funded institutional aid bringing the projected combined total for 2013/14 to $654.8 million.

Under current law, there are three state-mandated tuition fee waiver programs: the California Veterans Waiver for children of disabled/deceased veterans (Education Code 66025.3), the Alan Pattee Waiver for dependents of deceased law enforcement or fire suppression personnel (Education Code 68120), and the tuition fee waiver for California residents who were dependents of victims killed in the September 11, 2001, terrorist attacks (Education Code 68121). In addition to state-mandated tuition fee waiver programs, other tuition fee waiver programs include waivers for employees and employee dependents pursuant to collective bargaining agreements. Other non-mandatory waivers have been established by CSU Board of Trustees policy and California statute that include programs for high school students and California residents age 60 years and older, among others. The state has not provided General Fund support for CSU tuition fee waiver programs since fiscal year 1992/93.

The following is a three-year summary of the total revenue forgone and applied to Tuition Fee Discounts and mandatory waivers from 2011/12 through 2013/14.

Three-Year Summary of Tuition Fee Discounts and Tuition Fee Waivers/Revenue Forgone
  2011/12
Actuals
2012/13
Budget
2013/14
Budget
Tuition Fee Discounts (Forgone from Tuition Fees)1 $585,773,000 $598,229,000 $597,049,000
Tuition Fee Discount Adjustment from Enrollment Growth 0 0 23,967,000
Tuition Fee Waivers2 54,279,000 54,578,000 54,578,000
Total Tuition Fee Discounts & Waivers / Revenue Forgone $640,052,000 $652,807,000 $675,594,000

1Tuition Fee Discounts cover tuition fees for eligible students with financial need. Amounts awarded reflect forgone tuition fee revenue for the CSU. There is an additional $33.8 million of state funded institutional aid funded by General Fund appropriation.

2Includes the campus tuition fee waivers reported annually in Enrollment Reporting System Students (ERSS) database (Waiver Codes 01-08). Amounts awarded reflect forgone tuition fee revenue for the CSU.

In the 2011/12 college year (fall, winter, spring, and summer), 11,004 tuition fee waivers were granted to CSU students. When tuition fee rates are applied to these waivers based on student enrollment status, it amounts to about $54.3 million in revenue forgone to the CSU. When the 2012/13 tuition fee rates are applied to these numbers, the level of revenue forgone rises slightly to $54.6 million.

2011/12 Systemwide Tuition Fee Waivers

2010/11 Systemwide Tuition Fee Waivers Graph

2011/12 Systemwide Tuition Fee Waivers
California Veterans 5,717
Alan Pattee 31
Employees and Dependents 2,931
Other Discretionary Waivers 747
High School Students in Special Programs 1,578