May 29-30, 2003
ITEM 119-2703-R0503��������������� Authorization to Offer Access at In-State Tuition Rates to On-line Courses with Excess Capacity to Non-resident Students; Montana State University-Billings
THAT:�������������������������������������� The Board of Regents of Higher Education authorizes Montana State University-Billings to offer access at In-State Tuition rates to On-line Courses with Excess Capacity to Non-resident Students.
EXPLANATION:����������������������� Montana State University-Billings has excess capacity in a number of its on-line courses.� In order to utilize these courses at or closer to capacity, MSU-Billings would like to offer these courses to non- resident students at resident tuition rates.� Currently, the cost of non-resident tuition and fees (which is $1,378 at 3 credits) prohibits us from being in a competitive market place for non-resident on-line students.� If MSU-Billings is permitted to charge resident tuition and fees (which is currently $555 for 3 credits) we could increase our revenue for on-line courses significantly.
2002-2003 On-line Enrollments & Capacity Analysis
����������������������� Enrollment����������� Actual������������� Excess
������������������������ Capacity��������� Enrollment��������� Capacity
Summer 2002������� 1,938������������������ 935��������������� 1,003
Fall 2002�������������� 2,358��������������� 1,595������������������ 763
Spring 2003���������� 3,251��������������� 2,171��������������� 1,080
Total�������������������� 7,547��������������� 4,701��������������� 2,846
Possible Additional Revenue:
Tuition� $353.40 x Excess Capacity 2,846������� $1,005,776
Additional Costs $200 per student����������������������� 569,200
Net Tuition Revenue�������������������������������������� $�� 436,576
Fees $201.60 x Excess Capacity������������������� $�� 573,754
Total Net Tuition and Fees����������������������������� $1,010,330
The attachments show in detail each on-line class, the capacity for enrollment in the class, actual enrollment, and excess capacity.
MSU-Billings� ability to recruit non-resident on-line enrollment is limited with the cost of non-resident tuition.� Approval of this item will allow MSU-Billings to seek additional resources during this resource constrained economic time.�����������