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
Capacity 		Actual
Enrollment		 Excess
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.