A Study of Tuition in Public Comprehensive Universities and Colle

Western Michigan University ScholarWorks at WMU Dissertations Graduate College 6-1994 A Study of Tuition in Public Comprehensive Universities and Colleges: A Model for Analyzing Factors that Affect Tuition Michael J Roy Western Michigan University Follow this and additional works at: https://scholarworks.wmich.edu/dissertations Part of the Educational Assessment, Evaluation, and Research Commons, Education Economics Commons, and the Higher Education Commons Recommended Citation Roy, Michael J., "A Study of Tuition in Public Comprehensive Universities and Colleges: A Model for Analyzing Factors that Affect Tuition" (1994) Dissertations 1857 https://scholarworks.wmich.edu/dissertations/1857 This Dissertation-Open Access is brought to you for free and open access by the Graduate College at ScholarWorks at WMU It has been accepted for inclusion in Dissertations by an authorized administrator of ScholarWorks at WMU For more information, please contact wmu-scholarworks@wmich.edu A STUDY OF TUITION IN PUBLIC COMPREHENSIVE UNIVERSITIES AND COLLEGES: A MODEL FOR ANALYZING FACTORS THAT AFFECT TUITION by Michael J Roy A Dissertation Submitted to the Faculty of The Graduate College in partial fulfillment of the requirements for the Degree of Doctor of Education Department of Educational Leadership Western Michigan University Kalamazoo, Michigan June 1994 Reproduced with permission of the copyright owner Further reproduction prohibited without permission A STUDY OF TUITION IN PUBLIC COMPREHENSIVE UNIVERSITIES AND COLLEGES: A MODEL FOR ANALYZING FACTORS THAT AFFECT TUITION Michael J Roy, Ed.D Western Michigan University, 1994 The purpose of this study was to ascertain how enrollment and financial factors affect tuition at public comprehensive universities and colleges, and to determine the relative influences that these factors are likely to have on future tuition levels The study methodology included the analysis of years of tuition, enrollment, and financial data for fiscal years 1987 through 1990 of public comprehensive universities and colleges located within the contig­ uous 48 states of the United States In each of the years being studied, approximately 300 institutions completed the IPEDS surveys to allow them to be included in the study The effects on both the level of undergraduate tuition and tuition revenue were analyzed using a four-factor model as the conceptual framework for this study The four factors included in the model were: enrollment, nontuition revenue, resources invested, and student aid The financial factors, nontuition revenue and resources, are an accumulation of 14 subfactors The conceptual hypothesis was that a linear relation­ ship existed between tuition and the factors and subfactors Descriptive statistics, correlation coefficients, and stepwise multi­ ple regression analysis were used to study the relationships between Reproduced with permission of the copyright owner Further reproduction prohibited without permission tuition and the factors and subfactors The data were analyzed on a national and regional basis Based on the correlation coefficients and the multiple regression analysis, there was little or no linear relationship between undergraduate tuition and the factors and subfactors in the study Although the fourfactor model had low predictive value for undergraduate tuition, the model was highly predictive of tuition revenue Using stepwise multiple regression the four-factor model predicted over 90% of the variance in each of years studied Findings of this study show that there are different patterns of pricing, enrollment, revenue, functional expenditures, and student aid among the four geographical regions of the United States and the United States as a whole These patterns were sufficiently different to warrant future study and inclusion of geographic regions in any national peer study on tuition, enrollment, and financial factors Reproduced with permission of the copyright owner Further reproduction prohibited without permission INFORM ATION TO USERS This manuscript has been reproduced from the microfilm master UMI films the text directly from the original or copy submitted Thus, some thesis and dissertation copies are in typewriter face, while others may be from any type of computer printer The quality of this reproduction is dependent upon the qualify of the copy submitted Broken or indistinct print, colored or poor quality illustrations and photographs, print bleedthrough, substandard margins, and improper alignment can adversely affect reproduction In the unlikely event that the author did not send UMI a complete manuscript and there are missing pages, these will be noted Also, if unauthorized copyright material had to be removed, a note will indicate the deletion Oversize materials (e.g., maps, drawings, charts) are reproduced by sectioning the original, beginning at the upper left-hand comer and continuing from left to right in equal sections with small overlaps Each original is also photographed in one exposure and is included in reduced form at the back of the book Photographs included in the original manuscript have been reproduced xerographically in this copy Higher quality 6" x 9" black and white photographic prints are available for any photographs or illustrations appearing in this copy for an additional charge Contact UMI directly to order University Microfilms International A Bell & Howell Information Company 300 North Zeeb Road Ann Arbor, Ml 48106-1346 USA 313/761-4700 800/521-0600 Reproduced with permission of the copyright owner Further reproduction prohibited without permission Reproduced with permission of the copyright owner Further reproduction prohibited without permission O rd er N u m b er 9429016 A study of tu itio n in public com prehensive universities and colleges: A m odel for analyzing factors th a t affect tu itio n Roy, Michael J., Ed.D Western Michigan University, 1994 UMI 300 N Zeeb Rd Ann Aibor, MI 48106 Reproduced with permission of the copyright owner Further reproduction prohibited without permission Reproduced with permission of the copyright owner Further reproduction prohibited without permission DEDICATION To my mother, Barbara, and my deceased father, Raymond, for their sacrifices to provide me with a good education To Joanne and Amanda for their love and patience, and to Pat for his support and encouragement Michael J Roy Reproduced with permission of the copyright owner Further reproduction prohibited without permission ACKNOWLEDGMENTS When I began this study, I did not realize how long and difficult the road would be Along the way several people provided me assist­ ance and guidance and I would like to acknowledge their contribution to this study Dr Patrick M Jenlink, my dissertation chair, who willingly shared his knowledge, and gave me support and guidance when I most needed them; Dr Lowell G Kafer, who freely gave me whatever time I needed, helped me keep my numbers straight, and always had an encouraging word; Dr Charles Hodge, who was willing to serve; Dr Paul B Duby, who was willing to share his knowledge of statistics and to give freely of his time; Lee Pakko, whose knowledge, skill, and dedication made the last mile of this journey much easier; Dru Kierzek, she was there from the beginning, keeping things together, keeping me headed in the right direction, always willing to help, her support and encouragement kept me on the path Michael J Roy ii Reproduced with permission of the copyright owner Further reproduction prohibited without permission Reproduced with permission of the copyright owner Further reproduction prohibited without permission Table C6 Mean Undergraduate Tuition and Mean Unreetrlcted Financial Data per Full-time Equated Student (FTES) by Year for the Northeast Region M 1889 1888 1887 Percent of Total M Percent of Total M 1890 Percent of Total M Percent of Total Three Year Change M % Undergraduate tuition $1,670.48 $1,685.16 $1,810.54 $1,829.94 $359.47 22.9% Tuition revenue $1,662.15 $1,790.08 $1,693.42 $2,066.87 $404.72 24.3% Nontuition Revenue $4,178.21 Appropriations 53.16 Gifts, grants, and contracts 0.45 Endowment Income 18.63 Sales and services 89.65 Other sources $4,340.10 Nontuition revenue 86.3% $4,487.41 1.2% 38.24 0.0% 0.35 28.46 0.4% 2.1% 138.21 100.0% $4,870.67 85.6% $4,759.09 0.8% 87.15 0.0% 0.72 0.6% 29.35 2.9% 154.82 100.0% $5,011.13 85.0% $4,751.19 1.3% 110.22 0.0% 1.01 32.55 0.6% 3.1% 169.22 100.0% $5,064.19 93.8% 2.2% 0.0% 0.6% 3.3% 100.0% $572.98 57.07 0.58 13.92 79.67 $724.09 13.7% 107.4% 122.5% 74.7% 88.7% 16.7% Resources Invested $2,898.06 Instruction 15.65 Research 38.52 Public service 489.67 Academic support 446.15 Student services 890.60 Institutional support 822.27 Operation and maintenance 178.62 Mandatory transfers 47.55 Nonmandatory transfers $5,827.27 Resources invested 49.7% $3,040.42 0.3% 20.92 0.7% 56.46 674.98 8.4% 7.7% 497.17 15.3% 980.06 845.26 14.1% 3.1% 163.66 0.8% 72.54 100.0% $6,251.46 48.8% $3,193.24 21.51 0.3% 74.90 0.9% 642.66 9.2% 8.0% 555.87 15.7% 1,084.97 13.5% 867.83 2.6% ' 204.00 134.40 1.2% 100.0% $6,779.48 47.1% $3,341.65 0.3% 25.04 1.1% 58.07 9.5% 658.63 579.28 8.2% 16.0% 1,111.42 12.8% 685.26 3.0% 181.83 2.0% 118.12 100.0% $6,859.37 $443.60 48.0% 0.4% 9.39 19.55 0.8% 8.5% 168.78 8.3% 133.12 16.0% 220.82 12.7% 62.99 2.6% 3.31 70.57 1.7% 100.0% $1,132.11 15.3% 60.0% 60.8% 34.5% 29.8% 24.8% 7.7% 1.9% 148.4% 19.4% $96.19 $88.32 $102.65 $106.88 $10.49 10.8% Student aid 138 1887 M 1988 Percent of Total M 1989 Percent of Total M 1890 Percent of Total M Percent of Total Three Year Change M % Undergraduate tuition $1,357.00 $1,488.22 $1,601.24 $1,737.68 $380.88 28.1% Tuition revenue $1,633.41 $1,788.68 $1,951.21 $2,088.27 $452.86 27.7% Nontuition Revenue $3,577.59 Appropriation8 59.12 Gifts, grants, and contracts 5.73 Endowment income 151.97 Sales and services 108.93 Other sources $3,903.33 Nontuition revenue 91.7% $3,685.90 1.5% 56.61 0.1% 5.33 3.9% 178.43 2.8% 145.44 100.0% $4,071.71 80.5% $3,813.00 1.4% 69.45 0.1% 5.49 4.4% 182.28 3.6% 166.40 100.0% $4,256.61 89.6% $4,013.09 1.6% 65.37 0.1% 7.30 4.3% 169.40 4.4% 167.50 100.0% $4,482.66 89.9% 1.6% 0.2% 4.2% 4.2% 100.0% $435.60 8.26 1.58 37.43 78.57 $559.33 12.2% 10.6% 27.6% 24.8% 72.1% 14.3% Resources Invested $2,648.56 Instruction 49.22 Research 137.93 Public service 527.70 Academic support 413.00 Student services 628.72 Institutional support 687.25 Operation and maintenance 102.53 Mandatory transfers 54.06 Nonmandatory transfers Resources Invested $5,248.97 50.5% $2,628.27 0.8% 76.03 2.6% 170.61 10.1% 557.85 7.9% 452.55 12.0% 668.65 13.1% 699.85 2.0% 127.87 1.0% 48.75 100.0% $5,630.61 50.2% $2,854.53 61.78 1.4% 3.0% 156.99 9.9% 631.22 8.0% 526.90 11.8% 721.93 694.68 12.4% 2.3% 128.23 0.9% 73.78 100.0% $5,950.23 49.7% $3,078.20 1.0% 47.34 2.6% 149.00 10.6% 670.79 8.9% 568.72 12.1% 625.16 11.7% 724.73 2.2% 135.89 1.2% 74.a c o 2*5* 5* O IO CO IP O N N # # 2* IOIDO 8=8 ^ ## T to O # to O S CCe-MO O Is* I CM "O* h - CD IO O CD O CD CD IO Table C12 Mean Full-time Equated Student (FTES) Enrollments by Year for the Central Region #£# 328 N CO O # IO o 828 !n S IO* 2* 2* 2* O N O I= 0^0 888 2* 2* 2* 2* 2* a* e-DO 328 8: CM CO I 23 CM © ^ , a o U> e a s° U> ### 3=8 U» 788 ##£ TOO 328 CD CM « CM CM -O’ to IO o 8$ i CD to' ss| 5s,i i=r -i S s a ,o ^ il (L h CD e* ^ N CM CO IO 832 IO~ « m« J= S £ m a is -S £ â 2^ CD* ã* *!*- uj s= -e ô h «o ILILQ.H Reproduced with permission of the copyright owner Further reproduction prohibited without permission Mean Fu'l-tlme Equaled Student (FTES) Enrollments by Year for the Southeast Region M unuBiymuuaiBB Undergraduates: Full-time Part-time Total Graduates: Full-time Part-time Total FTES: Full-time Part-time Total 1887 Percent of Total M 1988 Percent of Total M 1889 Percent of Total M 1890 Percent of Total Three Year Change Amount % 3,679 402 4,081 90.1% 9.8% 100.0% 3,614 414 4,228 90.2% 9.8% 100.0% 4,114 441 4,555 90.3% 9.7% 100.0% 4,078 393 4,471 91.2% 8.8% 100.0% 399 -10 390 10.6% •2.4% 6.6% 168 189 357 46.9% 63.1% 100.0% 176 103 369 47.8% 52.2% 100.0% 109 200 399 49.9% 50.1% 100.0% 187 184 370 50.4% 49.6% 100.0% 19 -6 13 11.6% -3.0% 3.8% 3,846 592 4,438 86.7% 13.3% 100.0% 3,991 606 4,597 88.8% 13.2% 100.0% 4,313 640 4,953 87.1% 12.9% 100.0% 4,265 676 4,841 88.1% 11.9% 100.0% 419 -16 403 10.0% •2.6% 9.1% 145 Reproduced with permission of the copyright owner Further reproduction prohibited without permission Table C13 Reproduced with permission of the copyright owner Further reproduction prohibited without permission Table Cl Mean Full-time Equated Student (FTES) Enrollments by Year for the West Region M Undergraduates: Full-time Part-time Total Oraduatea: Full-time Part-time Total FTES: Full-time Part-time Total 1087 Percent of Total M 1088 Percent of Total M 1080 Percent of Total M 1000 Percent of Total Three Year Change Amount % 6,423 757 6,180 87.8% 12.2% 100.0% 6,714 782 6,406 88.0% 12.0% 100.0% 6,687 782 6,440 87.0% 12.1% 100.0% 6,856 813 6,660 87.8% 12.2% 100.0% 433 66 480 6.0% 7.4% 7.0% 425 600 034 45.5% 54.5% 100.0% 410 420 848 40.4% 50.6% 100.0% 510 360 870 50.0% 41.0% 100.0% 507 354 881 58.0% 41.1% 100.0% 82 -155 -73 10.2% -30.4% -7.8% 5,848 1.265 7,114 82.2% 17.8% 100.0% 6,133 1,211 7,344 83.5% 16.5% 100.0% 6,186 1,142 7,328 84.4% 15.6% 100.0% 6,363 1,167 7,530 84.5% 15.5% 100.0% 615 •00 416 8.8% -7.8% 5.8% 146 M Undergraduates: Full-time Part-time Total Graduates: Full-time Part-time Total FTES: Full-time Part-time Total 1887 Percent of Total M 1988 Percent of Total M 1989 Percent of Total M 1990 Percent of Total Three Year Change M % 4,423 572 4,995 68.5% 11.5% 100.0% 4,688 694 5,152 88.6% 11.5% 100.0% 4,727 607 5,334 88.6% 11.4% 100.0% 4,860 613 5,473 68.8% 11.2% 100.0% 437 40 477 9.9% 7.0% 9.5% 228 309 537 42.4% 57.6% 100.0% 236 297 534 44.3% 65.7% 100.0% 265 289 555 47.9% 52.1% 100.0% 266 288 555 48.0% 52.0% 100.0% 38 -21 17 16.8% -6.7% 3.2% 4,651 882 5,533 84.1% 15.9% 100.0% 4,824 891 5,715 64.4% 15.6% 100.0% 4,093 896 5,889 84.8% 15.2% 100.0% 5,126 901 6,027 85.0% 15.0% 100.0% 475 19 494 10.2% 2.2% 8.9% 147 Reproduced with permission of the copyright owner Further reproduction prohibited without permission Table CIS Mean Full-time Equated Student (FTES) Enrollments by Year for the United States BIBLIOGRAPHY American Association of State Colleges and Universities (1988) Public policy agenda 1988 Washington, DC: Author (ERIC Document Reproduction Service No ED 293 462) Bloustein, E J (1989, July) The argument for a "higher tuition" model in financing of public higher education Paper presented at the 24th annual conference of the Society for College and University Plan­ ning, Denver Borg, W R., & Gall, M D (1983) Educational research: An introduc­ tion (4th ed.) New York: Longman Bowen, H R (1980) The cost of higher education: How much colleges and universities spend per student and how much should they spend? San Francisco, CA: Jossey-Bass Bowen, W G (1986, May 21) Alumni Weekly, pp 9-13 Thinking about tuition Princeton Carnegie Commission on Higher Education (1973) Higher education: Who pays? Who benefits? Who should pav? New York: McGrawHill Carnegie Commission on Higher Education (1974) Tuition: A supple­ mental statement to the report of the Carnegie Commission on Higher Education on Who Pays? Who Benefits? Who Should Pav? Berkeley, CA: Author Carnegie Foundation for the Advancement of Teaching (1976) A classification of institutions of higher education (rev ed.) Prince­ ton, NJ: Author Chronicle of Higher Education (1992, August 26) Almanac 39(1) Curry, D J (1988) Tuition and student aid policies: What role for SHEEOs? Denver, CO: State Higher Education Executive Officers Association (ERIC Document Reproduction Service No ED 299 876) DataEase International (1988) DataEase, Version [Computer program] Trumbull, CT: Author Dedmon, D (1987, July) Can we afford not to pay the escalating costs of a college education? Radford (Publication of Radford Uni­ versity), pp 148 Reproduced with permission of the copyright owner Further reproduction prohibited without permission 149 Diffily, A (1987, October) The higher and higher cost of higher educa­ tion Brown Alumni Monthly, pp i-vi Downie, N M., & Heath, R W (1970) ed.) New York: Harper and Row Basic statistical methods (3rd Frances, C (1990) What factors affect college tuition? A guide to the facts and issues Washington, DC: American Association of State Colleges and Universities Halstead, K (1989) Higher education tuition Research Associates Washington, DC: Hansen, W L., & Guidugli, T (1990) Comparing salary and employ­ ment gains for higher education administrators and faculty members Journal of Higher Education 61 142-159 Hauptman, A M Macmillan (1990) The college tuition spiral New York: Hinkle, D E., Wiersma, W„ & Jurs, S G (1988) Applied statistics for the behavioral sciences (2nd ed.) Boston: Houghton Mifflin Huge, E C (Ed.) (1990) Total Quality 1990s Homewood, IL: Irwin An executive guide for the Kirshstein, R J., Sherman, D R„ Tikoff, V K., Masten, _C., & Fairweather, J (1990) The escalating costs of higher education Washington, DC: U.S Department of Education (ERIC Document Reproduction Service No ED 328 114) Kirshstein, R J., Tikoff, V K., Masten, C., & St John, E P (1990) Trends in institutional costs Washington, DC: U.S Department of Education (ERIC Document Reproduction Service No ED 328 115) Kroe, E (1992) Basic student charges at postsecondarv institutions: Academic year 1990-91 (Report No NCES 92 = 316) Washington, DC: National Center for Educational Statistics Layzell, D T., & Lyddon, J W (1990) Budgeting for higher education at the state level: An enigma, paradox, and ritual Washington, DC: George Washington University Leslie, L L., & Brinkman, P T (1988) education New York: Macmillan The economic value of higher Levin, H M (1991) Raising productivity in higher education Journal of Higher Education 62 241-262 Lotus Development Corporation (1989) Lotus 123 Release 3.0 [Computer program] Cambridge, MA: Author Reproduced with permission of the copyright owner Further reproduction prohibited without permission 150 Massachusetts State Board of Regents of Higher Education (1988) Report of the task force on student financial aid: Expanding opportunities for higher education for the commonwealth: Quality, access, and choice Boston: Author (ERIC Document Reproduc­ tion Service No ED 295 536) Massy, W F (1989, October) A strategy for productivity improvement in college and university academic departments Paper presented at the Forum for Postsecondary Governance, Santa Fe, NM Mendenhall, W., Reinmuth, J E., Beaver, R., & Duhan, D Statistics for management and economics (5th ed.) Duxbury Press (1986) Boston: Meyerson, J W., & Johnson, S L (1991) Top concerns for 1992 Journal of the Association of Governing Boards of Universities and Colleges 3 (6) 19-22 Microsoft Corporation (1992) Microsoft excel: puter program] Redmond, WA: Author Version 4.0a [Com­ Mitchell, P M , & Dars, L (1988) A proposed tuition policy for higher education in Massachusetts: Analysis and recommendation Boston: Massachusetts State Board of Regents of Higher Education (ERIC Document Reproduction Service No ED 299 848) Moye, A (1992, September) [Personal communication.] National Association of College and University Business Officers (1990) Financial accounting and reporting manual for higher educa­ tion Washington, DC: Author National Center for Educational Statistics (1987) Integrated oostsecondarv education data system survey Washington, DC: U.S Government Printing Office National Center for Educational Statistics (1988) Integrated postsecondarv education data system survey Washington, DC: U.S Government Printing Office National Center for Educational Statistics (1989) Integrated postsecondarv education data system survey Washington, DC: U.S Government Printing Office National Center for Educational Statistics (1990) Integrated postsecondarv education data system survey Washington, DC: U.S Government Printing Office National Center for Educational Statistics (1992) Digest of educational statistics 9 Washington, DC: U.S Government Printing Office Reproduced with permission of the copyright owner Further reproduction prohibited without permission 151 National Center for Higher Education Management Systems [Data used in this study.] (1992) Norusis, M J (1990) The SPSS guide to data analysis for Release Chicago: SPSS, Inc O'Keefe, M (1987, November-December) really go? Change, pp 12-34 Where does the money Prince, H (1990) Tuition and expenditures at Michigan's public uni­ versities: FY 77 to FY 89 (Contract No 1990-1) Lansing: Michi­ gan Legislature Research Associates (1990) Higher education revenues and expen­ ditures: Institutional data 1987-88 (Vol 1, public institutions) Washington, DC: Author Research Associates (1992) Inflation measures for schools and col­ leges (1992 update) Washington, DC: Author Rusk, J J., & Leslie, L L (1978) The setting of tuition in public higher education Journal of Higher Education 531-547 Shoemaker, D (1986, November) Alumni Magazine Consortium Higher and higher education Snyder, T P., & Galambos, E C (1988) Higher education administra­ tive costs: Continuing the study Washington, DC: U.S Depart­ ment of Education, Office of Educational Research and Improve­ ment SPSS, Inc (1983) SPSSX user's guide New York: McGraw-Hill State Higher Education Executive Officers Association (1988) Report on the cost of college to students: SHEEP committee on college costs Denver, CO: Author (ERIC Document Reproduction Service No ED 299 875) Tolbert, P S (1985) Institutional environments and resource depend­ ence: Sources of administrative structure in institutions of higher education Administrative Science Quarterly 30 1-13 Townsend, P L (1990) Commit to Quality New York: Wiley Weber, A R (1989, July 23) The tuition debate A speech delivered at the Society for College and University Planning, Denver, CO Werth, B (1988), March-April) Why is college so expensive? Change pp 13-25 Reproduced with permission of the copyright owner Further reproduction prohibited without permission Wittstruck, J R., & Bragg, S M (1988) Focus on price: Trends in public higher education tuition and state support Denver, CO: State Higher Education Executive Officers (ERIC Document Repro­ duction Service No ED 299 879) Reproduced with permission of the copyright owner Further reproduction prohibited without permission ... certain enrollment and financial factors and tuition Based on this conceptual framework, data obtained from years of IPEDS annual surveys were analyzed using descriptive and inferential statistical... Officials at universities and colleges, particularly those in the private sector, have indicated they have substantially increased institutional aid The amount of increase in institutional aid... enrollment and financial variables? The study of these questions was facilitated by the testing of a model which in? ? cluded the enrollment and financial variables Limitations and Key Assumptions The study