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.