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.�����������