May 22, 2002 Board Meeting Red Wing/Winona Technical College Pilot Project Proposal to MnSCU Instate Tuition for Non-resident Students

Proposal:

 

For a three-year period, RWWTC will be allowed to charge in-state tuition to all students up to 9,000 credits sold or 300 full-time equivalent students per year applying to college for admission as either full- or part-time students. A student granted in-state tuition would enjoy this benefit as long as they are continuously enrolled at RWWTC for the duration of their program.

Goals:

  1. Increase enrollments to increase program efficiency and space utilization.

  2. Compete more effectively with Iowa colleges that are currently using this recruitment technique.

  3. Increase the trained labor force for southeast Minnesota.

  4. Recruit potential students in areas currently identified as needed for economic development in southeast Minnesota.

  5. Increase the revenue of the local economies of Winona and Red Wing where our campuses are located.

History and Rational:
Opportunities for recruitment into states without reciprocity agreements are limited for border colleges. Although Iowa and Minnesota do not currently have a reciprocity agreement, northeast Iowa colleges are currently using in-state tuition as a recruiting tool.

Two courses of action may be taken regarding recruitment of potential students. The first course would be to recruit students for any existing college program. Additions to any one program would be minimal and staffing or facilities would not need to be increased. However, resources would be more effectively used. The second course would be to recruit for programs that positively impact the region's economic development needs as well as the state's targeted industries. Most likely the capacity exists for both staffing and classrooms so resources would not need to be added.

The region that the College serves has an extremely large shortage of skilled employees. Forecasts do not indicate a change in this measurement even with a downturn in the economy. The only way to reduce the gap between supply and demand is to train more workers.

The argument to not use in-state tuition as a recruitment tool is that the state appropriation for higher education would be spread thinner, and it is already inadequate for our current needs. Piloting this project on a limited basis for a short period of time would enable us to test the hypothesis that the state will have a net gain rather than a loss by training more students. The gain would be measured by:

 

  1. The number of non-resident students who, upon completion of their education, find employment in Minnesota.
  2. The amount of revenue generated by out-of-state students in our region.
  3. The additional revenue generated for the College through tuition of the additional students that allow the College to use existing capacity.

 

Evaluation:

 

  1. Annual report on the number of non-reciprocity, non-resident students paying in-state tuition.

  2. Student follow-up report:

    • Graduate student follow-up with respect to post-college residence and place of employment.

    • Non-graduate student follow-up with respect to post-college residence and place of employment.

    • Continuing student's choice of educational institution other than RWWTC.

  3. Estimated economic impact of non-resident students on the region.

  4. RWWTC operating budget impact report of the non-resident student.

Summary:
Red Wing/Winona Technical College would like to be granted authority to charge in-state tuition to non-reciprocity, non-resident, new students beginning fall semester 1999 for a period of three years. The College will provide an annual report to the Board of the outcomes detailed above. The report will be presented to the Board by February 1st after the close of the fiscal and academic year. Technical colleges are already measuring most of the proposed outcomes, so the evaluation will be obtained in our regular course of business. The maximum number of students each year in the pilot project will be 9,000 credits sold or 300 full-time students. Thank you for your consideration.

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