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Spring 2023 Alternative Consultation: Out of State and International Student Fee

                                INFORMATION PAMPHLET
                            SAN DIEGO STATE UNIVERSITY

             PROPOSED OUT OF STATE AND INTERNATIONAL FEE

SDSU is considering the establishment of a mandatory Category II Out of State and International Student Fee to support financial aid, research, and academic support. This fee will only be charged to incoming non-resident students, which includes students from outside of California, and international students. Because of their service to the university’s teaching and research mission, non-resident graduate students serving as Teaching Associates (TAs¹) and non-resident doctoral students would not be charged the fee. Exemptions for Teaching Associates are subject to obtaining proper authority following CSU established policy/procedures. California residents and all currently enrolled students would not be impacted. 

To gain a complete understanding of the proposed fee, the university will host a series of consultations with interested, regularly enrolled SDSU students, including those exclusively attending Imperial Valley (and excluding those students exclusively enrolled in Global Campus programs). 

The fee would be implemented in a cohort model for new, non-resident students. The fee would begin in Fall 2023, and would take three years to be fully implemented.  It would be adjusted annually using the Higher Education Price Index (HEPI), starting in the Fall following the final cohort.

 

Background

SDSU’s strategic plan, “We Rise We Defy: Transcending Borders, Transforming Lives”, outlines a plan to enable research activity to grow while continuing to support excellence in teaching. The university commits to a future where all students are able to achieve their greatest potential and access transformative student experiences in and outside the classroom. This investment in the student experience is the highest priority for the university, but it is not feasible without additional resources.

As of Fall 2022 the California State University was in the first year of a five-year budget compact with the Governor. The multi-year agreement assumes the CSU would receive an annual 5% increase to its General Fund, which amounts to an increase of less than 2.5% of its total budget. Unfortunately, this funding increase will not be sufficient to fully fund mandatory increases such as faculty and staff compensation, risk pool, utilities, and inflation of non-personnel expenses. With campus resources redirected to cover these non-discretionary cost increases, there is little capacity to invest further in student success and research. 

The SDSU Operating Fund receives half its revenue from the state appropriation. An additional 27% of the revenue is generated from tuition, which is set by the Board of Trustees and thus is not at the discretion of individual campuses.  In order to address campus needs, support more students with financial aid, and advance priorities, SDSU is proposing a mandatory Out of State and International Student Fee, applied to incoming non-resident students. 

SDSU maintains its commitment to meet its enrollment target as funded by the CSU system. 

 

Uses of the Out of State and International Student Fee Revenue

The revenue generated by the Out of State and International Student Fee will support financial aid, research and related infrastructure, and academic support. SDSU will employ a staff version of the Building on Inclusive Excellence (BIE) hiring process for all positions hired using these fee funds. This process requires candidates to have a demonstrated commitment to serving GI-2025 defined student groups.  

CSU Chancellor’s Office (5%):

Per CSU policy for this fee, SDSU’s General Fund allocation from the Chancellor’s Office will be reduced by five percent of the fee amount collected in the prior fiscal year. As such, 5% of the fee revenue will be designated to offset this reduction in the campus General Fund allocation. 

Campus Program Allocation (95%):

The remaining fee revenue will be distributed proportionately as outlined below:

• Financial Aid (27%):
  • The fee will support more student financial aid in three areas:
    • approximately two percent (2%) of the fee revenue is intended to support Economic Crisis Response Team (ECRT) scholarships for students experiencing immediate food, housing, or unforeseen financial crises.
    • approximately ten percent (10%) of the fee revenue is intended to support scholarships for students who actively participate in the Elymash Yuuchaap (EY) Indigenous Scholars program². If the 10% cannot be fully expended in a year, remaining funds would be directed toward the middle class scholarship. 
    • approximately fifteen percent (15%) of the fee revenue would be used to support the middle- class scholarship. This scholarship is intended to alleviate the financial burden for students who would otherwise rely heavily on loans to finance their education.
• Research and infrastructure (39%):
  • Approximately thirty-nine percent of the fee will be designated to support research and related infrastructure. Support for research and infrastructure may include, but is not limited to:
    • direct support of undergraduate research (e.g. undergraduate research symposium and the summer undergraduate research program) and the potential development of additional year-around programming for student research
    • institutionalizing faculty assigned time for research
    • core research facility development and staffing
    • staff support for research-related information technology and related government compliance for faculty and student research
    • investments for research data intensive science network, high performance computing, and big data storage
• Academic Support (34%):
  • Approximately thirty-four percent of the fee will be designated for academic support in the Division of Academic Affairs. Once fully implemented, the fee would support approximately 40 new academic staff support positions including, but not limited to:
    • academic advisors
    • departmental support coordinators
    • instructional support technicians and enrollment/registration support staff

 

Financial Analysis

Once fully implemented, the fee is projected to generate approximately $16 million in new resources. Based on the distribution shared above, the fee revenue would allow SDSU to invest an additional $4.3 million in financial aid, $6.2 million in research and infrastructure, and $5.4 million in academic support. 

The fee is in addition to non-resident tuition currently paid by non-resident students.

 

Fee Implementation Schedule 

The fee will be phased in over a minimum of three years using a cohort model. Students in the first cohort (academic year 2023/24) will pay $500 per semester until they progress to degree. Students in the second cohort (academic year 2024/25) will pay $1,000 per semester until they progress to degree. Students in the third cohort (academic year 2025/26) will pay $1,500 per semester until they progress to degree.

Once the fee is fully established at $1,500 per semester, it will be increased annually based on the Higher Education Price Index (HEPI). 

The implementation schedule outlined above assumes the fee has no impact on non-resident enrollment. Should there be negative impacts on non-resident enrollment, it is at the President’s discretion to determine if the fee implementation should be phased in over a longer period.

^{[a]Annual fee increase for based on Higher Education Price Index (assume 3% per year); begins after enrollment of Cohort 3}

^{[1] Does not include Graduate Assistants or Instructional Support Assistants}

^{[2] https://sacd.sdsu.edu/native-resource/programs/eyprogram}

 

Statement in Favor of the Out of State and International Student Fee:

As a lifelong California resident, resources such as education have been highly impacted by out of state and international visitors. Along with many others, I have struggled to gain access to resources that have been allocated to California residents because of increased outside demand and a lack of sufficient resources to accommodate everyone. As a result, I believe that the proposed Out of State and  International Fee will improve everyone's time at SDSU. This school has been plagued by a lack of sufficient resources to support the large student body, and the proposed monetary allocations suggest that both students and staff will greatly benefit.

-SDSU Senior

Rebuttal to Statement in Favor of the Out of State and International Student Fee

No rebuttal submitted.

Statement in Opposition of the Out of State and International Student Fee:

The following proposal may make higher education and college inaccessible for international and out of state students who already have to pay a higher fee in addition to tuition fees. The increased amount may make affordability of college way harder, in addition to other expenses. The funds generated by this fee will be used for scholarships which cannot be applied to by international or out of state students, reducing their benefits and further making financing the college years harder. Such an increment in fee may reduce the number of international and out of state applicants applying to SDSU simply due to the increase in international fee charges, which may discourage many from applying. Reduction in international and out of state student applicants may also reduce in turn the diversity and equity on campus in addition to the students' contribution to research and knowledge at SDSU.

-SDSU 1st Year Graduate Student

Rebuttal to Statement in Opposition of the Out of State and International Student Fee:

 No rebuttal submitted.

Information pamphlet approved by the Campus Fee Advisory Committee (CFAC).