Budget Model Manual (pdf) - Cornell University Division of Budget ...

Undergraduate Tuition and Financial Aid
Undergraduate Tuition Revenue
Undergraduate tuition revenue for the academic year (Fall and Spring semesters) is pooled. The size of
the Undergraduate Tuition Pool (UTP) is calculated for budgeting purposes as follows:
Projected enrollments are calculated for each college, and for resident/non-resident
enrollments within the contract colleges. Enrollment projections originate in Institutional
Research & Planning (IRP) in the fall semester and are sent to each college for review.
Projected tuition is calculated for each college by multiplying enrollments by applicable tuitions.
(This calculation yields a “gross” tuition and does not reflect the actual price that students pay.)
The Contract College True-Up is a calculation that earmarks a share of the state appropriation
for the UTP. The value of the True-Up is calculated by multiplying the difference between the
resident, contract college tuition rate and the tuition that applies to all other undergraduates
by the projected enrollment of resident students in the contract colleges.
o The effect of the Contract College True-Up is to provide an equitable contribution to the
tuition pool for all.
o undergraduate students.
o In recognition of the fact that the University does not receive full tuition from all students
due to financial aid, the net value of the Contract College True-Up is subsequently
discounted at the campus-wide tuition discount rate. This discount is handled as “imputed
financial aid,” below.
Example Calculation of the Undergraduate Tuition Pool:
Projected tuition is calculated for each college by multiplying enrollments by applicable
tuitions. For example, if a contract college enrolls 1,000 [NY State] “resident” and 500
“nonresident” (that is, out-of-state) undergraduate students and the applicable tuition rates are
$30,000 and $45,000 per year, respectively, the projected tuition would be (1,000*30,000) +
(500 * 45,000) = 52,500,000.
To provide an equitable contribution to the total undergraduate tuition pool, a Contract
College True-Up is calculated as the difference in the endowed college tuition rate and the
resident tuition rate multiplied by the number of resident students. For example, if a contract
college enrolls 1000 resident students and the tuition differential is $15,000, the Contract
College True-Up is calculated to be 1000 * 15,000 = 15,000,000. This contribution to the
Undergraduate Tuition Pool is taken from the NY State Appropriation.
The Undergraduate Tuition Pool is taxed to support the USP before the remaining sum is
distributed to the colleges.
Distribution of the Undergraduate Tuition Pool
After the deduction of the USP from the pool, the UTP is distributed using two metrics: college of
enrollment (a headcount of students in their colleges) and college of instruction (as measured by
percent of all teaching). The proportions of the UTP to be distributed by college of enrollment and by
college of instruction are determined by the Provost.
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