Headlines/December 22, 1993

Spring semester update: review of funding options

At the December meeting of the UCFV
Board, a lengthy discussion took place
around the need for a spring semester
and a number of options to fund such a
program.

This fall as many as 2,000 people
either could not get all the courses they
needed or could-not get any courses at
all. The new UCFYV strategic plan
identifies the problem of limited access
as one of the greatest challenges facing
the university college.

In November the UCFV Board
requested a number of options that might
be used to address this issue. Given the
current funding situation, limits placed
by the provincial government on overall
tuition fee increases, and the shortage of
classroom space, the most viable
approach is to introduce a spring and/or
summer semester. This will allow UCFV
to offer a number of high-demand
courses at a time when classrooms are
available.

The decision was made to focus on a
seven-week spring semester. The
eventual goal is to develop a full-length
third semester. The problem then
became one of how to raise the funds
needed to mount this spring semester.

In December the Board reviewed five
options and considered the pros and cons
of each.

The options included the following:

1) Implement a significantly higher
tuition fee for spring semester
courses only.

Fees would have to cover the costs of
instruction, educational support services
advertising, and administration.

Pro: Potentially, this could allow
increased access for 500—800 students to
high demand courses.

It could free up some space in courses
in the next fall and winter terms.

_It may focus the government’s
attention on the real needs of the area.

Some students have suggested that if
the increased fee provides access to
courses they need it is actually an
overall cost saving because they can
complete their program sooner.

Student representatives have also told
the Board that living expenses are a
greater burden than higher tuition fees.

Con: It would require students to pay
significantly higher fees for a course that
other students will take for regular rates
a few weeks later.

Concerns have been expressed that
this introduces a two-tiered system
which favours students with a greater
ability to pay.

It may influence the government to
expect more high-tuition courses.

2) Introduce a differential fee program.

This would see a new fee structure
introduced for all students throughout
the year. Fees would be highest for '
students who register in one or two

‘courses and descend in cost towards a

full five-course load, which would be the
same as current levels.

Pro: It would distribute fee increases
among a greater number of students.

Actual increases would be about $20

for a student taking one three-credit

course, but no different for a student
taking four or five courses.

It would generate the revenue needed
to mount a spring semester at usual fees.

Con: This plan would have the

‘heaviest impact on part-time students.

UCFV could not guarantee that
students who wanted more courses to
avoid paying more for fewer courses,
could actually register for them.

3) Introduce a fixed “service”’ fee.

All students would be charged a fixed
fee of approximately $60 regardless of
how many courses they enrolled in.
Other tuition fees would remain constant.

Pro: It would generate the required
funding

Con: It would have the heaviest
impact on part-time students.

4) Reallocate existing funds to the
spring semester.

Pro: Tuition fees could remain the
same for any semester.

Con: Reallocating existing funds
would reduce the funds available to run
courses in the fall and winter and could
lead to a less efficient use of resoures if
enrollments in the spring semester were
not sufficiently high.

5) Maintain the status quo by doing
nothing new or different.

Pro: No new funding required.
Con: No increase in student access.

The Board held several meetings at
which all of these options were
discussed at length. At its December
meeting the Board approved a motion to
proceed with Option 1. At the same time
it was agreed that the Board would again
directly lobby the provincial
government for additional funding
which could help lower the estimated
tuition fee for the spring semester.

In the meantime UCFV will proceed
with plans to implement a spring
semester.

The immediate issues include
establishing a coordinator, reviewing
admission and registration factors,
deciding which courses will be offered,
and determining fees, support services, —
marketing, etc.

RRSP rates

Personnel sends along this description of the average compound rates of return on UCFV’s group RRSP plan as at Sept. 30, 1993.

Rate of return * one year two years three years four years five years
Prudential Equity Account 26.1% 14.4% 13.7% 3.7% 7.2%
Prudential Fixed Income Account 15.6% 16.2% 18.2% 14.1% 14.9%
Prudential Balanced Account 28.6% 21.8% 20.3% 13.7% 14.2%