BOARD POLICY DOCUMENT
Board approval dates:
- Created on: 03/01/2024
- Most recent update: 03/01/2024
Policy on Tuition Increases
Tuition for the Academy’s programs will be set by the board, and reviewed regularly, prior to the matriculation of each incoming class. Adjustments to tuition levels may be approved periodically. Routine increases should generally reflect over-time cost-of-living adjustments (COLA) only, but may include additional adjustments designed to fund strategic goals. The CPI-W is the preferred COLA index.
Purpose or Scope
The main purpose of tuition increases is to ensure adjustments to the college’s revenue streams that help to bring balance and relative stability to the long-term revenue-expense picture. Tuition revenues represent the largest source of institutional revenue. For a stable enrollment picture, tuition changes generally represent the main avenue for adjusting revenues if this is needed. Even in steady-state systems with stable enrollments, increased revenues may be needed at times if expenditures vary for reasons that are outside the institution’s direct control. For example, utility bills may increase because of inflationary pressure. Utility bills must obviously be paid. If they increase from year to year, then revenues must increase concomitantly to allow for the bills to continue to be paid without putting financial pressure on other expense areas.
The default expectation at the college should usually be that tuition increases will, at minimum, keep pace with general inflationary pressure over time. Cost-of-living adjustments are generally the most appropriate way to do this. Adjustments should be indexed. The Consumer Price Index (CPI-W) as published by the US Bureau of Labor Statistics is the preferred index used for calculating tuition increases.
Any proposed tuition adjustments for incoming Academy classes should be made at least 8 months before a class is scheduled to matriculate. This proactive approach allows students to be informed ahead of time about tuition expectations. COLA adjustments to tuition should use the most recent incoming class tuition as the base for calculating any indexed changes.
Tuition increases that are over and above the CPI-W percentage at any given time must be justified by a financial analysis, with reference to appropriate strategic plan goals and priorities.
Supporting Material
A CPI-W based index, including monthly historical inflationary figures for the US, is available at: