This document provides draft talking points to guide a teleconference discussion about implementing a differentiated tuition model. It outlines a three-step plan where universities could gradually increase tuition rates for degrees up to 6 times the Consumer Price Index annual increase. Degrees classified as "eminent," such as those leading to high employment, could have lower tuition increases. The program would be reevaluated after 4 years based on economic factors. If a university's student quality or graduation rates dropped for two years in a row, tuition increases would be capped at the CPI increase until improvements are made.

1. DRAFT TALKING POINTS TO GUIDE OCTOBER 17 TELECONFERENCE DISCUSSION
Submitted by Frank Fuller for distribution.
COMMON GOALS
In my opinion, we are in agreement on foundational points; The path seems to be the issue….
ECONOMIC LANDCAPE
For our discussion Wednesday, my concerns that frame the proposed path I am suggesting
are:”Alarmingly high” risk of new global recession (WSJ,1092012), record high student debt
and defaults,50% underunemployed Bachelor graduates since 2008,Florida lagging other states
in economic recovery(DEO,972012) and Peter Thiel „s “University collapse” theory.
Also, I agree with Rep Proctors assessment of Florida‟s budget priorities.
For these reasons, I suggest our path to a common goal be linked to Florida economic landscape
in terms of tuition.
DIFFERENTIATED TUITION
Using the basic language reported under the “Accountability “segment of our Friday draft, the
following are points of clarity knowing much more detail will need to be engrossed once we
agree on concept:
The differentiated tuition model will be built on eminent(pick another name,6 digits) degrees
(bachelors, masters)as outlined in Fridays draft-50% BOG50% of indicator-70 % employment
HSHWHD.
Step 1.-Until a university reaches a 25% of their degrees qualifying as eminent degrees
threshold, all annual tuition increases for any degree program will be limited to annual CPI-U.
The eminent degree STATE funding formula during this time frame would be (15%-CPIU x 2)
applied as bonus funding to the university.
Step 2.-At the 25% threshold, a university can assign an annual differentiated tuition by degree
up to 2.5 x the CPI-U with eminent degrees remaining 1 full CPI-U below maximum
differentiated tuition assigned up to 2.5 x CPI-U maximum. Eminent degrees have to be
maintained as 25% of total though degrees may vary each year.
Step 3.-Once a university is designated an eminent Florida university by BOG ( number of
eminent degrees) based on BOG established criteria, the university can charge differentiated
tuition up to 6 X the CPI-U annually with eminent degree programs remaining 2 full CPI-U
below highest tuition rate assigned.

2. We did not capitalize the word eminent in this text in the hope that another name would surface
(different name later?)…..Once the 25% threshold is reached by a university, the state
contribution moves to the Performance Funding Plan addressed in the “Accountability” segment
draft with no eminent degree bonus funding.
If a university opts out or does not participate in the eminent degree program; maximum tuition
increases are limited to CPI-U annually on any (6 digit) degree program.
The program would be revisited and or revised in 4 years based on Florida‟s economic
landscape, labor market demands, university construction and maintenance and other indicators .
As another thought, I agree universities may not price themselves out of existence; but, price
points may drive some universities operating under an expansionmultiple site model to lower
admission standards to “ “ feed the beast” as cost reduces enrollment from the targeted
population or other non Florida options compete for Florida talent.
If the quality of an incoming class or graduation rate during the next 4 years drops two years in a
row or 2 out of 3 years, the university would hold tuition increases to CPI-U for all degrees
regardless of the schools eminent degree status until the quality of the incoming class and or
graduation rate improves as determined by BOG through annual university reviews.