ANJALI DALAL-WHELAN / NEWS EDITOR

USD  students are well aware of   the high cost that comes with living in San Diego, but students will soon encounter a new cost: increased tuition.  Next year, USD’s tuition will cost $2,730 more than it did this year, according to the website www.sandiego.edu/one-stop/tuition-and-fees/undergraduate.php. With housing   and meal plan costs also rising, the  total price students pay  to  attend USD  could go up by $3,632 depending on  the meal plan and housing style students choose. This number does not include the additional  cost of $150 a semester that will be created   when the new Wellness Center fee kicks in, which will likely be next spring semester. 

Many USD students were not happy to hear about the tuition increase. USD junior Emma Rafael expressed her emotions on the topic.

“I think  that’s bulls**t,” Rafael said.  “They  definitely don’t need to raise the tuition, because it’s already so expensive, [the University has]  more   than      enough money to do everything [they] could want to if [they] could just reallocate it to the proper places.”

USD junior Larissa Weiss shared similar sentiments about where students’ tuition money goes. 

“It just seems like they aren’t budgeting our tuition well, and instead of fixing that, they just want to raise it more. That’s crazy,” Weiss said.  

At an Associate Student Government (ASG)  senate meeting    on   April 11, USD Assistant Vice President for Budget and Planning Marie Davis presented information on USD’s finances to ASG. Davis explained USD’s budget for the nearly complete 2023-2024 academic year.

In her presentation to ASG, Davis acknowledged the tuition increase  next year, but explained that USD is competitively priced in comparison to its peer schools.

“We have tried to be very thoughtful with holding those increases as low as possible, while  still remaining competitive against our peers and accounting for those inflation measures that we are talking about in terms    of cost of living, food and cost of labor,” Davis said. 

Peer universities were identified    by    Davis as universities that many USD students  also apply to.   The  tuition   and    fees (not including housing and meal plan) costs for the 2024-25 academic year vary between the peer institutions. According to each school’s website, Notre Dame University  charges around $65,000, University of Southern California costs over $71,000 and Pepperdine University costs around $70,000. With the total cost of USD’s tuition and fees coming to $59,486 for the 2024-25 academic year, according to the website www.sandiego.edu/one-stop/tuition-and-fees/undergraduate.php. USD’s tuition is lower than some comparable schools. These schools were identified by Davis’ presentation as comparable schools.  

According   to     Davis’s presentation, this year, USD’s budget revenue  was $512.8 million. 86% of USD’s revenue comes from Academic Affairs — which means students’ tuition and fees. 

“We are a very tuition-dependent university when it comes to funding our operating department,” Davis explained. 

11% of USD’s revenue comes from Auxiliary Services, which includes facilities, parking, dining, hospitality and housing. These services are self-sustaining and make a profit that goes back to the school. The other 3% is from miscellaneous revenue sources such as ticket sales. 

Davis continued to explain that this year, USD’s budgeted gross expenditures were also $512.8 million. The largest part of USD’s budget, 50% of it, goes toward   salaries and benefits, 28% of the budget is allocated to Financial Aid and 16%    is    allocated to non-labor operating expenses, which includes faculty professional development and supplies for classrooms, labs and restrooms. 5% goes to fixed expenses which includes building maintenance, and to pay the interest for the university’s debt.  1% of the budget supports equipment across campus. 

This year, the budget was created so expenditures and revenue were equal. However, in actuality, there is usually a difference between the numbers. Looking at the past two reported years, 2022 and 2023, can show how USD usually makes or loses money each year. A net operating income   is    the  amount  a company or organization makes after expenses are  subtracted from revenue. 

USD’s net operating income can be positive or negative, depending   on  the year. Katy Roig, USD’s Vice President for Finance and Chief Financial Officer provided additional context  on   net operating income. These   numbers  do not include the money  given by  USD’s donors, because   as Roig explained, donors can restrict where their money  should  be allocated, which  is called  donor restrictions. Roig explained the changes in the University’s  assets, based on how  much   income USD made in the   past few financial years (FY). 

“For FY 2022, the increase in net    assets    from operations without donor restrictions was $6.1 million; for FY2023, the decrease in net assets from operations without donor restrictions was -$8.7 million,” Roig said. 

This means that in FY 2022 USD made $6.1 million, but in FY 2023, there was a decrease of $8.7 million in net assets. 

Roig explained where the money is directed when the University   does        make     an  income. 

“When  the  University has a net increase  in  unrestricted net assets from operations, those resources are directed toward investment    in academic priorities, capital   projects  or other one-time strategic initiatives,” Roig said. 

Capital projects can consist of building or improving facilities. strategic initiatives are projects created by the school, such as USD’s “Recruiting and Retaining a Diverse Staff and Administration” plan. 

Most USD students don’t pay the “sticker price” for tuition. According to USD’s website, over 78% of undergraduates receive some financial help. This   includes need-based financial aid and scholarships.