Fiscal Research Division
Legislative Report
As mandated by G.S. 116-143.7, the University of North Carolina charges a 50% tuition surcharge to
undergraduate students who take more than 4 years and 140 degree credit hours to earn a bachelor’s degree or
more than 5 years and 110% of the necessary credit hours for officially designated Five-Year Programs.
S.L. 2012-142, Modify 2011 Appropriations Act, Sec. 9.8, directed the Fiscal Research Division (FRD) to study
the tuition surcharge policy’s effect on student credit hours and the time to graduation; it also directed that the
study examine revenue generated by the surcharge, how often the surcharge is applied, and how students are
informed about the tuition surcharge policy.
Education
December 21, 2012
S.L. 2012-142, Modify 2011 Appropriations Act, Sec. 9.8, directed FRD to study the tuition surcharge policy as
follows:
The Fiscal Research Division, in cooperation with The University of North Carolina, shall study the
tuition surcharge mandated by G.S. 116-143.7. As part of the study, the Fiscal Research Division
shall examine the surcharge's effect, if any, on the number of credit hours taken by students at
constituent institutions of The University of North Carolina and the resulting effect on the timely
achievement of graduation; the number of students subject to the surcharge in each of the last five
academic years; and the revenue generated by the surcharge. In its study, the Fiscal Research
Division shall also examine the methods that The University of North Carolina employs to provide
notice to a student that the student is approaching the credit hour limit and will be charged the tuition
surcharge if the student exceeds that limit. The Fiscal Research Division shall report its findings and
recommendations, including any legislative recommendations, by January 1, 2013, to the Joint
Legislative Education Oversight Committee and to the Education Appropriation Subcommittees of
the House of Representatives and the Senate.
As required by Sec. 9.8, the Fiscal Research Division completed this study in cooperation with UNC-General
Administration (UNC-GA) and the System’s constituent institutions1. UNC-GA provided data on the total credit
hours taken by students, the time to graduation, and the revenue generated by the surcharge. Each campus provided its
own data regarding surcharge revenue generated and the number of students who have been assessed a surcharge in
recent years; also, each campus summarized its communication methods to educate and inform students about the
tuition surcharge, using a survey form designed and provided by FRD.
1 The System’s sixteen constituent university institutions are: Appalachian State University (ASU); Elizabeth City State
University (ECSU); East Carolina University (ECU); Fayetteville State University (FSU); North Carolina Agricultural &
Technical State University (NCA&T); North Carolina Central University (NCCU); North Carolina State University (NCSU);
UNC Asheville (UNCA); UNC-Chapel Hill (UNCCH); UNC Charlotte (UNCC); UNC Greensboro (UNCG); UNC Pembroke
(UNCP); UNC School of the Arts (UNCSA); UNC Wilmington (UNCW); Western Carolina University (WCU); and Winston-
Salem State University (WSSU).