Tuition/Service-Based Pricing Programs

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Policy Number:
UW-1033
Responsible Office:
Data, Academic Planning & Institutional Research

University Policy

Rationale/​Purpose:

University of Wisconsin System policy grants UW institutions the authority to offer academic programs for nontraditional students that can respond to market demands while including additional instructional and student support services dedicated to the success of these students. The alternative fiscal model means these programs have additional requirements compared to regular academic program approvals. For academic programs that meet the eligibility criteria and are willing to operate under the associated rules, tuition payments for students in these programs are posted directly to the program’s fund 131 account to cover expenses and allow for program reinvestment. The rules associated with service-based programs are designed to protect the tuition pool and support program success.

Definitions:
Academic Division (School/College)
An academic group of the university, defined in UW-803 Faculty Policies and Procedures Chapter 3, that serves as a school, college or like unit and is led by a dean or director who reports to the Provost.
Academic Program
An area of study that leads to a degree/major, certificate, minor or named option.
Academic Unit
The academic and administrative home for an academic program or subject listing, also known as an academic department or department-like unit, housed within an academic division (school/college). The academic unit originates all program and curricular changes through academic governance; ensures the curriculum is appropriate and that courses are offered regularly; provides student support services such as advising; prepares all content for the Guide and assures the program and subject listing is represented accurately at all times; oversees the course evaluation process; coordinates assessment and program review; and receives allocation for program enrollment, degrees, certificates and credits in the information systems. Three types of academic units exist at UW-Madison:
Department
A group of faculty with a common field of knowledge or closely related scholarly interests. A department serves as the tenure homes for faculty, exercises a broad range of functions and duties in relation to faculty academic life, and may also house academic programs and course subject listings. A department is approved as such by the University Academic Planning Council, the University Committee, and the Faculty Senate per UW-805 Faculty Policies and Procedures Chapter 5. In some cases, the academic division serves as the department.
Department-like Unit with tenure
A group of faculty who are not all in the same department but who share responsibilities for departmental functions. They exercise a broad range of functions and duties in relation to faculty academic life, and generally house at least one academic program (degree/major or certificate) or subject listing. A department-like academic unit usually does not serve as a tenure home. When a department-like academic unit is approved to serve as a tenure home, each faculty member’s tenure home will be approved on a case-by-case basis by the University Committee.
An academic organization that has department-like status and serves as a faculty tenure home, sometimes with restrictions, is approved as such by the University Academic Planning Council, the University Committee, and the Faculty Senate per UW-805 Faculty Policies and Procedures Chapter 5.
Department-like Unit without tenure
A group of faculty who are not all in the same department but who share responsibilities for departmental functions. This unit exercises a broad range of functions and duties in relation to faculty academic life, and generally houses at least one academic program (degree/major or certificate) or subject listing but does not grant tenure or act as a tenure home.
Audit
Enrollment in a course for no grade and no credit. The student is responsible for attending the class lectures as an observer but will not complete assignments or take exams.
Differential Tuition
Amount charged in addition to base tuition to support additional services and programming for students within the institution.
Nontraditional Student
For purposes of this policy, a “traditional” student enters higher education after recently graduating from high school (typically, ages 18 to 22 years old), enrolls in a four-year program, and lives on or around a campus. A nontraditional student is defined as any student outside of this definition.
Service-Based Pricing Program
A degree/major, capstone certificate, or special student program, consisting of individual courses or a series of courses designed to provide students with a specific set of competencies, operating within either the Online/Distance or Market-Based designation of the Service-Based Pricing tuition structure.
Service-Based Pricing Program – Market-Based Tuition
A program approved for service- based pricing that is designed for non-traditional students and charges a per-credit tuition rate.
Service-Based Pricing Program – Online/Distance Tuition
A program approved for service- based pricing that is offered via online/distance education.
Tuition
In alignment with Wis. Stat. § 36.27, the academic fees assessed all students for instruction at UW-Madison.
Tuition Pool
The tuition pool describes the general campus approach of recording tuition revenue in a central campus account. All tuition revenue that is not generated by serviced- based pricing programs or designated as differential tuition posts to the tuition pool.
Scope:

This policy applies to all academic programs that are offered using a service-based pricing tuition structure. In other contexts, such programs have been referred to as 131, Non-Pooled, Revenue, or Professional Degree and Certificate (PDC) programs.

Policy:

The requirements of this policy are in addition to the program proposal requirements for all for-credit academic programs.

Per UW System policy service-based pricing programs are designed primarily for non-traditional students and meet one or more of the following criteria:

  1. Flexible scheduling packages
  2. Flexible course delivery options
  3. Ancillary services such as evening or weekend services (academic advising, registration, financial aid, etc.), program specific career advising, free or dedicated parking, book delivery services, etc.
  4. Degree completion programs
  5. Geographic dispersion
  6. Collaboration with area employers to develop programs to meet training needs
  7. Certificate and customized graduate degree programs

Characteristics of service-based pricing programs at UW-Madison include:

  1. Demonstrated workforce demand for the program graduates
  2. Defined program learning outcomes oriented to market considerations
  3. Structure that fits within standard academic administrative structures. Service-based pricing programs will have a plan or subplan attribute of ‘Special Plan/OPT Type’.
  4. Tuition structure that is either market-based or online/distance
  5. No funds from the tuition pool
  6. Applied, practice-oriented curriculum, or integrated practice with theory. Research programs such as PhD and related master’s programs are generally not eligible.

Fiscal Requirements

All academic programs offering service-based pricing are subject to the following fiscal requirements:

  • The dean of the academic division and division budget officer must agree to assume fiscal responsibility for program costs not covered by non-pooled tuition revenue and must cover shortfalls using non-state funding.
  • The tuition rate is to be based on market and competitive pricing research and is to reflect fixed and variable costs, future enrollments, and frequency of offerings, along with new and additional program costs. Market research is to be updated and reviewed regularly. A program approved for the service-based pricing tuition structure may propose a change in tuition rate if there is evidence that the current tuition rate is not appropriate.
  • The program must demonstrate the capacity to be self-sustaining (margin positive) within three years of program launch. Program revenues must exceed expenses, including fringe benefits. Expenses include the campus assessment which supports institutional costs related to support these programs.
  • The program must appropriately reflect costs, including the reimbursement of credits in courses funded by the tuition pool. If the program leverages instruction and other services funded by the tuition pool, the program must show it has reimbursed the pool for these expenses.
  • Enrollment in the program must generate enough tuition to cover instructional costs, direct student support costs, and any other fixed or required costs. 750 credits per year is the expected minimum necessary to properly fund program costs. A program with three-year average enrollments below these credit thresholds may trigger a financial and operational review of the long-term health of the program.
  • Tuition for all students in a service-based pricing program is to be charged outside of the credit plateau. The rates available under the service-based pricing structure can be found in the procedures knowledgebase. The Service-Based Pricing Program Committee evaluates requests for additional tiers.
  • Tuition revenue for a service-based pricing program is to be deposited to the Fund 131 account of the academic unit that owns the program.

Each service-based pricing program will undergo financial and operational reviews as part of the academic program review process (three-year check-in, five-year program review, and every 10 years thereafter). In addition, program reviews may be triggered by low enrollment, other operational or fiscal challenges, or at the request of the Dean’s office or the Service-Based Pricing Program Committee. The program review process requires an updated budget spreadsheet populated with data from the previous and current year, along with projections for the next three to five years.

Students and Curriculum

All academic programs offering service-based pricing are subject to the following curricular requirements:

  • Courses which are part of a service-based program are not open to student auditors (see also Auditing Courses).
  • A student enrolled in a service-based pricing program may not be concurrently enrolled in any other degree/major program.
  • The defined curriculum is “self-contained” in that program students are confined to courses from the approved, prescribed curriculum with few options or electives. The program offers a predictable timeline for course offerings and program completion.
  • Curricular requirements for the program must follow a prescribed series of courses specified by subject and catalog number that are logically connected to the program learning outcomes. Elective options must also be defined by subject and catalog number.

If the program requires a course that is outside of the academic division offering the program, a Memorandum of Agreement (MOA) is required between the academic division offering the program and the academic division offering the required course. The MOA must address cost, capacity, and other operational needs. The UW-Madison Campus Standard Memorandum of Agreement may be used.

  • Graduate-level degree/major programs must use Graduate School standards for English proficiency. Capstone certificate programs must be designed so that admission requirements ensure that English as a Second Language (ESL) support is not needed. Programs may not admit students who need ESL services without building sufficient ESL support into their fiscal model and having an explicit MOA with the ESL provider about funding to support ESL services.
  • Students must adhere to the policy on Graduate Assistantships and Service-Based Pricing.
  • Students in service-based pricing programs are not entitled to access student services that are funded by the tuition pool which includes career, learning support and advising services offered outside of the program’s home academic unit. Service-based pricing programs are presumed to offer such services to their students.
  • The program must provide students with information about the limitations placed on them as part of a service-based pricing program, including information about prohibitions on concurrent program enrollment and out-of-program course enrollment, as well as information about the Graduate Assistantships and Service-Based Pricing policy. Programs must note these points in admission and recruitment materials, on the program website, in the program handbook, and on the program orientation and Guide pages.

Implementation

This policy was revised in 2023 to better articulate the requirements of the policy. There may be isolated instances of existing programs that do not meet all requirements. All new programs are expected to meet all aspects of this policy.

Related UW-Madison Policies:
Related UW–Madison Documents, Web Pages, or Other Resources:
External References:

Policy Administration

Approval Authority:
Provost and Vice Chancellor for Academic Affairs
Policy Manager:
Vice Provost for Data, Academic Planning & Institutional Research
Contact:
Associate Director, Data, Academic Planning & Institutional Research -- Michelle Young, MEYOUNG@WISC.EDU, (608) 262-2143
Date Issued:
02-17-2020
Revised Dates:

11-05-2020, 06-15-2023

Retrieved:
12-12-2024 11:27:38