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. 
• 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. 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.

Procedures for Service-Based Pricing Programs

UW-Madison Academic Programs with Service-Based Pricing

UW-Madison Campus Standard Memorandum of Agreement

UW System Administrative Policy 130, Programming for the Non-Traditional Market in the UW System

UW System Administrative Policy 130 Appendix B: Service-Based Pricing Guidelines and Procedures

UW System Administrative Policy 805, Tuition and Fee Policies for Credit Instruction

Wis. Stat. § 36.27

This policy clarifies when and if students enrolled in service-based pricing academic programs are allowed to be hired into graduate assistantships and what the responsibilities students, programs, departments, and central campus administration have in the employment eligibility determination process.

Academic programs that use a service-based pricing tuition structure are required to operate in a fully self-supporting manner with tuition revenue as the primary source of funding for operational activities. These programs are intended for non-traditional student populations and offer some combination of accelerated curricula, distance education delivery, and other flexibilities needed by non- traditional students, including graduate students.

When students enrolled in service-based pricing programs are hired into traditional graduate assistantship positions equivalent to at least 33.33% of one FTE, the tuition remission associated with the assistantship compromises the operational revenue of the program. To prevent this from occurring, the following is enforced for service-based pricing programs:

• Faculty and staff must disclose remission restrictions for graduate assistantships with the offer of admission, on the academic program’s website and Guide pages, in the academic program’s handbook, and during program orientation.
• A student may accept a graduate assistantship (including those above 33.33% FTE); however, the student will not receive tuition remission that is typically part of the compensation package for a graduate assistantship. The Bursar’s Office enforces this provision by preventing students in service-based pricing programs from receiving tuition remission associated with a graduate assistantship.
• Hiring departments are not obligated to provide tuition assistance. However, an academic unit that wishes to provide tuition assistance may complete the Internal Third-Party Deferral Process for financial incentives which credits a student’s tuition account with funds paid by a UW–Madison academic unit.

Internal Third-Party Deferral Process

Procedures for Service-Based Pricing Programs

Identifying Students in Service-Based Pricing Programs

UW System Administrative Policy 130, Programming For The Non-Traditional Market In The UW System

UW System Administrative Policy 130, Appendix B: Service-Based Pricing Guidelines and Procedures

UW System Administrative Policy 805, Tuition and Fee Policies for Credit Instruction

Wis. Stat. §36.27