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Procedures: Service-Based Pricing Program Tuition

Procedures and guidelines related to the policy on offering an academic program utilizing the service-based pricing model.

Policy

Tuition/Service-Based Pricing Programs

Tuition/Service-Based Pricing Programs

Policy Number

UW-1033

Responsible Office

Data, Academic Planning & Institutional Research

Type

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.

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 Documents, Web Pages, or Other Resources

External References

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
Source: View policy UW-1033 in the UW-Madison Policy Library

Graduate Assistantships and Service-Based Pricing

Graduate Assistantships and Service-Based Pricing

Policy Number

UW-1029

Responsible Office

Data, Academic Planning & Institutional Research

Type

University Policy

Rationale/​Purpose

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.

Policy

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.

Related UW–Madison Documents, Web Pages, or Other Resources

External References

Approval Authority

Provost and Vice Chancellor for Academic Affairs

Policy Manager

Vice Provost for Data, Academic Planning & Institutional Research

Contact

Director, Madison Budget Office -- Email the Madison Budget Office at, mbo@vc.wisc.edu
Associate Director, Data, Academic Planning & Institutional Research -- Michelle Young, MEYOUNG@WISC.EDU, (608) 262-2143

Effective Date

05-15-2022
Source: View policy UW-1029 in the UW-Madison Policy Library

Procedures

Background

The University of Wisconsin System policy grants campuses 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 different fiscal model means these programs have requirements in addition to requirements for regular academic program approvals. For programs that meet the criteria and are willing to operate under the associated rules (refer to the Tuition/Service-Based Pricing Programs policy for details), paid tuition for the program will be posted directly to the program through a 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.

These procedures and guidelines apply to all 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.

Proposal Creation and Approval Process Steps

Programs seeking to utilize one of the service-based pricing tuition tiers must show the proposed tuition is appropriate based on the market and show how the proposed tuition is competitive with peer or competitor programs. The process outlined for proposing a service-based pricing program is in addition to the standard process for proposing any for-credit academic program:

  1. Program faculty meet with the appropriate school/college associate deans to discuss the feasibility of creating a new academic program. This discussion should include an honest review of how the program would fit the strategic goals of the department and the service-based pricing policy.
  2. Contact the Division of Continuing Studies and the Graduate School1, per the contacts below. These units/individuals will provide information about the initial steps for proposing a new service-based pricing program.
  3. Initiate a Lumen Program Proposal. The proposal will not be submitted to workflow in Lumen until it is ready to go through governance, meaning both the aspects of the proposal related to the service-based pricing model and the general new academic program proposal components (e.g., the curriculum, the admission process, etc.). It is not necessary or expected that all programmatic or curricular details will be known at this point, but ultimately the full Lumen Program proposal will need to be completed. Throughout the process, it will be important to keep in mind:
    1. School/college budget officers must be involved in planning and must approve plans and budgets for these programs before the program proposal is submitted to the school/college Academic Planning Council (APC) for academic approval. School/college approval signals approval of all aspects of the proposal, including the budget and the financial obligations of the school/college.
    2. If courses from outside the program’s school/college are used in the curriculum a copy of the Memorandum of Agreement (MOA) must be uploaded to the Lumen Program proposal.
  4. Complete the Service-Based Pricing Budget Template
  5. Notify the Division of Continuing Studies and the Graduate School1 (contacts below) when these steps have been completed in Lumen Programs. The Service-Based Pricing Program Committee (see committee details below) will then review the budget spreadsheet and Lumen Programs information. The committee may request additional information or changes prior to the budget review meeting.  
  6. The budget review meeting is held with the Service-Based Pricing Program Committee and those from the school/college involved with planning the new program. This group must include: a) the school/college budget officer, b) the appropriate associate dean for academic affairs, and c) the lead program faculty member. The group will assess whether the proposed program is appropriate for a service-based pricing tuition structure and will meet the requirements of the service-based pricing policy.
  7. The program planning team will get feedback at the meeting as to whether the program meets the criteria and can proceed with planning as a service-based pricing program. Committee members representing the Vice Chancellor for Finance and Administration (VCFA), Data, Academic Planning & Institutional Research (DAPIR), the Graduate School1,and the Division of Continuing Studies (DCS) must unanimously recommend the proposal moving forward. DAPIR will document the meeting decision and feedback in the Lumen Program proposal.
  8. Once the budget is approved, the program will upload the approved Service-Based Pricing Budget Spreadsheet and the Service-Based Pricing Tuition Request Form to the appropriate fields in the Resources, Budget, and Finance section of the Lumen Programs proposal form.
  9. With approval on the service-based pricing component of the new academic program, the department and school/college will then follow the standard process for proposing a new program and approving it through governance. Please note: 
    1. 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.
    2. If the program requires a course that is outside of the school/college offering the program, a Memorandum of Agreement (MOA) is required between the school/college offering the program and the school/college offering the course. The MOA needs to include agreements on cost, capacity, and other operational needs. If both parties agree, the UW-Madison Campus Standard Memorandum of Agreement may be used. If no MOA exists and a student takes a course in that school/college, the Standard Memorandum of Agreement will be applied.
  10. DAPIR will coordinate approval by the UW System President (for market-based tuition) or UW-Madison Associate Vice Chancellor for Finance and Administration (for online/distance tuition).
  11. Notification of final approval of the tuition will include program representatives, the school/college dean's office, the Graduate School (if applicable), the Registrar’s Office, the Bursar’s Office, the Madison Budget Office, DAPIR, DCS, the VCFA, and the Provost.

Timeline

Proposals for service-based pricing programs follow the same governance approval process as all academic programs with an additional step for the approval of the tuition structure (market-based or online/distance) and tier. Tuition proposals are reviewed once the program has been approved by the UAPC. Proposals for online/distance tuition are reviewed by the Associate Vice Chancellor for Finance and Administration while market-based programs are sent to the chancellor and then to the UW System president. This process has been taking several months recently.

Approved Tuition Tiers

Programs must use an established tuition tier or propose the addition of a new tier. Existing tiers range from $800 to $2,700 in $100 increments.  Proposals for new tiers can be to the Service-Based Pricing Program Committee by contacting the DAPIR member of the committee. Proposed tiers must use $100 increments.

Market Research

Market research is to be updated and reviewed regularly, at a minimum for the 3 year check-in and 5 year review. Market research for new program planning and continued ongoing program review can come from a variety of sources. Accepted sources of research include:

• Data collected through student/alumni/employer/industry partner focus groups or surveys
• Reports generated through market research tools or services within your school or college
• Reports generated by the Professional Degrees and Certificates team in the Division of Continuing Studies.  To request a report, contact the Assistant Dean for Professional Degrees & Certificates. Reports typically are generated within 4 weeks but can take up to 6 weeks to prepare.

Changing the Tuition Tier for an Approved Service-Based Pricing Program

An academic program's tuition tier is based on market and competitive pricing research. The program is priced to take into account fixed and variable costs, future enrollments, and frequency of offerings, recognizing new and additional program cost implications. Market research will be updated and reviewed regularly.

If an existing program that has been approved for service-based pricing determines that the tier currently used is not appropriate, a request may be made to change the tier. This is done by completing the Service-Based Pricing Tuition Request Form and an updated Service-Based Pricing Budget Spreadsheet.The change proposal must be approved by the Associate Vice Chancellor for Finance and Administration (online/distance tuition) or by the UW System President (market-based tuition) by February for a fall term program start or by November for a summer term program start.

If the change is approved it will apply to all students in the program, cohort tuition is not allowed.

Changing from a Pooled/101 Program into a Service-Based Pricing Program and Vice-Versa

It is not possible to convert an existing pooled/101 program into a service-based pricing program. If an existing pooled/101 program desires to run with the service-based pricing model, the existing program must be suspended/discontinued and a new program with the service-based pricing model must be proposed in its place, following the process detailed on this page.

Currently there is no process to change a service-based pricing program to a pooled/101 program, any requests to do so will be handled on a case-by-case basis.

Audit/Review Process

All service-based pricing programs will undergo financial and operational reviews as part of the academic program review process (i.e., the Graduate School's Three-Year Check-in, the five-year program review for new programs, and the ten-year program review for continuing programs). In addition, reviews may be triggered by low enrollment, other operational or fiscal challenges, or at the request of the school/college dean’s office or the Service-Based Pricing Programs Committee.

For the scheduled academic program review, the program will prepare an updated Service-Based Pricing Budget Spreadsheet using data from the previous and current year, as well as projections for the next 3-5 years. In addition to the standard program review process for the academic program, the Service-Based Pricing Program Committee will evaluate the program review documents, particularly the updated budget spreadsheet. If the program is deemed not to be meeting the service-based pricing guidelines and expectations, the committee may provide feedback to the school/college dean with recommendations.

Service-Based Pricing Program Committee Voting Members

The following roles/individuals have been designated by UW-Madison to consult with programs seeking to operate an academic program featuring the service-based pricing model. In addition to consulting on eligibility and program development, this committee also reviews and ultimately approves/denies proposals to utilize the service-based pricing model. 

  1. UW-Madison Budget Director, or designee,
  2. Vice Provost for Data, Academic Planning & Institutional Research, or designee,
  3. Associate Dean of Continuing Studies, or designee,
  4. Associate Dean of Graduate School, or designee, and
  5. Vice Chancellor for Finance and Administration, or designee

1 For programs in the Graduate School.  If the program is not part of the Graduate School, please include DAPIR as a contact.

Current Service-Based Pricing Contacts

Please direct questions regarding the service-based pricing policy, procedures, and/or proposals to the following:

Members of the Service-Based Pricing Programs Committee
Division/Unit Individual
Graduate School Jenna Alsteen, jenna.alsteen@wisc.edu 
Division of Continuing Studies (DCS) Alissa Oleck, alissa.oleck@wisc.edu 
Vice Chancellor for Finance and Administration (VCFA) Paul Seitz, pseitz@wisc.edu 
Data, Academic Planning & Institutional Research (DAPIR) Michelle Young, meyoung@wisc.edu 
Madison Budget Office Michael Verhagen, michael.verhagen@wisc.edu 

Resources

List of Service-Based Pricing Programs 

Course Enrollments for Students in Service-Based Pricing Programs


Keywords:
131, non-pooled, revenue 
Doc ID:
119771
Owned by:
Michelle Y. in Academic Planning
Created:
2022-07-18
Updated:
2024-06-27
Sites:
Academic Planning, Lumen and Guide