TO MEMBERS OF THE ACADEMIC AND STUDENT AFFAIRS COMMITTEE: ACTION ITEM APPROVAL OF MULTI-YEAR PLANS FOR PROFESSIONAL DEGREE SUPPLEMENTAL TUITION

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1 A1 Office of the President TO MEMBERS OF THE ACADEMIC AND STUDENT : For Meeting of ACTION ITEM APPROVAL OF MULTI-YEAR PLANS FOR PROFESSIONAL DEGREE SUPPLEMENTAL TUITION EXECUTIVE SUMMARY This action item requests the Regents approval of the multi-year plans for charging Professional Degree Supplemental Tuition (PDST) for 24 graduate professional degree programs, including one new graduate professional degree program, the Serious Games Master of Science at the UC Santa Cruz campus. The maximum annual PDST levels for the two-to-five-year periods specified in the multi-year plans, and the establishment of the PDST for the Serious Games program, would be effective upon approval of the multi-year plans. Each of the 24 proposals has been reviewed by staff at the Office of the President and has been determined to meet all requirements of Regents Policy 3103: Policy on Professional Degree Supplemental Tuition. The proposals describe the programmatic needs that support the proposed PDST levels, include plans for the use of financial aid to ensure accessibility, and incorporate strategies for improving racial and ethnic diversity in the programs. Programs also shared their multi-year plans with students and faculty, and solicited their feedback using a variety of engagement strategies. The multi-year plans are shown in Attachment 1. A summary of the supporting information provided by each program for its multi-year plan is included in Attachment 2. RECOMMENDATION The President of the University recommends that the Academic and Student Affairs Committee recommend that the Regents approve the multi-year plans for Professional Degree Supplemental Tuition for 24 graduate professional degree programs, as shown in Attachment 1. BACKGROUND Professional Degree Supplemental Tuition was established in to allow UC s professional schools to offset reductions in State support and maintain and enhance program quality. PDST is assessed in addition to mandatory tuition, the Student Services fee, and, if

2 ACADEMIC AND STUDENT -2- A1 applicable, Nonresident Supplemental Tuition. Historically, many of UC s professional schools have held a place of prominence in the nation, promising an exceptional education for a reasonable price. Revenue generated from PDST has been critical to these programs efforts to regain and maintain excellence. The Regents Policy on PDST includes specific conditions for ensuring that the University s commitments to excellence, access, inclusion, affordability, and students public service career decisions are not adversely affected by increases in fees for graduate professional degree students. The University affirmatively monitors related indicators such as student debt levels and trends in student enrollment. Any graduate professional degree program that proposes charging PDST for the first time or proposes increasing PDST is required to submit a multi-year plan for approval. Each multi-year plan is reviewed by the Office of the President for the following information: the amount of resources required to sustain academic quality at, and enrollments in, the particular graduate professional degree program; the intended uses and justification for PDST revenue, including the educational benefits that will be provided to students; the tuition and fees for comparison programs at public and private institutions of higher education; the program s affordability goals, financial aid strategies, and student loan debt trends; the program s racial, ethnic, gender, and (when available) socioeconomic student enrollment trends and diversity strategies; and the views of the program s student body and faculty on the proposed PDST levels. As part of the review process for multi-year plans, programs must demonstrate that proposed PDST levels will not impede the University s commitments to excellence, access, inclusion, and affordability. The Provost also ensures that each program complements its proposed multi-year plans for PDST levels with financial aid measures, including scholarships, grants, and/or loan repayment assistance programs, to ensure access to the degree programs, to minimize financial barriers to the pursuit of lower-paying public interest careers, and to reduce restrictions on students career options due to student debt. In addition, the appropriateness of each program s selection of comparator programs in public and private institutions is examined, and each program s total tuition and/or fees are compared to those of its comparators. A program that submits a multi-year plan that does not include sufficient information or that otherwise falls short of the requirements of Regents Policy 3103 is required to submit a revised proposal and/or reconsider its efforts to increase its PDST level(s). The 24 multi-year plan proposals submitted to the Regents as part of this item have met the standards of the Provost, and the President recommends their approval by the Regents.

3 ACADEMIC AND STUDENT -3- A1 Proposed PDST Levels for California Resident Students As shown in Attachment 1, 24 programs have proposed PDST levels for resident students between and that range from $4,410 to $38,229. The proposed percentage increases range from zero percent to just over 12 percent. One program, Games and Playable Media (UC Santa Cruz), proposes a decrease in PDST in , followed by PDST increases each following year through The duration of the 24 proposed multi-year plans ranged from two years to five years. One program, UCLA s Master of Fine Arts, submitted a two-year plan. Four programs, Public Health at UCLA, Medicine and Public Policy at UC Riverside, and Pharmacy at UCSF, submitted threeyear plans. The remaining 19 programs submitted five-year plans. Display 1 below provides an overview of the 24 programs proposed changes to PDST for California residents between and A summary of each program s multi-year proposal can be found in Attachment 2. Market Comparisons Regents Policy 3103 calls upon programs to develop PDST plans that analyze the graduate professional degree program in relation to its comparators. Most programs consider both public and private comparators in their marketplace analyses. The comparison institutions chosen by UC s programs are generally current competitors for students, faculty, and national rankings or a mix of current competitors and programs with which UC aspires to compete. The 24 graduate professional degree programs have identified comparison programs at public and private institutions across the nation for their marketplace analyses. In academic year , seven of the 24 graduate professional degree programs (Public Health and Art at UCLA; Pharmacy at UCSF; and Educational Leadership, Journalism, Development Practice, and Optometry at UC Berkeley) are anticipated to assess total in-state student charges that exceed the estimated average total charges for in-state students of their public comparison programs. Three programs (Engineering at UC Berkeley, Pharmacy at UC San Diego, and Serious Games at UC Santa Cruz) had no public comparison programs. All of the graduate professional degree programs are expected to assess total in-state student charges below the estimated average total charges for in-state students of their private comparators, with the exception of Preventive Veterinary Medicine at UC Davis and Public Health at UCLA, which had no private comparison programs. The Office of the President scrutinized all of the proposals and found that they provided sufficient justification for their comparison programs.

4 ACADEMIC AND STUDENT -4- A1 Display 1: PDST Cycle Multi-Year Proposal Overview Average Annual Proposed Changes to PDST for California Residents between and Program(s) Proposed New Program Serious Games M.S. (Santa Cruz) No Proposed Changes to PDST (0% Increase for Duration of Plan) 5% Increase or Less Greater than 5% Increase Educational Leadership M.A. (Berkeley) Engineering M.Eng. (Berkeley) Teacher Education (Berkeley) Art M.F.A (Los Angeles) Public Health (Los Angeles) Public Policy (Riverside) Development Practice (Berkeley) Optometry (Berkeley) Journalism (Berkeley) Educational Leadership (Davis) Veterinary Medicine (Davis) Preventive Veterinary Medicine (Davis) Biotechnology Management (Irvine) Engineering Management (Irvine) Public Health (Irvine) Dentistry (Los Angeles) Medicine (Riverside) Pharmacy (San Francisco) Technology Management (Santa Barbara) Pharmacy (San Diego) Product Development (Berkeley) Applied Economics and Finance (Santa Cruz) Proposed Reduction to PDST Games and Playable Media (Santa Cruz)

5 ACADEMIC AND STUDENT -5- A1 Uses of Revenue from Proposed PDST As part of each proposal, the programs described how the PDST revenue reflected in their plans would be utilized. Every program plans to use its proposed PDST revenue over the course of two to five years to enhance program quality, access, inclusion, and affordability, although the specific goals and strategies vary by program. For example, UC Riverside s Public Policy program proposes to use a portion of its PDST revenue to augment its career advising services by hiring a part-time Coach in Residence in addition to its Career Counselor and Internship Coordinator. This new hire would advise students, put together career exploration panels and fairs, and invite policy practitioners to give guest lectures. UC Irvine s Public Health program also seeks to enhance student services by using a portion of its proposed PDST revenue to arrange for Public Health students to take and pass the Certified Public Health examination as part of their training, making it the only institution in California to do so. Other proposed uses of PDST revenue include purchasing instructional equipment, improving the student-faculty ratio, and funding necessary personnel-related costs such as faculty salary adjustments and employee benefits. The proposal summaries provided in Attachment 2 show each program s anticipated expenditures by category of expense. Financial Aid and Student Indebtedness In each multi-year plan, the programs expressed their commitment to providing students with grant and scholarship support in order to attract and enroll a highly talented and socioeconomically diverse student body, consistent with the financial aid policy goals first articulated by the Regents in Each program plans to supplement financial aid sources by an amount equivalent to at least 33 percent of new PDST revenue, or by the amount needed to provide financial aid totaling at least 33 percent of all PDST revenue. Strategies from the proposals to bolster financial aid and minimize student indebtedness include assisting underrepresented students in locating and applying for various fellowships, scholarships, or assistantships; helping students secure paid summer internship opportunities; offering Teaching Assistant positions; and conducting corporate and alumni outreach aimed at establishing fellowships.

6 ACADEMIC AND STUDENT -6- A1 Strategies for Inclusion of Underrepresented Groups Each of the existing programs reported in their multi-year plans on several factors related to enrollment trends and diversity strategies. Examples from the proposals of strategies for inclusion of diverse populations include: creating a full-time Admissions Outreach staff position to focus on diversity recruitment efforts (Games and Playable Media at UC Santa Cruz); hosting summer training programs for high school and college students to prepare them for the admissions process (Dentistry at UCLA); and leveraging the support of robust pipeline programs that focus on students who are from socioeconomically disadvantaged backgrounds, attended underperforming high schools, learned English as a second language, and grew up in medically underserved communities (Medicine at UC Riverside). Faculty and Student Consultation The Regents Policy requires programs to provide opportunities for faculty and students to engage with program leadership about multi-year plans, the rationale for PDST increases or new PDSTs, the impact on program quality of various PDST levels, and how any potentially adverse consequences of PDST levels will be mitigated by financial aid, outreach, and recruitment of low-income and underrepresented minority students. Each of the 24 programs confirmed that the campus Graduate Dean and the Graduate Student President had an opportunity to review its proposal, which was approved by the Chancellor. In addition, each of the multi-year plans describes efforts to solicit student and faculty input. Programs gathered this input in a variety of ways, including conducting focus group discussions with both current and prospective students, holding town hall meetings, sending surveys to all students, meeting with class representatives, and arranging for discussions during regularly scheduled faculty meetings. For the round of multi-year plan proposals, the Office of the President (UCOP) (will provide additional guidance to campuses about best practices for student and faculty consultation and for incorporating the results of that consultation into the multi-year plan that is eventually submitted to UCOP. Multi-Year Plans that Merit Additional Context Five programs are discussed below either because their proposed increases, while justified, represent higher-than-average percentage increases, or because they reflect unique circumstances. The multi-year plans for these five programs were given even greater scrutiny and review by the Provost and UCOP. An exceptional level of analysis was given to all elements of these programs multi-year plans, particularly their strategies for increasing the enrollment of

7 ACADEMIC AND STUDENT -7- A1 students from underrepresented groups and low-income backgrounds, their financial aid strategies and affordability goals, their information about the manageability of student loan debt, their revenue expenditure plans, their cost-cutting and fundraising efforts undertaken to avoid even higher PDST increases, and their student and faculty consultation processes. Each of the proposals has met the expectations of the Provost and staff members of UCOP. Pharmacy UC San Diego. UC San Diego s Pharmacy program is proposing to increase PDST by nine percent in followed by nine percent increases each following year through primarily to enhance program quality. Specifically, in order to accommodate new accreditation standards implemented in 2016 and to properly prepare students to pass two examinations required for pharmacy licensure, the program is required to add new curricula, phase in a series of facilities and classroom upgrades, provide educational services such as examination simulations, and introduce technologies such as a backup data storage system. The program also intends to conduct more targeted outreach to underrepresented minority students, and to provide scholarships to reduce the overall impact to a net five percent increase for continuing students. The PDST increases outlined in the program s proposal are projected to maintain annual student costs below the average of the program s non-uc comparator institutions in California. Product Development UC Berkeley. UC Berkeley s Product Development program (M.S. in Chemical Engineering) is proposing a ten percent increase to its existing PDST level for California residents in the first year of its multi-year plan followed by five percent increases each following year though This program s purpose is to fulfill a need for professionals with backgrounds in the chemical sciences who also have field experience in transforming innovations into commercially successful products. After 12 years of experience, the program proposes to upgrade its delivery model in order to respond to recent innovations in product development and technology commercialization. Proposed PDST revenue would be used for the following purposes: to recruit and assemble faculty from academia and industry; to initiate an Alumni Fund in part to provide additional financial aid to students (beyond the third of new PDST revenue that would already be set aside for aid); to hire a full-time placement professional to help students find and secure employment opportunities; to establish a ten-week summer program to support students in seeking venture funding and/or applying for acceptance into a venture incubator or accelerator; and to help the program secure a permanent location to accommodate its growth objectives. For the duration of the program s plan, the program s annual charges for residents are projected to remain below those of its public and private comparators. 1 This program also proposes to increase its current PDST level for nonresident students by 51 percent in , followed by five percent increases each following year through The purpose of this proposed change is in part to bring parity to the PDST levels charged to residents and nonresidents in the program.

8 ACADEMIC AND STUDENT -8- A1 Applied Economics and Finance UC Santa Cruz. UC Santa Cruz s Applied Economics and Finance program is proposing an increase of just over 12 percent in the first year of its plan, followed by annual increases of approximately three percent through The program received campus seed funding in 2011 to cover lecturer and instructional expenses for 23 units of classes. These funds will fully expire in , and so the proposed increase in the first year ($999 per student) is necessary to continue to provide lecturers for the program s seven classes not taught by senate faculty. The program s proposed PDST levels would also enable the program to provide students with course support, enhance student services, maintain a core group of senate and non-senate faculty to teach in the program and ensure continuity of expertise, and offer students financial aid above current levels. The program s total charges, with the initial increase of just over 12 percent, are projected to remain below those of its public and private comparators for each year of this plan. Additionally, UC Santa Cruz s Applied Economics and Finance program s existing PDST has been constant for the last four academic years, despite being initially approved for up to four percent annual growth. The program chose not to increase PDST for those years to keep costs as low as possible, but inflation coupled with tapered seed funding now requires a larger initial adjustment in fees followed by smaller adjustments thereafter. Had the program followed the initially approved growth rate, its PDST in would be approximately $9,350, whereas the proposed PDST level for California residents in is $9,000. The total charges of this plan will remain lower than the average for its comparator public and private institutions during the full course of the proposed plan. Games and Playable Media UC Santa Cruz. UC Santa Cruz s Games and Playable Media (GPM) program is converting from a oneyear, four-quarter program to a two-year, five-quarter program. As part of this conversion, it is requesting a reduction of just under 73 percent to its existing PDST level (from $30,980 to $8,415), followed by an increase of approximately eight percent in the second year, and five percent increases in the following three years. The proposed decrease in the first year is due to the elimination of the program s summer term and to a campus commitment to fund two new faculty full-time equivalents. The PDST fee, if approved, would continue to support industry experts teaching specific courses, equipment costs, and financial aid. The program s new proposed expenses include the salary of an Admissions Outreach Coordinator to improve student diversity and instructional expenses related to supporting students in highly technical game programming courses. The program also plans to realize efficiencies by sharing resources with the Serious Games M.S. program, which is described in greater detail in the following section. In when the program s PDST fee decreases dramatically, GPM s total in-state charges to degree are projected to be below the average for its public comparators. For the remaining years of the program s multi-year plan, its total charges

9 ACADEMIC AND STUDENT -9- A1 to degree are projected to be marginally higher than the average of its public comparators. Pharmacy UCSF. UCSF s Pharmacy program plans to make use of summer session in order to reduce the total length of the program from four years to three years. During this transition (the fouryear program will terminate after ), the program is requesting approval of two sets of annual PDST fees one for new students who will enroll in four quarters per year, and one for continuing students who will remain enrolled in three quarters per year. Quarterly rates will be identical for both groups of students during this conversion. Instead of assessing PDST three quarters per year for four years, however, the three-year program will assess PDST four quarters per year for three years. The annual PDST level for three-year students, therefore, will be 33 percent higher than that for four-year students, although the total PDST charges will be the same for all students. For continuing students, the program proposes three percent increases for through For new students, the program proposes three percent increases in PDST for and , starting with a PDST level of $29,468 in Multi-year Plan Proposal for a New Graduate Professional Degree Program: Serious Games A multi-year plan for charging PDST is proposed for the Serious Games M.S. graduate professional degree program on the UC Santa Cruz campus. The program will be administered by UCSC s Computational Media department, which currently offers the Games and Playable Media M.S. program at its Silicon Valley campus. The two programs will share resources and infrastructure. Consequently, the newly proposed program is requesting approval of PDST levels identical to those of the GPM program (starting at $8,415 for both residents and nonresidents in , increasing by approximately eight percent in , and increasing by five percent each following year through ). See Display 2 for the annual PDST levels proposed in the program s five-year plan. DISPLAY 2: Proposed Professional Degree Supplemental Tuition Levels for AY through AY * Serious Games Master of Science Santa Cruz Resident PDST Level $8,415 $9,051 $9,504 $9,978 $10,476 Nonresident PDST Level $8,415 $9,051 $9,504 $9,978 $10,476 * The amounts in the display reflect the maximum PDST levels to be assessed, effective as of the academic year indicated. Assessing PDST levels less than the level indicated in the display requires approval by the President with the concurrence of the Chancellor. PDST levels may be assessed beyond the period covering the program s approved multi-year plan but not in excess of the maximum levels specified in the final year. Assessing PDST levels greater than the amounts in the display requires Regents approval of a new multi-year plan. The Serious Games program is the first of its kind to be offered in the United States. Serious games use the design elements developed for entertainment games to further government or corporate training, education, health, public policy, issue advocacy, scientific, or strategic

10 ACADEMIC AND STUDENT -10- A1 communication objectives. Types of serious games include games to promote exercise and physical therapy, games that harness people to perform citizen science, games to promote positive health outcomes, and educational games. The economic market for serious games is estimated to reach between $5 billion and $15 billion by The program trains students in six key areas: game design, game technology, eliciting and integrating subject matter knowledge, designing and conducting efficacy measurements, effective teamwork, and career planning all within the context of the serious games field. The cornerstone of this five-quarter program is to provide a high-touch educational experience that connects students with industry practices, professional development, and networking. Campuslevel approval has been secured and system-level approval is pending. Although a number of courses and resources will be shared between Serious Games and GPM, the game-making goals, process, and product differ between entertainment games and serious games, as do the employment goals and prospective employers. Launching another professional degree program now is consistent with UC Santa Cruz s standing as a leader in games and game development. PDST funding will help ensure that the program can focus on quality while increasing enrollment. The Serious Games program plans to increase enrollment from approximately 15 students in AY to approximately 60 students in AY The program proposes an increase of approximately eight percent in PDST in its second year in order to enroll a second cohort and hire additional industry leaders to teach this cohort s courses. The five percent increases in the PDST fee in subsequent years would be used to purchase updated equipment and address increases in personnel salary and benefit costs. Serious Games is scheduled to launch in pending CCGA and UCOP approval. Campuslevel approval has been secured. Final approval of the multi-year plan and its maximum levels, therefore, is contingent on the program s approval by CCGA and UCOP. Anticipated Multi-year Plan Submissions for the PDST Cycle At the March 2017 Regents meeting, the Regents approved amendments to PDST policy that established a new system for proposing, reviewing, and approving PDST levels for graduate professional degree students. This approval resulted in an amended Regents Policy 3103: Policy on Professional Degree Supplemental Tuition. Under the previous policy, proposals to increase PDST were approved annually that is, for example, a program seeking to increase PDST in two consecutive years would be required to submit a request each year. Depending on the level of the increase, the new PDST level would be approved either by the Regents or by the President. Programs were required to submit their proposals within the context of a multi-year plan, but only the proposed level for a given year not the multi-year plan was subject to approval. Under the amended policy, PDST programs must propose multi-year plans that cover two to five years, and all plans must be submitted for approval by the Regents. Upon approval, programs are authorized to assess up to the annual PDST levels specified in their plans for the duration of their plans without further approval by the Regents or the President. If a program subsequently seeks

11 ACADEMIC AND STUDENT -11- A1 to charge an amount greater than that in the plan approved by the Regents, then it is required to submit a new multi-year plan for Regents approval. Approximately 40 PDST programs must submit new multi-year plans to be considered by the Regents in The graduate professional degree programs that must submit new multi-year plans for review by the Regents during the approval cycle include: PDST programs with multi-year plans that will expire prior to summer or fall 2019 that wish to continue assessing PDST (This includes programs that are not proposing a PDST increase in the following year.) PDST programs with current multi-year plans that wish to propose a PDST increase that is either larger than that outlined in their current plan or above five percent. Graduate professional degree programs that wish to charge PDST for the first time. PDST programs that wish for any reason to engage the new process earlier than necessary. Key to Acronyms AY CCGA GPM PDST UCOP Academic Year Coordinating Committee on Graduate Affairs Games and Playable Media Professional Degree Supplemental Tuition UC Office of the President Attachments: Attachment 1: Proposed PDST Levels for California Residents and Nonresidents for through Attachment 2: Proposal Summaries

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