Board of Regents Meeting April 30-May 1, 2009 Agenda Item #4 EXECUTIVE SUMMARY Page 1 of 9

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1 EXECUTIVE SUMMARY Page 1 of 9 Item Name: ADJUSTMENTS TO DIFFERENTIAL TUITION AND SPECIAL PROGRAM FEES FOR THE ACADEMIC YEAR (UA). Action Item Discussion Item Information Item Issue: The Board is asked to approve University of Arizona (UA) mid-year requests for differential tuition and special program fees for the academic year. These charges to students are added to base tuition and mandatory fees. Background The Arizona Board of Regents governs tuition and the setting of tuition, as well as differential tuition and special program fees for the state university system. In December 2007 the Board established a Tuition Task Force to review the Board s tuition policy and process. The recommendations of the Task Force were first presented to the Board at its August 2008 meeting; final recommendations were presented at the September 2009 meeting. The Tuition Task Force met in March and April 2009 to hear from university presidents and student leaders regarding potential additional requests for Fall On April 10, 2009, the university presidents announced their recommendations for an economic recovery surcharge and other fee increases for the academic year. On April 20, 2009, the Board conducted a public hearing throughout the state to obtain student input regarding these additional charges for the academic year. Statutory/Policy Requirement ABOR Policy 4-104B governs the setting of differential tuition. Differential tuition that is different from base tuition and applies to an entire college/school or campus. Differential tuition may be higher or lower than the base and may be established at the graduate or undergraduate level. ABOR Policy 4-104B governs the setting of special program fees. Special costs not normally associated with the delivery of a program are often covered by special program fees. Special program fees are usually earmarked for payment of specific costs and are retained by the program. Contact Information: Meredith Hay, UA Mark Denke, ABOR

2 EXECUTIVE SUMMARY Page 2 of 9 Strategic Implications Discussion Appendix Goal one of the 2020 Vision long-term strategic plan is focused on increasing the educational attainment rate of Arizonans by 2020 to the national average or above. The 2020 Vision calls for the system to double the number of bachelor s degrees produced by 2020, which would require more than 80,000 new students in the system over the next 12 years. Providing the universities with adequate funding for the colleges, programs, and classes is a key component of this goal Differential tuition fees and special program fees are added to base resident and nonresident tuition. The University of Arizona (UA) is requesting: 1. The implementation of a fixed cost of $28,000 including tuition and fees for the 14 month accelerated second degree Bachelor of Science (BSN) program for college graduates. 2. An undergraduate differential tuition fee of $1,000 per semester is for the College of Nursing to include students enrolled in the traditional (4 semesters) BSN degree program. 3. An increase from a special program fee of $2,000 per semester, to $2,600 per semester, for the Doctor of Nursing Practice (DNP) and Ph.D. programs. A summary matrix of the fee requests, with the descriptions listed on the referenced page, are listed in Table 1 on page 3. The Mid-Year Adjustments to Differential Tuition and Special Program Fees for the Academic Year requests are included in the appendix on pages 4-8. Recommendation to the Board It is recommended that the Board approve University of Arizona (UA) mid-year requests for differential tuition and special programs fees as presented in this Executive Summary and in the companion document.

3 EXECUTIVE SUMMARY Page 3 of 9 Table 1 AY MID-YEAR ADJUSTMENTS TO DIFFERENTIAL TUITION AND PROGRAM FEES SUMMARY FEE TYPE UA Program Fee Differential Tuition Program Fee COLLEGE/ SCHOOL College of Nursing College of Nursing College of Nursing PROGRAM Nursing - Accelerated Program (BSN) Nursing - Traditional Bachelor of Science Program (BSN) Nursing - Doctor of Nursing Practice (DNP); Ph.D. Program Grad/ Undergrad Undergraduate (junior / senior) NEW OR INCREASE? New AMOUNT $28,000, fixed for 14 month program Ref. Page Graduate New $1,000/semester 6 Graduate Increase $2,600/semester from $2,

4 EXECUTIVE SUMMARY Page 4 of 9 UNIVERSITY: University of Arizona (UA) College/School: College of Nursing Department: College of Nursing Program: Accelerated BSN Program SPECIAL COMPREHENSIVE PROGRAM FEE FEE REQUEST Is this a graduate or an undergraduate fee? GRADUATE PROGRAM UNDERGRADUATE PROGRAM X Is this a new fee or an increase to an existing fee? NEW FEE X Amount requested: Fixed cost of $28,000 including tuition, differential and fees for the 14 month accelerated second degree BSN program for college graduates. BACKGROUND: In fiscal year 2003 the College of Nursing initiated a groundbreaking accelerated program enabling college graduates with appropriate prerequisite coursework to earn a bachelor of science in nursing (BSN) after fourteen (14) months of didactic and clinical coursework. This program was intended to expedite the ability of qualified students to enter the workforce as professional nurses and contribute to the amelioration of the critical nursing workforce shortage in the state. Since the inception of the program, all students have been fully sponsored by Tucson area hospitals in return for employment commitments lasting from two to three years. Current economic circumstances have impacted upon the ability of the hospital sponsors to continue their financial support for the number of students necessary to maintain an efficient and productive accelerated program. This change has necessitated the development of a fixed cost model in order to sustain the accelerated program and ensure the student enrollment and workforce benefits that derive from its existence. As a second degree program the student demographic of the accelerated BSN more closely resembles graduate students desirous of professional education. As such, a fixed cost approach, similar to that taken with accelerated graduate business education (i.e. evening MBA), is the preferred pricing methodology. DISCUSSION: Access: The College of Nursing remains committed to providing access to accelerated undergraduate education for degreed students seeking professional nursing careers. 20% of the comprehensive fee will be set aside for financial aid to students who demonstrate need. The College of Nursing, through philanthropic sources, provides scholarships to a large number of undergraduate students and development efforts continue to focus upon student support. Although the accelerated program will transition from a fully sponsored model, the College is confident that hospital entities will provide a base level of financial support directly to student recipients in order to perpetuate the recruitment of new graduate professional nurses.

5 EXECUTIVE SUMMARY Page 5 of 9 Quality of Education: Ranked among the top 6% of nursing programs in the country, the College of Nursing is considered a leader in nursing education. Market Pricing and Cost: The cost of the program will exceed the traditional four(4) semester BSN, however, students will be able to enter the workforce ten (10) months earlier than traditional BSN graduates thereby earning nearly a full year of professional compensation due to the accelerated pace of the program. When compared with other accelerated BSN programs, the proposed fixed cost is comparable to the Oregon Health Sciences University program ($36,000) and the program in place at the University of California at San Francisco ($31,000). The ability of the College of Nursing and interested hospital systems to partially offset the fixed cost will bolster the competitiveness of the program and its continued ability to attract students. Affordability: The fixed cost will be affordable in the context of a second degree professional education. Students seeking to re-career into the health sciences will remain highly attracted to the accelerated BSN program and those with sufficient resources will benefit from the ability to seek employment in any sector (hospital, medical office, home health, etc.) without the attachment of a contractual employment commitment. Alternatively, the College anticipates that many students will continue to seek out sponsorship in whole or in part in order to offset the educational costs in return for a post graduation employment commitment. Earnings Potential of Graduates: The market demand for nursing professionals remains very strong. The earnings potential for an entry level Registered Nurse with a baccalaureate degree ranges from $50,000 to $60,000 per year. Benefits to the University: The fee will enable the College to maintain and enhance its undergraduate accelerated program and continue its tradition of offering a nationally distinguished education in healthcare to meet the needs of the citizens of Arizona. Student Consultation and Support: All students subject to the new fixed cost pricing will be entering the accelerated second degree BSN program as new students in fiscal year 2009/2010. As such, no student consultation has taken place. Students will be made aware of this change through online communication (website and online information sessions) and live presentations that are routinely held throughout the year. RECOMMENDATION: The Arizona Board of Regents is requested to approve the implementation of a fixed cost of $28,000 including tuition, differential and fees for the14 month accelerated second degree BSN program for college graduates.

6 EXECUTIVE SUMMARY Page 6 of 9 UNIVERSITY: University of Arizona (UA) DIFFERENTIAL TUITION REQUEST College/School: College of Nursing Department: College of Nursing Program: BSN Program (Traditional) Is this for the graduate level, undergraduate level or all levels? GRADUATE LEVEL UNDERGRADUATE LEVEL X ALL LEVELS Is this a new differential tuition fee or an increase to an existing differential tuition fee? NEW DIFFERENTIAL TUITION FEE X Amount requested: $1,000 per semester EXISTING DIFFERENTIAL TUITION FEE Current Fee: $ Requested Fee: $ BACKGROUND: An undergraduate differential tuition fee of $1,000 per semester is proposed for the College of Nursing to include students enrolled in the traditional (4 semesters) BSN degree program. The College of Nursing already has in place special program fees for graduate students and many of the same cost drivers exist in the undergraduate program as well. Specifically, differential tuition will be used to enhance and sustain the specialized educational environment existing within the College for clinical simulation (Steele Innovative Learning Center). In addition, differential tuition fees will be used to offset escalating costs for clinical supplies, expand classroom and computer lab technology resources, support new methods for teaching and learning, and enable the College to hire and retain high caliber faculty. Nursing, consistent with other clinical disciplines, incurs higher instructional costs. Adoption of a differential tuition fee for traditional undergraduate Nursing students will more accurately reflect the cost of instruction. Clinical supervision of undergraduate nursing students must retain a ratio of 1 faculty instructor to every 8 student nurses. DISCUSSION: Access: The College of Nursing remains committed to providing access to undergraduate education for students seeking professional nursing careers. 20% of the fees will be set aside for financial aid to students who demonstrate need. The College of Nursing, through philanthropic sources, provides scholarships to a large number of undergraduate students and development efforts continue to focus upon student support. Quality of Education: Ranked among the top 6% of nursing programs in the country, the College of Nursing is considered a leader in nursing education.

7 EXECUTIVE SUMMARY Page 7 of 9 Market Pricing and Cost: With the proposed differential tuition fee, the cost of these programs will rank in middle third of the tuition and fees of our peers and remain highly affordable for undergraduate nursing education. Nursing is among the top three undergraduate majors at public research universities nationally in which a special program fee or tuition differential has been applied according to a report presented in October, 2008 at a conference of College and University Business Officers (CACUBO). Affordability: The additional fees will apply to all first degree (traditional) undergraduate nursing students. The College of Nursing enrolls upper division students and has transitioned its undergraduate traditional BSN program to four (4) semesters from five (5) semesters effective with students enrolling for the fall semester The change in the length of the program will positively impact upon the affordability of an undergraduate nursing education and the proposed differential tuition fee will not fully negate this benefit to students. Earnings Potential of Graduates: The market demand for nursing professionals remains very strong. The earnings potential for an entry level Registered Nurse with a baccalaureate degree ranges from $50,000 to $60,000 per year. Benefits to the University: The fee will enable the College to maintain and enhance its traditional undergraduate program and continue its practice of offering a nationally distinguished education in healthcare to meet the needs of the citizens of Arizona Student Consultation and Support: Students within the College of Nursing are well aware of the resource intensity of their education and are generally supportive of increased fees in order to maintain and enhance their educational experience. The adoption of the differential tuition will be communicated extensively to enrolled traditional undergraduate students through the student association, Student Nurses of the University of Arizona (SNUA). Student leaders will refer all students with expressed financial need resulting from this differential tuition to the College of Nursing Office of Student Affairs. Every effort will be made to assuage any undue financial burden emanating from this fee. RECOMMENDATION: The Arizona Board of Regents is requested to approve the implementation of a differential tuition fee of $1,000 per semester for the traditional undergraduate BSN program.

8 EXECUTIVE SUMMARY Page 8 of 9 UNIVERSITY: University of Arizona (UA) PROGRAM FEE REQUEST College/School: College of Nursing Department: College of Nursing Program: Doctor of Nursing Practice (DNP) & Ph.D. Program Is this for the graduate level, undergraduate level or all levels? GRADUATE LEVEL X UNDERGRADUATE LEVEL ALL LEVELS Is this a new program fee or an increase to an existing program fee? NEW PROGRAM FEE Amount requested: $ EXISTING PROGRAM FEE X Current Fee: $2,000 per semester Requested Fee: $2,600 per semester BACKGROUND: An increase from a special program fee of $2,000 per semester, to a program fee of $2,600 per semester, for the Doctor of Nursing Practice (DNP) and Ph.D. programs is proposed for the College of Nursing. The program fees will be used to enhance and sustain the specialized educational environment existing within the College for clinical simulation (Steele Innovative Learning Center). In addition, program fees will be used to offset escalating costs for clinical supplies, expand computer lab technology resources, support new methods for teaching and learning, and enable the College to hire and retain high caliber faculty. Nursing, consistent with other clinical disciplines, incurs higher instructional costs. Doctor of Nursing Practice students require clinical preceptors for internship experiences and the cost for this oversight is increasing over time. As well, Doctor of Nursing Practice students must track their clinical exposures to ensure adequate breadth and depth of experience and the tracking software is costly and resource intensive to administer. Students enrolled in both the DNP and Ph.D. programs receive all of their didactic coursework via the D2L on line learning platform. The faculty development and support, technical support for students, hardware and software and other personnel costs of the online learning program account for significant expenses that have escalated over time. DISCUSSION: Access: The College of Nursing remains committed to providing access to Ph.D. and DNP education for students seeking doctoral preparation to embark on careers as nurse scientists and nursing faculty as well as professional advanced practice nurse leaders. 20% of the fees will be set aside for financial aid to students who demonstrate need. The College of Nursing, through philanthropic sources, provides scholarships to a large number of graduate students and development efforts continue to focus upon student support. Quality of Education: Ranked among the top 6% of nursing programs in the country, the College of Nursing is considered a leader in nursing education.

9 EXECUTIVE SUMMARY Page 9 of 9 Market Pricing and Cost: With the proposed program fee, the cost of these programs will rank in the middle third of the tuition and fees of our peers and remain highly affordable for doctoral nursing education. Peer institutions such as the University of Washington and the University of Iowa have in place a significant program differential for DNP education. Affordability: The Ph.D. and DNP programs will remain highly affordable for students seeking doctoral preparation and advanced practice training within the context of a terminal degree program. Many students in the Ph.D. program will qualify for the federal Nurse Faculty Loan Program which provides significant scholarship support in the form of loans which may be forgiven when a student embarks upon a career as a faculty member in a College of Nursing at the University or Community College level. The DNP program is gaining momentum in student preference and the increase in the program fee should have limited deleterious impact upon the ability of students to afford this educational option. Earnings Potential of Graduates: The market demand for nursing faculty members and advanced practice nursing professionals remains very strong. The earnings potential for an entry level nursing faculty member is $65,000 to $75,000. An advanced practice nurse with a nurse practitioner certification and a Doctor of Nursing Practice degree may expect a starting salary of $85,000 to $100,000. Benefits to the University: The differential tuition fees will enable the College to maintain and enhance its Ph.D. and Doctor of Nursing Practice programs and continue its 50 year tradition of offering a nationally distinguished education in healthcare to meet the needs of the citizens of Arizona Student Consultation and Support: Students enrolled in the Ph.D. and DNP programs are primarily off campus with on campus presence limited to the two week research intensive summer experience (RISE). Students are aware of the extensive and costly technology support associated with the maintenance of the programs and are generally supportive of fee increases in order to sustain and enhance the quality of their educational experience. All students with expressed financial need resulting from this increased program fee will be directed to the College of Nursing Office of Student Affairs. Every effort will be made to assuage any undue financial burden emanating from this fee increase. RECOMMENDATION: The Arizona Board of Regents is requested to approve an increase from a special program fee of $2,000 per semester, to a program fee of $2,600 per semester for the Doctor of Nursing Practice (DNP) and Ph.D. programs.

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