Special Revenue Return Programs Policy
Special Revenue Return Programs Policy
Policy Type: Administrative Policy
Date Adopted: November 17, 2021
Version: 1.0
Review Cycle: Every 5 years
Date Last Reviewed: November 17, 2021
Office Responsible: Office of the Provost
Approving Committee: Cabinet
Policy Summary
Effective Date: July 1, 2022
Renewal Date: July 1, 2027
Note: Programs that offered courses prior to July 1, 2022 will continue under the policy in place when they were established.
Policy Goals
The goals of this policy are to:
- Support the development costs of new, in-demand degree programs with robust enrollment potential.
- Avoid significant changes in the budget allocated from one year to the next to support the academic unit’s ability to manage program finances.
- Gradually make all programs—new and old—receive the same level (%) of tuition revenue.
- Provide a path for existing programs with significant new elements that will drive enrollment increases to receive funding like new degree programs. To be considered in this category, the program would have to attract new learners to the University and incur costs beyond the normal operating costs of the program.
Scope
Academic units
Policy Statement
New Degree Programs
The Budget Process at the University of Michigan–Flint supports the development and implementation of new academic programs by allocating 80% of the tuition revenue generated to the program for the first four years. New programs can be undergraduate, graduate or doctoral degree programs. In order to qualify for the 80% tuition return, the program must be a completely new degree program (i.e., not repackaging of existing programs).
New Programs that Don’t Meet the Definition of a New Degree Program
The Dean of each School or College can request consideration for an 80% return on academic programs that are not new. However, they will need to articulate the new element of such a program that will generate additional enrollment and revenue, and that the establishment of the new element will incur start-up costs (course development, marketing, equipment, etc.). New courses included must be identifiable within Banner so revenue can be tracked and distributed.
Process
For a new program to receive 80% of the tuition revenue, the items listed below must be submitted by the Dean to the Provost in December to be considered for the following Fall (for example, December 2021 for implementation in Fall 2022). The Provost will bring proposal he/she supports to the Cabinet for review.
Required Materials
- Description of the new program
- List of courses included (eventually the Budget Office will need a list of course and section numbers to administer this)
- 10-Year Budget Plan (request current form from Financial Services & Budget)
- Additional space requirements if applicable
- Contact Name, Phone Number and E-mail Address
Required Approvals
- Program Approval: Dean and Provost
- Financial Viability and Space Availability Approval: Cabinet
Rate of Return by Year
| Year | Revenue Return Rate |
|---|---|
| Year 1 | 80% of total revenue target |
| Year 2 | 80% of total revenue target |
| Year 3 | 80% of total revenue target |
| Year 4 | 80% of total revenue target |
| Year 5 | 75% of total revenue target |
| Year 6 | 70% of total revenue target |
| Year 7 | 65% of total revenue target |
| Year 8 | 60% of total revenue target |
| Year 9 and beyond | Revert to 60% on the marginal change to revenue target |
Version History
| Date of Change | Version | Description of Change |
|---|---|---|
| November 17, 2021 | 1.0 | Adopted |
For questions about the Special Revenue Return Programs Policy, please contact the Office of the Provost.