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Revised: November 15, 2000

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1. Overview

   This review of current policies for determination and distribution of segregated university fees (SUF) in the University of Wisconsin System institutions recognizes the involvement in the determination of SUF by the students, chancellors, the UW System President and the Board of Regents as provided in Section 36.09 Wisconsin Statutes. It presents the objectives, constraints and rationale related to SUF and sets forth the basic systemwide policy.

   Related policies:

   RPD 30-5 Policy and Procedures for Segregated University Fees

   RPD 30-3 Guidelines for Student Governance

   FAP - Segregated University Fees (F50)

   FAP - Student Services Funding (G15)

   FAP - Auxiliary Enterprises Support Services Chargebacks (F42)

   FAP - Physical Plant Services Chargebacks (F25)

   FAP - Child Care Centers (G38)

   FAP - Financial Management of Auxiliary Operations (F43)

   
   

2. Background

   1. Segregated University Fee

      The term Segregated University Fee(s) (SUF) describes charges in addition to instructional fees assessed to all students for services, programs and facilities that support the primary mission of the university. Segregated university fees may only be used to support student services activities as defined by the UW System Uniform Chart of Accounts and further limited by FAP - Student Services Funding  (G15).

      HISTORY: This policy paper was first drafted, in consultation with students and administrators as biennial budget policy papers for the 1975-77 and 1977-79 biennia.

      The UW System recognizes the students' responsibility for the disposition of those student fees which constitute substantial support for campus student activities, and has designated those fees as "allocable" SUF. It recognizes other fees as "nonallocable" for policy and fiscal reasons. In general, allocable fees are those that support student activities, while non-allocable fees support fixed obligations, i.e., commitments for contracts, debt retirement, and university programs and campus missions requiring stable funding. The "nonallocable" distinction establishes that certain segregated fees are outside the meaning of "student activities" in the statutory delegation of responsibility to students in Section 36.09(5) Wisconsin Statutes and are not available for disposition through the SUF allocation process. The intent of this policy is to provide a balance between the responsibility of students to allocate the SUF to student activities and the responsibility of the administration to manage operations that rely on SUF funding for substantial support. This distinction and its implications for student participation in budget formulation and review are described more fully in Section III.

      The distribution of SUF among various operation differs from campus to campus, reflecting the priorities of students and campus administration.

      
      

   2. Constraints: Statutes and Regent Policy

      Students are delegated certain responsibilities for student life, services and interests by Section 36.09(5) Wisconsin Statutes. That statute provides:

      The students of each institution or campus, subject to the responsibilities and powers of the Board, the President, the Chancellor and the faculty shall be active participants in the immediate governance of and policy development for such institutions. As such, students shall have primary responsibility for formulation and review of policies concerning student life, services and interests. Students in consultation with the chancellor and subject to the final confirmation of the board shall have the responsibility for the disposition of those student fees which constitute substantial support for campus student activities. The students of each institution or campus shall have the right to organize themselves in a manner they determine and to select their representatives to participate in institutional governance. (Emphasis added)

      The UW System Guidelines for Student Governance (Guidelines), approved by the Board of Regents in November, 1986 (RPD 30-3), discuss the responsibility of students for SUF allocations. Section 36.09(5) Wisconsin Statutes gives students the right to organize themselves to participate in institutional governance. Hence, the committee structure for allocating SUF varies among the institutions in accordance with their different histories and traditions. Segregated University Fee Allocations Committee (SUFAC) membership ranges from elected, all student committees, to standing committees of the Student Senate, to joint committees of students, faculty and staff with a majority of student members. Procedures for hearings on the various budgets are established according to the guidelines on each campus. Most of the committees report to the Student Senate, which then approves the budget for submission to the Chancellor.

      The minimum level of student participation in the SUF budget process is determined by the students themselves. Students and administrators are expected to communicate and cooperate fully in the development of SUF budgets, policies and programs that will best serve the needs of the students and the university.

      Budget information will be provided to SUFAC by the campus administration. SUFAC will be provided annually with information relevant to the SUF budget instructions on that campus, including, but not limited to enrollment projections, SUF revenue projections, and reserve balances.

      The Guidelines direct Chancellors, in consultation with the students:

      to define the allocable and nonallocable portions of the student fee with particularity, observing that this area shall not and cannot without appropriate policy action by the institution and board include withdrawal of fee support from ongoing fiscal commitments such as debt service, or the support of staff personnel on continuing appointments. Students, acting through the SUF Allocations Committee (SUFAC) or other designated institution-wide body, shall be responsible for formulation of the allocable SUF budget, subject to the responsibilities of the chancellor.

      The Guidelines also provide an appeals process for disputes over the allocable portion of SUF. If the Chancellor disagrees with the students' recommended disposition of the allocable portion of the SUF:

      the basis for denying or changing the student decision shall be substantial and shall be communicated by the chancellor to the recommending student agency in a timely manner. The chancellor shall discuss any changes s/he recommends to the SUF budget for student consideration and decision before the chancellor forwards the institution's budget to System Administration and the Regents.

      If the students disagree with the Chancellor's determination on allocable fees, and the disagreement is not reconciled after further discussion at the institutional level, both the students' and the Chancellor's budgets are to be presented to the UW System President's Office by April 1. The President or his or her designee will attempt to mediate the dispute before forwarding it to the Board of Regents with a recommendation for its resolution. (Criteria for the Board's use in considering appeals are set forth in the Guidelines.) Such budget disputes will be considered by the Board only prior to action on the annual budget.

   
   

3. Policy on the Allocable and Nonallocable Distinction Within SUF

   The Board distinguishes between allocable and nonallocable portions of the SUF for the purpose of defining the student role in the SUF process. Students have primary responsibility for distributing the allocable fees, subject to the responsibilities of the Chancellor and the Board. Students have an advisory role in the budgeting of nonallocable fees; the final decisions are at the discretion of the Chancellor. The Board has the ultimate authority to determine the budgeting of Segregated University Fees.

   In general terms, the nonallocable charges represent claims on SUF revenue that are determined by contracts, personnel commitments, bond agreements, conference commitments, operation of physical plants, etc. The Chancellor shall assure that the annual budget proposals for the nonallocable portion of SUF will generate sufficient monies to cover these commitments. The allocable portion of the SUF includes monies designated for student activities, such as student organizations, concerts, some athletics and recreation. In making their allocations students should recognize the need of the institution to maintain viable programs supported by the SUF in the fine arts, child care, athletics and certain other programs traditionally supported by the SUF. More specifically:

   1. The nonallocable portion of the SUF represents commitments to cover:
      • debt service and approved capital projects.

      • expense to enable all SUF facilities and activities to present an operational building ready for use.

      • base operating funding of student centers/unions, arenas, stadia, etc., not covered by direct user charges, including municipal services, adequate funding to provide for deferred maintenance, debt service contingencies and operating contingencies (as defined in the reserve policy), and business services not centrally provided.

      • athletic and intramural support, to the extent that athletic schedules and/or personnel commitments dictate SUF support for athletics and intramurals, at the levels previously approved by the SUFAC and the Chancellor for the two years after the current budget year (increases permitted).

      • minimum student health program as determined by the Chancellor.

      • other items as determined by the institution, consistent with this definition and System policies, such as personnel contracts, child care (See IV.B.below), textbook rental.

   2. The allocable portion constitutes that part of the SUF which provides the major support for a variety of student activities and services. For example:

      • student organization support;

      • student activities;

      • concerts and lectures;

      • athletic and intramural support for the third year of a three year budget, and increases above the level of the first two years approved by the SUFAC and the Chancellor;

      • student health services above the minimum module;

      • other items consistent with this definition and System policies, as determined by the institution, such as child care (See IV.B. below).

      Both allocable and nonallocable fees are used to fund certain activities and services; often they are not clearly separable for the purposes of seeking student advice. Institutions must have policies delineating the role of students in the budget review process to ensure that students are given full information on the uses of non-allocable SUF and opportunities for input to the budget process. Final recommendations on nonallocable budgets and user charge-supported budgets rest with the campus administration.

      
      

4. Regent and System Administration Policies
   1. General Administrative Policies

      The following statements summarize policy guidelines that have developed over time, and represent current Regent and System Administration policy.

      1. The Board of Regents has final authority as to the recommended amount of SUF for any campus and its distribution.

      2. Where allocable SUF supports personnel, any proposed reduction of SUF support due to student recommended alternative uses of allocable SUF must allow for proper employee notice and treatment, in accordance with Board approved policies.

      3. SUF shall not be assessed or charged for 1) academic credit producing activities, 2) student services determined to be essential to the basic mission of the University and 3) normal campus-wide activities and functions that service the entire institution, such as campus-wide, centrally provided physical plant and institutional support (See FAP Auxiliary Enterprises Support Services Chargebacks (F42) and FAP Student Services Funding (G15).)

      4. All budgetary recommendations and subsequent collection and expenditure of SUF must comply with the requirements of the United States Constitution and the Wisconsin Constitution and must follow State and UW System statutory and regulatory requirements. (See FAP - Segregated University Fees (F50).)

      5. Any proposed major remodeling or major new construction project as defined by section 20.924(1)(a) Wisconsin Statutes that will increase the nonallocable portion of the SUF on any campus shall be reviewed by the Chancellor with appropriate student representation. There shall be specific action by the SUFAC on the project in question, which will be presented as part of the required information for the Regents at the time the project is advanced for approval.

      6. Student referenda may not be used, directly or indirectly, to allocate SUF funds to student organizations for extracurricular speech or expressive activities.

   2. Special Program Policies

      In order to provide a basic level of stability in student health services, athletics and intramurals, and child care, the Board of Regents has approved special policies as follows:

      Student Health The Chancellor of each campus has responsibility for determining the minimum level of student health service. SUFAC may increase the level of service with allocable SUF funds. The Chancellor or designee will consult with SUFAC and/or the appropriate student health committee as to the appropriate programmatic level of student health care on the campus. Should the SUFAC desire to appeal the Chancellor's decision on the minimum level of service, a request must be made through the appeal process defined in the Guidelines, §II.B. (RPD 30-3).

      Athletics and Intramurals To the extent that guidelines for termination or non-renewal notice to personnel must be followed, and contracts for schedules exist, the SUF allocation for athletics and intramurals is nonallocable. A three-year budget review is required at the time the annual budget for athletics and intramurals is approved by SUFAC. Since the third year is normally beyond the time requirement of contracts for personnel notices, the budget for athletics and intramurals for the third year after the current budget year is allocable, except for any outstanding schedule commitments or personnel contracts.

      The foregoing is not intended to prevent the students from approving an increase in the program level during the first two years of the three year cycle. It also is not intended to prevent a Chancellor from approving a decrease in the program level during the first two years of the three year cycle. The Chancellor's action must be accompanied by a redetermination by the SUFAC of the level of third year support.

      Child Care It is the policy of the Regents that:

      "as an alternative to community child care when it does not meet the needs of the institution or unit, each university should set a goal of seeing that top quality, low cost child care and extended child care services, preferably campus based, are available to the children of students, faculty and staff." (Equal Opportunities in Education Policy adopted April 12, 1974; amended October 7, 1983. RPD 14-3)

      The Chancellors and SUFAC committees are encouraged to review with special care, funding requests for student child care services. Consideration should be given to utilizing nonallocable SUF funding or requiring a three year budget process comparable to that required for athletics and intramurals. Child care allocations derived from SUF funds shall be identified separately in the annual institutional budget review process. (See also: FAP - Child Care Centers  (G38))