Semester-Calendar System - California State University, Los Angeles

University’s conversion process, that institution experienced a $16 – $22M IT conversion
expense with a $4.2M post-implementation expense for instructional technology.
It is extremely difficult to accurately project the absolute cost of the UC transition to
semesters. Consequently, the Semester-Conversion Taskforce recommends that the
Semester-Transition Director / Vice Provost be given the flexibility to carry over unexpended
dollars each year throughout the transition process. It is also assumed that the Director will
be responsible for adhering to the budget processes during the transition years required by
other units within the University.
7.2 STEADY-STATE IMPLICATIONS
The revenue implications of the transition are difficult to accurately estimate. The University
cash flow is impacted by a number of forces that work in different directions. Theoretically,
interest payments work in favor of a transition to semesters, as most tuition payments on a
semester schedule will be made earlier and in larger amounts.
The situation, however, is complex. The items below highlight central aspects that the
semester conversion might produce on enrollment:
• Ease of transfer is likely to make the University of Cincinnati a more attractive
destination for transfer students. This will tend to boost the enrollment once the
semester system is in place;
• The semester calendar likely will allow for enhanced summer school enrollment by
visiting students. The increased enrollment must be reflected in the summer teaching
budgets allocated to individual colleges;
• A percentage of our current students (not possible to predict) will strive to graduate
before the semester-system is in place, which will somewhat weaken enrollment in
the upper-division during the transition period;
• Late payments and subsequent credit losses are likely to increase as a result of the
tuition-per-term being increased by 50%. This is especially the case for students
paying out-of-pocket. The fact that 86 % of undergraduates receive aid, however, is
likely to buffer UC credit losses;
• A drop in enrollment is expected in part-time students who pay out-of-pocket. This
factor may be alleviated by an effective marketing of payment plans; and
• A drop in competitiveness of industry-oriented courses, caused by employers
requiring a passing grade before processing a reimbursement. Colleges are
encouraged to use the flexibility allowed by the semester calendar when designing
industry-oriented short courses.
The success of the semester conversion relies heavily on how well the University can
manage retention, enrollment, and payments throughout the transition process. The fact
that a one-percent (1%) fluctuation in retention corresponds to a $2M (approximate)
fluctuation in tuition revenue shows how critical this management aspect actually is. The
above fluctuations are, to the same order of magnitude, further reflected in subsidies.
The proposal relies on a strong investment in advising and communication. The investment
in advising is approximately $1.6 M dollars per year. Should this investment results in an
enhanced retention of 0.7 % or more, the University should consider retaining the advising
organization after the transition based on a cost benefit analysis.
Aspects of the course-approval procedures described above might be deemed worth
maintaining after the transition (i.e., cross-college disciplinary committees, a University-wide
committee such as the UTUCC, etc.).
Taskforce Plan for Converting to a Semester-Calendar System (Final Report) 40 (43)