ARIZONA STATE SENATE
RESEARCH STAFF @ B
+ 1912 '
TO: JOINT LEGISLATIVE AUDIT COMMITTEE DAWN WALLACE
Senator Robert Blendu, Cochair LEGISLATIVE RESEARCH ANALYST
HIGHER EDUCATIONCOMMITTEE
Representative John Nelson, Cochair Telephone. ( 602) 926- 3 17 I
Facs~ m~ l( e6.0 2) 926- 3833
DATE: January 7,2008
SUBJECT: Sunset Review of the Western Interstate Commission for Hipher Education ( WICHE)
Attached is the final report of the sunset review of the WICHE, which was conducted by the
Senate Higher Education and House of Representatives Higher Education Committee of Reference.
Pursuant to Title 41, Chapter 27, Arizona Revised Statutes, the Committee of Reference,
after conducting a sunset review on December 11, 2007, recommends that the WICHE be
continued for ten years.
This report has been distributed to the following individuals and agencies:
Governor of the State of Arizona
The Honorable Janet Napolitano
President of the Senate
Senator Timothy S. Bee
Senate Members
Senator Tom O'Halleran, Cochair
Senator Paula Aboud
Senator Linda Gray
Senator Charlene Pesquiera
Senator Jay Tibshraeny
Arizona Board of Regents
Department of Library, Archives & Public Records
Senate Republican Staff
Senate Democratic Staff
Senate Research Staff
Senate Resource Center
Speaker of the House of Representatives
Representative James P. Weiers
House Members
Representative Nancy McLain, Cochair
Representative Ed Ableser
Representative Nancy Barto
Representative Jennifer Burns
Representative Chad Campbell
House Majority Staff
House Democratic Staff
House Majority Research Staff
Chief Clerk
D W/ j as
Attachment
Senate Higher Education andHouse Higher Education
Committee of Reference Report
WESTERN INTERSTATE COMMISSION FOR HIGHER EDUCATION
Background
Pursuant to 4 1- 2953, Arizona Revised Statutes, the Joint Legislative Audit Committee ( JLAC)
assigned the sunset review of the Western Interstate Commission for Higher Education ( WICHE) to the
Senate Higher Education and House Higher Education Committee of Reference.
WICHE is a regional organization created by the Western Regional Education Compact in the
1950s. WICHE was established to facilitate resource sharing among the higher education systems of the
western states. WICHE began operations in 1953 in Eugene, Oregon, and moved to Boulder, Colorado,
in 1955. WICHE is governed by three gubernatorally- appointed commissioners from each state. Under
terms of the compact, each state commits to support WICHEYs basic operations through annual
administrative fees established by the full Commission. Fifteen western states comprise WICHE: New
Mexico, Montana, Arizona, Utah, Oregon, Colorado, Wyoming, Idaho, Alaska, Washington, California,
Nevada, Hawaii, North Dakota and South Dakota.
Arizona's participation in the WICHE Program began in 1953 when the state entered into the
compact. Arizona's membership in WICHE includes access to three student exchange programs, policy
analysis and technology and research programs. The Arizona WICHE Program is concentrated
significantly in two student exchange programs: I) Professional Student Exchange Program ( PSEP) and
2) Western Undergraduate Exchange Program ( WUE). Additionally, Arizona is a participating state in
the Western Regional Graduate Program ( WRG). The Arizona WICHE Program is administered by the
Arizona Board of Regents ( ABOR).
Since the Arizona university system does not offer programs in dentistry, occupational therapy,
optometry, osteopathy, physician assistant or veterinary medicine, the PSEP allows an eligible Arizona
resident to enroll in one of these professional medical programs in another state ( within the compact), or
at any in- state private institution that offers these programs. To be eligible, the student must have a 2.5
G. P. A, be a citizen of the United States, a resident of Arizona for the last five consecutive years and
fulfill all necessary academic requirements for professional coursework. The student receives preference
in the admissions process and pays the resident tuition rate at the public institution. A student who
participates in PSEP agrees to practice his or her profession in Arizona one year for each year of
WICHE financial support, or serve six months in an underserved Arizona community ( determined by
the profession's licensing entity). Participants who fail to meet their service requirements must repay 50
percent of the financial support received plus interest. The PSEP receives an annual state General Fund
appropriation for subsidies to the public or private institutions that the Arizona resident attends. The
WICHE subsidy is typically negotiated with participating institutions but it is generally equitable to the
difference between nonresident tuition and resident tuition, or up to two- thirds the private university
tuition rate.
Additionally, the WUE Program allows eligible Arizona residents to enroll in selected programs
at participating two- and four- year public postsecondary institutions for programs not offered in Arizona
at 150 percent of the host institution's regular resident tuition rate. Also, Arizona residents who are
seeking graduate degrees may apply for the WRG Program and enroll in selected programs in
participating public colleges or universities in 14 western states at the host institution's regular resident
rates of tuition. The WUE and WRG programs do not receive state funded subsidies.
Budget
The state provides state General Fund monies for the WICHE Program in two parts: 1) PSEP
student subsidies and 2) WICHE administrative fees. The PSEP student subsidies and the administrative
fees are set by the Commission, with input from participating WICHE states and institutions.
According to information provided by the ABOR, the following tables highlight the number of
students who were supported in the PSEP from FYs 2001- 2002 through 2006- 2007, the state
appropriation and average subsidy per student.
Committee Sunset Review Procedures
PSEP State Appropriations
The Committee of Reference held one public meeting on Tuesday, December 11, 2007, to
review the sunset factors prepared by the ABOR, as required by A. R. S. tj 41 - 2954, subsection E, and to
receive public testimony. The Committee of Reference also received testimony from the following:
Joel Sideman, Executive Director, Arizona Board of Regents.
Louise Lynch, WICHE Administrator, Arizona Board of Regents.
Year
200 1- 2002
2002- 2003
2003- 2004
2004- 2005
2005- 2006
2006- 2007
2007- 2008
Committee of Reference Recommendations
Average
Subsidy Per
Student
$ 16,330
$ 17,841
$ 1 8,063
$ 1 8,523
$ 19,517
$ 19,623
$ 20,271
The Committee of Reference recommends that the WICHE be continued for ten years.
Administrative
Fees
$ 99,000
$ 103,000
$ 103,000
$ 103,000
$ 108,000
$ 1 12,000
$ 1 16,000
Subsidy
Appropriation
$ 3,282,400
$ 2,908,100
$ 2,908,100
$ 2,908,100
$ 2,908,100
$ 3,571,353
$ 4,115,034
Attachments
Students
Supported
20 1
163
161
157
149
183
203
1. Committee Agenda Notice
2. Committee of Reference Meeting Minutes
3. COR Presentation Handouts
4. Chairman's Letter requesting sunset factors pursuant to A. R. S. tj 41- 2954
5. ABOR Response
COMMITTEE OF
REFERENCE
AGENDA NOTICE
Interim agendas can be obtained via the Internet at http: llwww. azleg. state. az. usllnterimCommittees. asp
ARIZONA STATE LEGISLATURE
INTERIM MEETING NOTICE
OPEN TO THE PUBLIC
SENATE HIGHER EDUCATION AND HOUSE HIGHER EDUCATION COMMITTEE OF
REFERENCE
Date: Tuesday, December 11,2007
Time: 1 : 30 P. M.
Place: SHR I
AGENDA
1. Call to Order
2. Introduction of Members
3. Arizona Commission for Postsecondary Education Sunset Audit
Presentation by the Auditor General
Agency Response
Public Testimony
Discussion and Recommendations by the Committee of Reference
4. Western Interstate Commission for Higher Education ( WICHE)
Presentation by the Arizona Board of Regents
Public Testimony
Discussion and Recommendations by the Committee of Reference
5. Adjourn
Members:
Senator Tom O'Halleran, Co- Chair
Senator Paula Aboud
Senator Linda Gray
Senator Charlene Pesquiera
Senator Jay Tibshraeny
Representative Nancy McLain, Co- Chair
Representative Ed Ableser
Representative Nancy Barto
Representative Jennifer Burns
Representative Chad Campbell
Persons with a disability may request a reasonable accommodation such as a sign language interpreter, by contacting the
Senate Secretary's Office: ( 602) 926- 4231 ( voice). Requests should be made as early as possible to allow time to arrange the accommodation.
Page 1 of 1
COMMITTEE OF
REFERENCE
MEETING MINUTES
ARIZONA STATE LEGISLATURE
SENATE HIGHER EDUCATION AND HOUSE HIGHER EDUCATION
COMMITTEE OF REFERENCE
Minutes of the Meeting
Tuesday, December 11,2007
1: 30 p. m., Senate Hearing Room 1
Members Present:
Senator Tom O'Halleran, Cochair Representative Nancy McLain, Cochair
Senator Paula Aboud Representative Ed Ableser
Senator Linda Gray Representative Nancy Barto
Senator Charlene Pesquiera Representative Jennifer Burns
Representative Chad Campbell
Members Absent:
Senator Jay Tibshraeny
Staff:
Dawn Wallace, Senate Higher Education Research Analyst
Cochairman O'Halleran called the meeting to order at 1: 55 p. m. and attendance was
noted.
Arizona Commission for Postsecondary Education Sunset Audit
Shan Hays, Performance Audit Manager, Auditor General's Office, gave a
presentation on the findings of the Auditor General's Office in its performance audit and
sunset review of the Postsecondary Education Commission and submitted the handout
( Attachment A) entitled Postsecondary Education Commission. Mr. Hays answered
questions posed by the Committee.
April Osborn, Executive Director, Arizona Commission for Postsecondary
Education, gave the Commission's response to the Auditor Generals Sunset Audit and
answered questions posed by the Committee.
John Mangum, Arizona Private Postsecondary Schools Association, testified in
support of the continuation of the Commission.
Senate Higher Education and House Higher
Education Committee of Reference
December 1 I, 2007
Page 1
Don Isaacson, lndependent Colleges and Universities of Arizona, testified in
support of the continuation of the Commission.
Senator Linda Gray moved that the Senate Higher Education and
House Higher Education Committee of Reference recommend that
the Arizona Commission for Postsecondary Education be continued
for ten years until June 30,2018. The motion passed by voice vote.
Western Interstate Commission for Hiqher Education ( WICHE)
Dawn Wallace, Senate Higher Education Research Analyst, gave an overview of the
WICHE program and answered questions posed by the Committee.
Joel Sideman, Executive Director, Arizona Board of Regents, gave informational
testimony pertaining to the WlCHE program and answered questions posed by the
Committee.
Louise Lynch, Arizona Board of Regents, answered questions posed by the
Committee.
Don Isaacson, lndependent Colleges and Universities of Arizona, testified in
support of the WlCHE program.
Senator Linda Gray moved that the Senate Higher Education and
House Higher Education Committee of Reference recommend that
the WlCHE program be continued for ten years until June 30, 2018.
The motion passed by voice vote.
There being no further business, the meeting was adjourned at 3: 02 p. m.
Respectfully submitted,
Committee Secretary
( Tapes and attachments on file in the Secretary of the Senate's Office/ Resource Center, Room 11 5.)
Senate Higher Education and House Higher
Education Committee of Reference
December 11,2007
Page 2
COMMITTEE OF REFERENCE
PRESENTATION
HANDOUT
ARIZONA STATE SENATE
RESEARCH STAFF
TO: MEMBERS OF THE SENATE DAWN WALLACE
AND HOUSE HIGHER EDUCATION LEGISLATIVE RESEARCH ANALYST
HIGHER EDUCATION COMMITTEE
COMMITTEE OF REFERENCE Telephone ( 602) 926- 3 171
DATE: December 5,2007
SUBJECT: Sunset Review of the Western Interstate Commission for Higher Education ( WICHE)
Laws 1998, Chapter 40, Section 2, provides a termination date of July 1,2008, for the Arizona
WICHE Program. Pursuant to A. R. S. 5 41- 2954, the Committee of Reference is required to consider
certain sunset factors in deciding whether to recommend continuance, modification or ternination of an
agency or program. The following is attached for your review:
Summary of the WICHE Program with sunset factor response highlights.
A chart illustrating the number of WICHE students attending out- of- state public and private
schools and in- state private schools for academic year 2007- 2008.
The Arizona Board of Regents ( ABOR) response to the statutory questions required as part of
the sunset review. This information was sent to your offices under a separate memo on
September 1 1,2007; however, this attachment includes a more current version of the WICHE
Professional Student Exchange Program.
The WICHE sunset review is assigned to the Senate Higher Education and House Higher
Education Committee of Rcference. The meeting is scheduled for December 11,2007, at 1 : 30 p. m. in
Senate Hearing Room 1.
If you have any questions or need further assistance, please feel free to contact me.
D W/ j as
Attachment
Senate and House Higher Education
Committee Of Reference
SUNSET REVIEW OF THE
WESTERN INTERSTATE COMMISSION FOR HIGHER EDUCATION
Background
WICHE is a regional organization created by the Western Regional Education Compact in the
1950s. WICHE was established to facilitate resource sharing among the higher education systems of the
western states. WICHE began operations in 1953 in Eugene, Oregon, and moved to Boulder, Colorado,
in 1955. WICHE is governed by three gubernatorally- appointed commissioners from each state. Under
terms of the compact, each state commits to support WICHEYs basic operations through annual
administrative fees established by the full Commission. Fifteen western states comprise WICHE: New
Mexico, Montana, Arizona, Utah, Oregon, Colorado, Wyoming, Idaho, Alaska, Washington, California,
Nevada, Hawaii, North Dakota and South Dakota.
Arizona's participation in the WICHE Program began in 1953 when the state entered into the
compact. Arizona's membership in WICHE includes access to three student exchange programs, policy
analysis and technology and research programs. The Arizona WICHE Program is concentrated
significantly in two student exchange programs: 1) Professional Student Exchange Program ( PSEP) and
2) Western Undergraduate Exchange Program ( WE). Additionally, Arizona is a participating state in
the Western Regional Graduate Program ( WRG). The Arizona WICHE program is administered within
the ABOR.
Since the Arizona university system does not offer programs in dentistry, occupational therapy,
optometry, osteopathy, physician assistant or veterinary medicine, the PSEP Program allows an eligible
Arizona resident to enroll in one of these professional medical programs in another state ( within the
compact), or at any in- state private institution that offers these programs. To be eligible, the student
must have a 2.5 G. P. A, be a citizen of the United States, a resident of Arizona for the last five
consecutive years and fulfill all necessary academic requirements for professional coursework. The
student receives preference in the admissions process and pays the resident tuition rate at the public
institution. A student who participates in PSEP agrees to practice his or her profession in Arizona one
year for each year of WICHE financial support, or serve six months in an underserved Arizona
community ( determined by the profession's licensing entity). Participants who fail to meet their service
requirements must repay 50 percent of the financial support received plus interest. The PSEP Program
receives an annual state General Fund appropriation for subsidies to the public or private institutions
that the Arizona resident attends ( see Table 1 below). The WICHE subsidy is typically negotiated with
participating institutions but it is generally equitable to the difference between nonresident tuition and
resident tuition, or up to two- thirds the private university tuition rate.
Additionally, the WUE Program allows eligible Arizona residents to enroll in selected programs
at participating two- and four- year public postsecondary institutions for programs not offered in Arizona
at 150 percent of the host institution's regular resident tuition rate. Also, Arizona residents who are
seeking graduate degrees may apply for the WRG Program and enroll in selected programs in
participating public colleges or universities in 14 western states at the host institution's regular resident
rates of tuition. The WUE and WRG programs do not receive state funded subsidies.
1
State Funding
The state provides state General Fund monies for the WICHE Program in two parts: 1) PSEP
student subsidies and 2) WICHE administrative fees. The PSEP student subsidies and the administrative
fees are set by the Commission, with input from participating WICHE states and institutions.
According to information provided by the ABOR, the following tables highlight the number of
students that were supported in the PSEP Program from FYs 2001 - 2002 through 2006- 2007, the state
appropriation and average subsidy per student.
Sunset Factors Response Highlights
During the 2006- 2007 academic year, Table 2 identifies the number of students participating in
the PSEP Program who were supported in each field:
During the 2006- 2007 academic year, 2,348 students attended Arizona community colleges and
universities through the W E Program. In the same year, 789 Arizona residents attended out- of-state
schools through the W E Program.
The number of certified, eligible PSEP applicants annually exceeds the number of students
supported with the state appropriation.
The PSEP Program has supported professional educational opportunities to approximately 2,500
Arizona residents since 1953.
On average, over the last five years, 79 percent of PSEP graduates have returned to Arizona to
practice their profession.
Complaints have been limited to two to four annually, relating to residency status
determinations.
CHAIRMAN'S LETTER
FOR
SUNSET FACTORS
Senator Tom O'Halleran
I DISTRICT 1
STATE SENATOR
FORTY- EIGHTH LEGISLATURE
CAPITOL COMPLEX. SENATE BUILDING
PHOENIX. ARIZONA 85007- 2890
PHONE: ( 602) 926- 4079
FAX: ( 602) 417- 3101
EMAIL: tohaller@ azleg. gov
COMMITTEES:
Higher Education. Chairman
Education K- 12
Health. Vice- chairman
June 20, 2007
Capitol Complex
1700 West Washington
Pitoenix, AZ 85007
Mr. Robert Bulla, President
Arizona Board of Regents
2020 N. Central Ave., Suite 230
Phoenix, AZ 85004- 4593
Dear Mr. Bulla.
The sunset review process prescribed in Title 41, Chapter 27, Arizona Revised Statutes, provides a system
for the Legislature to evaluate the need to continue the existence of state agencies. During the sunset review
process, an agency or program is reviewed by a legislative committee of reference. On coinpletion of the sunset
review, the committee of reference recommends to continue, revise, consolidate or terminate the agency or program.
The Joint Legislative Audit Committee has assigned the sunset review of the Western Interstate
Commission for Higher Education ( WICHE) to the committee of reference comprised of members of the Senate
I- ligher Education Committee and the House of Representatives Higher Education Committee.
Pursuant to A. R. S. 41- 2954, the committee of reference is required to consider certain sunset factors in
deciding whether to recoinmend continuance, modification or termination of an agency or program. Please provide
your agency's response to the factors listed below:
1. The objective and purpose in establishing the WICHE.
2. The effectiveness with which the WICHE has met its objective and purpose and the efficiency with which it has
operated.
3. The extent to which the WICHE has operated within the public interest.
4. The extent to which rules adopted by the WlCHE are consistent with the legislative mandate.
5. The extent to which the WlCHE has encouraged input from the public before adopting its rules and the extent to
which it has informed the public as to its actions and their expected impact on the public.
6. The extent to which the WICHE has been able to investigate and resolve complaints that are within its
jurisdiction.
7. The extent to which the Attorney General or any other applicable agency of state government has the authority
to prosecute actions under the enabling legislation.
Page 2
June 20, 2007
8. The extent to which the WlCHE has addressed deficiencies in its enabling statutes that prevent it from fulfilling
its statutory mandate.
9. The extent to which changes are necessary in the laws of the WICHE to adequately comply with these factors.
10. The extent to which the termination of the WlCHE would significantly harm the public health, safety or
welfare.
11. The extent to which the level of regulation exercised by the WICHE is appropriate and whether less or more
stringent levels of regulation would be appropriate.
12. The extent to which the WICHE has used private contractors in the performance of its duties and how effective
use of private contractors could be accomplished.
Additionally, please provide written responses to the following:
1. Identify the problem or the needs that the WICl- IE is intended to address.
2. State, to the extent practicable, in quantitative and qualitative terms, the objectives of the WICHE and its
anticipated accomplishments.
3. Identify any other agencies having similar, conflicting or duplicate objectives, and an explanation of the manner
in which the WICHE avoids duplication or conflict with other such agencies.
4. Assess the consequences of eliminating the WICME or of consolidating it with another agency.
In addition to responding to the factors listed above, please provide the committee of reference with copies
of minutes from your meetings during the past year and of your most recent annual report. Your response should be
received by September 1, 2007, so we may proceed with the sunset review and schedule the required public hearing.
Please submit the requested information to:
Dawn Nazary
Arizona State Senate
1700 West Washington
Phoenix, Arizona 85007
Thank you for your time and cooperation. If you have any questions, please feel free to contact me at 602-
926- 5584 or Dawn Nazary, the Senate Higher Education Committee Research Analyst, at 602- 926- 3171.
Sincerely,
State Senator
Chair, Senate Higher Education Committee of Reference
cc: Representative Nancy McLain
Mr. Joel Sideman, Executive Director, Arizona Board of Regents
Mr. Brian Lockery, House of Representat~ vesM ajority Research Analyst
Mr. Javan Mesnard, Senate Majority Policy Advisor
Ms. Barbara Guenther, Senate Minority Policy Advisor
Ms. Karla Phillips, House of liepresentatlves Majority Policy Advisor
Mr. Alan Eder, House of Representatives Minority Pohcy Advlsor
ARIZONA BOARD
OF REGENTS
RESPONSE
ARIZONA STATE SENATE
RESEARCH STAFF
TO: MEMBERS OF THE SENATE DAWN NAZARY
AND HOUSE HIGHER EDUCATION LEGISLATIVE RESEARCH ANALYST
HIGHER EDUCATION COMMITTEE
COMMITTEE OF REFERENCE Telephone ( 602) 926- 3 171
DATE: September 1 1, 2007
SUBJECT: Western Interstate Commission for Higher Education ( WICHE)
Sunset Review Questions
Attached is the Arizona Board of Regents response to the statutory questions required as part of
the Committee of Reference sunset review of the WICHE program.
Please feel free to contact me if you need any further assistance.
DNIj as
Attachment
cc: Javan Mesnard, Majority Policy Advisor, Senate
Barbara Guenther, Minority Policy Advisor, Senate
Brian Lockery, Majority Policy Research Staff, House of Representatives
Karla Phillips, Majority Policy Advisor, House of Representatives
Alan Eder, Minority Policy Advisor, House of Representatives
Arizona Board of Regents
2020 North Central Avenue, Suite 230
Phoenix, AZ 85004- 4593
602- 229- 2500
Fax 602- 229- 2555
www. azreqents. edu
Arizona State University Northern Arizona University University of Arizona
Ms. Dawn Nazary
Senate Research Analyst
Arizona State Senate
1700 W. Washington
Plioel~ ixA, Z 85007
Dear Ms. Nazary:
This is in response to Senator Ton1 O'Halleran's letter to Regent Robert Bulla regarding the sunset review of
Arizona's participation in the Western lnterstate Commission for Higher Education ( WICHE.) Enclosed please
find our responses to tlie sunset factors listed in Senator O'Halleran's letter.
Also enclosed 1s an excerpt fro111 the Board of Regents I'olicy Manual Number 2- 405 regard~ ngth e WICHE
PI ofess~ onal Student Exchange Program, and a copy of tlie Arizona Revised Stati~ es 15- 1 74 I through 15- 1746.
We are enclos~ nga copy of the A1. l~ o17Su lalc Nigl7l~ ghlsa nd tlie AI-~ ZOIZWLI ~ r k j o r cBer lej, publislied by the
WlCME Ma~ nO ffice in Bo~~ ldeCro, lorado. Also included is a copy of the Anzot~ clW ICHE Lcgrslullvc Upciulc,,
the Wc\/ el- 17 U11del. gl- uduuleE xckulrge brochure and the Ar~ rorluP rojesslo~ luSl 1~ 1dcrzEr , ucl7unge PI. OSI- UIII
blochure, wlilch outlines the fact that WICI3E reclp~ eiitsa re requ~ redt o practice In Arizona one- year for each yea1
of suppol- t or repay 50% of tlie funds expended on their behalf plus interest. Graduates who practice In the r~~ ral
or underserved areas of Arizona receive exceptional need credit and repay the~ rfo ur- year obligation in two years.
Plcasc do not hesitate to contact me at 602- 229- 2505 or the Arizona WlCI- IE Certifying Officer, Louise Lynch, at
602- 229- 2563, if we can provide additional information.
Sincerely,
Joel Sidel- nan
Executive Director
cc: Regent Fred Boicc
Regent Anne Mari~~ cci
Con~ rnissioiieJr ohn Elacger
Comm~ ssionerD avid Lorenz
Board Members: President Fred T. Boice, Tucson Robert B. Bulla, Scottsdale Ernest Calderon, Phoenix
Dennis DeConcini, Tucson Fred P. DuVal, Phoenix Anne L. Mariucci, Phoenix
Christina A. Palacios. Phoenix Garv L. Stuart, Phoenix
Governor Janet Napolitano Superintendent of Public Instruction Tom Horne
Student Regents: Mary Venezia, NAU David Martinez Ill. UA
Execut~ veD ~ rector: J oel Sideman
RESPONSES TO SUNSET FACTORS OF
' I'HI3 STATE OF ARIZONA'S MEMBEliSHlP AND PARTICIPATION IN THE
WESTERN lNTERSTATE COMMISSION FOR HIGHER EIIUCATION
( WICHE)
J . Tlze objective ~ lnpdu rpuse in establishing IVICHE.
In 1953, Arizona's Legislature authorized the Governor to enter into a
compact with the other western states to work together to provicle high-c-
li~ alityc, o st- effective education to the people of the participating states.
The legislative intent in establishing WICHE was:
To provide access to professional education in the West;
' I'o assist states to have the technically and professionally trainecl persons
they require;
To hcip states increase the effectiveness and efficiency of their higher
education programs.
Arizona's niembership in the Western Interstate Con~ mission for tlighcr
Etlucation ( WICHE) enables us to participate in the programs and scrvices
that the Con~ n~ issiopnro vides for its members\ states. Arizona participates
substantially in two WICHE programs - the Professional Student Exchange
Program and the Western Undergraduate Exchange.
For Arizona the most important of these is the Professional Student
Excliarlge Program ( PSEP). This program, sponsored by WICklE and
administered by the Arizona Board of Regents ( AROR), provides access Sor
Arizona students to a variety of professional education programs in the
Western States at instate tuition rates since these programs are not available
at Arizona's public universities. Six fields are currently available to Arizona
students: dentistry, occupational thcrapy, optometry, osteopathy, physician
assistant and veterinary medicine.
The students benefit by obtaining preferential admission consideration,
substantially reduced cost of attendance, and an educational opportunity not
available to them at Arizona's public institutions.
Responses to WJCHE Sunset Factors
Page 3
The agency has been effective in providing trained medical professional for
the State. On average, over the last five years, 79 percent of graduates have
returned to Arizona to practice their profession.
Educating students through the WICHE PSEP is more cost effective than
establishing and maintaining these programs at our public institutions.
WlCHE is administered by the ABOR central office in a cost- efficient
manner. The only annual costs to the State for administering the program
consist of the membership fee to the Commission and salary and employee
related expenses for 1.25 Board of Regents staff members.
3. Tlie extent to rvlzich IVICffE has oj~ eruted~ vithirzt l ~ pei lblic ir~ terest.
Students wishing to become trained medical professionals, and the citizens of
the State that they provide care to upon completion of their education are the
beneficiaries of Arizona's participation in thc W lCHE Professional Student
Exchange Program.
It is in the public interest for the State of Arizona to utilize the access
opportunities made available through participation in the WICHE
Professional Student Exchange Program to educate medical professionals
rather than building and maintaining these cxpcnsive professional programs
in- state.
It is important to note that many participating public schools will not acccpt
out- of- state students except through WICHE PSEP. Therefore, participation
in WICHE provides the only access available to some of these professional
programs.
The agency's rnajor accomplishments are enabling the State to meet its needs
for dentists, occupational therapists, optometrists, osteopaths, physician
assistants, and veterinarians rather than having to rely iotally on in- migration.
4. The ~,,\ rtentto , vhiclz rirles ~ doptetbl y WJCHE are consister~ tw ith the Iqi. slutive
rrt andrrte.
In its Policy Manual the Board of Iiegents has adopted a set of policies
( excerpts attached) which reflect the statutory mandates concerning the
WICIIE Program.
Responses to WICHE Sunset Factors
Page 5
9. Tlze extent to ~ vhichc hanges are rzecessary in tlze laws of WICHE to udequutely
conrply with tlzese factors.
Several of the Boards and Associations of the fields supported through
WICHE PSEP have indicated that there is a shortage of trained medical
professionals in these fields in Arizona. Also, they indicate that there is a
severe shortage in the rural and undcrserved areas of the State. Therefore, we
suggest that consideration be given to make the WICHE collection fund be
~ naden on reverting. Then, to assist with the shortage of trained medical
professionals in the riiral and underserved areas, those funds could be used to
providc stipends to graduates who choose to practice in underserved areas.
10. 7 ' 1 1 ~ ex tent to ~ vhiclzt he ternlirtution of' WICIIE w~ oulds ig~ z@ icrrntlhy arm thp
public Izealtl~, s rrfi. ty or welfure.
B If Arizona's participation in the WICI- IE Professional Shrdent Exchange
PI- ogram were terminated, Arizona would have to rely totally on those [ I- om
out- of- state to provide all of the health professionals needed in the fields of
dentistry, occupational therapy, optometry, osteopathy, pliysicial~ assistant,
ancl veterinary medicine.
Arizonans wishing to prepare for these professional fields would not have
access to the necessary professional education at those sc1ioo1s that limit
admission to students from WICHE states, and would not have the benefit 01
state support to pursue these professional degrees and then return to practice
these needed professions in Arizona.
Where access might be available, the applicant woi~ ldn eed significantly
greater financial resources to cover out- of- state tuition at a public instih~ tion
and full tilition at a private school along with all other expenses.
Furthermore, the unmet needs would undoubtedly lead to requests to the
Legislature for funding at our public universities for thesc professional
programs. To build adequate facilities for these six professional fields, and
providc operating expenditures, clearly would be extremely costly to the
State.
1 I . Tlze eC'\+ tentto ~ vlziclzt he level of regulutioiz exerciser1 by WICHE is ~~ ppropriute
rr lld ~ vlzether1 e. s. s or m? ore sdriltgelzt I~? vL.~. Y0 f regulrltion ? voulrl be
c~~~~~ ropriczte.
The current level of regillation is appropriate.
Responses to WICHE Sunset Factors
Page 7
More applicants seek support than we are able to fund as evidenced by the following
numbers certified as eligible to participate compared to the number of first year students
we are able to support.
Year
2003- 04
2004- 05
2005- 06
2006- 07
2007- 08
# Certified
226
Freshman Supported
47
43
45
67
6 8
3. Itlentqy uny other ugerzcies hrtving siririlur, conjlictirzg or duplicate objectives,
crnrl N I I ex~~ lu~~ utoifo trhze nzunner in ~ vhichW ICHE uvoids di~ plicatiorzo r
cor? flict with other such ugencies.
There are no other state agencies that are providing educational access
opportunities for Arizona residents to study in fields not available at Arizona's
public universities.
4. Assess the corlseqrterzces of elir~ tir~ atiizWg ICl3E or curj. solitlt~ tingit ~ vitlzc tnotlzer
tJgell C) J.
Arizona joined the WTCHE compact in 1953 and has been educating students
through this mechanism for 54 years. After 54 years, Arizona residents expect
some lnechanism for obtai~ linga n education in the fields supported. If Arizona's
participation in WICHE PSEP were eliminated, Arizona residents would expect
their Lcgislators to build public schools of dentistry, occupational therapy,
optometry, osteopathy, physician assistant and veterinary medicine in Arizona.
1, Iecr. se l~ rovideti re Committee of Hefercnce with copies of minutes ji- urn y o ~ nrt eetilzgs
tlrrrir~ gt he past yeur un~ olf j~ o~ rntr o st recent arznual report.
The 2006- 07 WICHE Legislative Update is attached.
[ C. nILES\ WP\ FORMSlC; UNST- D]
LL: 08/ 27/ 2007
2- 405 WICHE Professional Student Exchange Program
Policy Number: 2- 405
A. Authorization
Policy Name: WICHE Professional Student Exchange
Program
The Arizona Board of Regents is the designated agency of the State of
Arizona charged with the duty of selecting and contracting with Arizona
students who participate in the Professional Student Exchange Program of
the Western Interstate Commission for Higher Education. The Executive
Director of the Board shall be responsible for administration of the
program and the execution of policies the Board adopts for this program.
( A. R. S. 515- 1743, 1744, 1745, 1746)
B. Funding
Policy Revision Dates: 12/ 92, 1/ 92, 12/ 87, 3/ 85
1. The Board will include in its annual legislative request budget funds
necessary to pay the WICHE membership fee, the support fees for
students continuing in the program, and the support fees for any
new positions.
Page 1
2. Funds requested from the Legislature to support continuing
students will not be used to support new students and funds
requested to support new students will not be used to support
continuing students except in extraordinary circumstances.
3. The priorities for funding students who have been certified are the
following: All students eligible for funding in each category shall be
funded before any student in the next lower category is funded.
a. Continuing students who were supported during the
preceding year and who are making satisfactory progress in
their academic programs.
b. New students who applied for certification prior to October
15 who have been admitted to a participating institution.
c. New students who applied for certification after October 15,
who have been certified, and who have been admitted to a
participating institution.
forth the method and terms of repayment by the student to the state
and shall be on terms and conditions and in a form provided by the
Board. ( A. R. S. 515- 1745)
Policy Number: 2- 405
4. The Executive Director of the Board shall approve all new and
continuing students to be supported each year in accordance with
the funding priorities set forth in section B( 3) of this Policy. No
funds shall be committed in excess of those appropriated by the
Legislature for student subsidies.
Policy Name: WICHE Professional Student Exchange
Program
5. Students supported by this program may not receive any other
scholarships that pay the students' full tuition and fees, such as
those available from the military or Public Health Service,
concurrently with WICHE support.
D. Rate of Interest
Policy Revision Dates: 12/ 92, 1/ 92, 12187, 3/ 85
1. The interest rate for a certified student's contract with the Board
shall be the rate in effect for the fiscal year during which the student
begins the approved course of professional study as a certified and
funded student under the Professional Student Exchange Program.
The rate shall remain unchanged during the student's participation
in the Student Exchange Program.
Page 3
2. By November 1 of each current fiscal year, the Executive Director
of the Board shall set the interest rate in effect for the following
fiscal year, which shall be the rate which is equal to the average
interest rate, rounded to the nearest one- half percent, of auctioned
ninety- one day United States Treasury Bills over the twenty- four
month period ending September 30 of the current fiscal year.
( A. R. S. § 15- 1745B).
E. Obligated Service
I. Within one year after completing the professional education and
internshiplresidency, the student must begin the practice of this
profession within Arizona. Students may fulfill their obligation to
Arizona by practicing their profession one calendar year for each
academic year they receive WICHE support.
b. Students who begin formal postgraduate studies within one
year following completion of their professional degree
program must establish practice in Arizona or begin
repayment within one year following completion of their
postgraduate studies.
Policy Number: 2- 405
c. A student who is unable to initiate professional practice in
Arizona within one year after graduation due to a severe
medical or other unavoidable problem beyond the student's
control may petition the Executive Director for an extension
of the one- year grace period. The student's failure to find
satisfactory employment in Arizona will not be considered
sufficient cause for an extension of the grace period. ( A. R. S.
51 5- 1 745A. 1 .)
Policy Name: WICHE Professional Student Exchange
Program
F. Repayment
1. Students who do not practice the profession for which they were
trained under the sponsorship of the WICHE Professional Student
Exchange Program and students who fail to complete their training
shall repay to the state one- half of all sums expended by the state
for and in behalf of the student under the provisions of the student's
contract and Arizona statutes. ( A. R. S. § 15- 1745A. 3.)
Policy Revision Dates: 12/ 92, 1/ 92, 12187, 3/ 85
2. For each student who is obligated to repay, a schedule of payments
will be prepared according to the requirements of A. R. S. §
15- 1745A. 2. and A. 3. The schedule will be based on the total
principal and the accumulated interest which is due on the date the
student is obligated to begin repayment. The amount of interest
collected in each payment will be determined by the rate of interest
required by Arizona statute, the declining balance of the
outstanding obligation, and the length of time between payment
due dates.
Page 5
3. Individuals who fail to make payments according to their repayment
schedule will be referred to Legal Counsel for the Board for
appropriate action.
4. Except as specified in E. 5. below, a student who fails to complete
the course of study for which WICHE support was received must
; ormat Document
15- 1741. Definit~ ons
I n this article, unless the context otherwise requires:
1. " Board" means the Arizona board of regents or its successor.
2. " Commission" means the western interstate commission for higher education.
3. " Compact" means the compact for western regional cooperation in higher education.
Each compacting state and territory represented at any meeting of the commission is entitled to one vote.
ARTICLE V1
The commission shall elect from its number a chairman and a vice- chairman, and may appoint, and at its
pleasure dismiss or remove, such officers, agents and employees as may be required to carry out the
purpose of this compact; and shall fix and determine their duties, qualifications and compensation, having
due regard for the importance of the responsibilities involved.
The commissioners shall serve without compensation but shall be reimbursed for their actual and necessary
expenses from the funds of the commission.
ARTICLE VII
The commission shall adopt a seal and bylaws and shall adopt and promulgate rules and regulations for its
management and control.
The commission may elect such committees as it deems necessary for the carrying out of its functions.
The commlsslon shall establish and maintain an offlce within one of the compacting states for the
transaction of its business and may meet at any time, but in any event must meet at least once a year. The
chairman may call such additional meetings and upon the request of a majority of the commissioners of
three or more compacting states or territories shall call additional meetings.
The commission shall submit a budget to the governor of each compacting state and territory at such time
and for such period as may be required.
The commission shall, after negotiations with interested institutions, determine the cost of providing the
facilities for graduate and professional education for use in its contractual agreements throughout the
region.
On or before the fifteenth day of January of each year, the commission shall submit to the governors and
legislatures of the compacting states and territories a report of its activities for the preceding calendar year.
The commission shall keep accurate books of account, showing in full its receipts and disbursements, and
said books of account shall be open at any reasonable time for inspection by the governor of any compacting
state or territory or his designated representatwe. The commission shall not be subject to the audit and
account~ ngp rocedure of any of the compact~ ngs tates or territories. The commission shall provide for an
independent annual audit.
ARTICLE VIII
I t shall be the duty of the commission to enter into such contractual agreements with any institutions in the
region offering graduate or professional education and with any of the compacting states or territories as
may be required in the judgment of the commission to provide adequate services and facilities of graduate
and professional education for the citizens of the respective compacting states or territories. The
commission shall first endeavor to provide adequate services and facilities in the fields of dentistry,
medicine, public health and veterinary medicine and may undertake similar activities in other professional
and graduate fields.
For this purpose the commission may enter into contractual agreements:
( a) With the governing authority of any educational institution in the region or with any compacting state or
territory to provide such graduate or professional educational services upon terms and conditions to be
agreed upon between contracting parties, and
( b) With the governing authority of any educational institution in the region or with any compacting state or
territory to assist in the placement of graduate or professional students in educational institutions in the
region providing the desired services and facilities, upon such terms and conditions as the commission may
prescribe.
I t shall be the duty of the commission to undertake studies of needs for professional and graduate
811 412007 2: 5 1 I'M
; crmat Document
15- 1743. hqthorizinq aqreements for education of Arizona students outside compact area; LmjtaL~~ n_ s
A. The western interstate commission for higher education is authorized to act on behalf of this state in
making arrangements for the placement of students in institutions and programs of higher learning outside
the states which are parties to the compact for establishing the commission. For that purpose, the
commission may negotiate and enter into arrangements and contracts with the Arizona board of regents,
with public and private educational institutions and agencies and with other states. These arrangements and
contracts may provide for the obtaining of one or more places for students on either a special or cont~ nuing
basis; the payment of partial or full tuition and other charges not to exceed the cost of agreements within
the compact area; and the furnishing of reciprocal, compensating or other advantages and benef~ tsin
support of the educational program involved.
8. The authority conferred by subsection A shall be exercised only pursuant to written agreement between
the commission and the Arizona board of regents. Any such agreements shall include provisions for the
payment of tuition and any other costs, and no such agreement shall be made which commits this state or
any agency or officer of it to any obligation for which funds have not been appropriated or otherwise made
available in accordance with law.
C. Nothing In this section alters any of the obligations or restricts or impairs any rights which this state may
have under the compact establishing the commission.
Format ~ ) 0 ~ l l n l C l l ~ 11IL11.11 w w W . L I L . L L , ~ . ~ V I , VI . f i . s u r u v r u ~ . . u ~ . . . I~, ~. uu-- ,-.-. .-.- a , .-....
15- 1745. Contract w ~ t hst udent certified by board
A. Before certify~ nga student to the commission the board shall, on behalf of this state, enter into a written
contract with the student. The contract shall set forth the methods and terms of repayment by the student
to this state and shall be on terms and conditions and in a form provided by the board. The contract shall
provide:
1. That the student shall within one year after completing his professional education and internship begin
the practice of his profession within Arizona. I f the student engages in postgraduate studies and does so
without a lapse of more than one year following the completion of his professional course, then he shall
begin practice within this state within one year after completing the graduate studies. I f the student is
involuntarily inducted into military service, or for other cause beyond his control deemed sufficient by the
board is unable to begin the practice of his profession within one year after completing his professional
education, internship and any graduate studies, then he shall begin practice within this state within one year
after completing his required military service or the termination of such other cause.
2. That if the student engages in the practice of his profession within this state or while completing military
service resulting from involuntary induction, his indebtedness to this state may be discharged in one of the
following ways:
( a) By payment to this state of one- half of all sums expended by this state for and in behalf of the student
with interest at the rate prescribed in subsection B.
( b) For each year of practice or internship within this state or in military service there shall be discharged
his obligation for one academic year of study for which a portion of the cost was paid by this state, except
that each six months of practice shall discharge his obligation for one academic year of study if such practice
is confined to a locality within the state where there is an exceptional need for his professional services as
determined and certified by the medical board of examiners or licensing board of his profession.
3. That if the student fails to complete the required course of professional study, or if the course of study is
interrupted by one school year or more for a cause or causes not resulting from involuntary induction into
military service or other cause beyond his control deemed sufficient by the board, or if the student fails to
practice his profession within the state for such continuous time as completely discharges his obl~ gation,
except for delays resulting from an excusable cause as prescribed in this section, one- half of the entire sum
paid for or on behalf of the student by this state and not repaid or discharged as herein provided shall be
due and payable forthwith with interest at the rate prescribed in subsection B. The board may extend the
time of payment over a period not exceeding fifteen years and shall not require payment of interest during
the existence of any excusable cause as prescribed in this section.
4. That if the student does not begin practice in this state within the time prescribed in this section but shall
have repaid an agreed part of the sum expended by this state in his behalf, the board may permit him to
discharge the balance of his obligation by subsequent practice within this state.
5. That in the event of the death of the student during the per~ odo f his education, internship or pract~ ce, h is
obligation to this state under this article shall cease except as to any portion which is then due.
B. The interest rate for a student's contract is the rate in effect for the fiscal year during which the student
begins the approved course of professional study. The board shall establish the interest rate by November 1
of the current year for the following fiscal year. The board shall establish a rate equal to the average interest
rate of auctioned ninety- one day United States treasury bills over the twenty- four month period ending
September 30 of the current year, except that the board may round the rate to the nearest one- half per
cent. Accrual of interest charges provided by the contract begins on the first day of the first complete month
following graduation of the student or, for students who fail to complete their required course of study, the
8/ 14/ 2007 2: 52 I'M
15- 17/ 16. Collecttons revslv~ nqfu nd; expend~ tures;_ empIoymenot f leqal counsel; exernptio~ f? r om lapslnq
A. A collections revolving fund is established which consists of:
1. Monies repaid t o the board as provided in section 15- 1745.
2. Monies which the legislature appropriates.
6. The board shall use monies in the collections revolving fund for payment of expenses incurred in
enforcing contracts entered into with students as provided in section 15- 1745, including expenditures for
filing fees, court costs, travel, depositions, transcripts, reproduction costs, expert witness fees,
investigations and similar costs and expenses. Except for payment of attorney fees due on the initial
recovery of monies as provided in subsection C of this section, the board may not use monies in the fund to
compensate or employ attorneys.
C. The board may, in legal actions taken outside of this state to enforce the contracts entered into with
students as provided in section 15- 1745, employ legal counsel on a contingent fee basis plus court costs.
The employment and payment of legal counsel under this subsection is not subject to the bidding and
contracting requirements under title 41, chapter 23.
0. At no time shall the amount of monies in the collections revolving fund retained to pay expenses incurred
in enforcing contracts entered into with students exceed ten thousand dollars.
E. The board shall not retain more than ten thousand dollars in the collections revolving fund. Monies
collected in excess of ten thousand dollars shall be deposited in the state general fund.
F. Monies in the collections revolving fund, up to an amount of ten thousand dollars, are exempt from
section 35- 190, relating to lapsing of appropriations.
8/ 14/ 2007 252 Phl
BRIEF
Higher Education & the Workforce
In 2006 a good education is no longer just a way for an individual to get ahead. It is also, and increasingly, the best way a state can get ahead
- and therefore a real economic priority. A college degree confers specific, calculable benefits on a state's citizens: the average lifetime income of
an individual with a bachelor's degree is $ 2.1 million, compared to $ 1.2 million for those with just a high school diploma. But the benefits realized
by the state are just as impressive as those that an individual sees. Not only does a state with a well- educated populace see increased tax revenues
from its ( better- paid) citizens, it is also able to use the education level of its citizens as a powerful lure far business and industry - a way to build its
economy overall.
For that to happen, however, a state must make sure that all of its citizens have access to a college education. Businesses are no longer simply
looking for a small, well- educated elite but instead need to be able to draw upon a labor pool that's both broadly educated and diverse. In fact, a
report from the Business- Higher Education Forum, a coalition that includes some of the country's top corporate CEOs, stotes that an educated and
diverse population is an essential competitive asset in today's global economy.
In Arizona, one of the country's fastest growing states, the demand for well- educated employees will only increase over the next several years. In
the decade leading up to 2013, healthcare occupations will see growth of 50 percent. Almost 1,800 dentists will need to be hired to fill new posts and
to cover retirement, for example. Teachers will be in high demand: nearly 70,000 educators ( including librarians) will need to be hired. Managers
will see their ranks swell by 21 percent. The growth of these sectors is good news for Arizona's citizens, since wages for iobs in these areas are
significantly higher than the average for Arizona in general. But entry into these jobs comes with a price tag: most positions in these fields will
require a bachelor's degree or higher. The question for Arizona and other states is how, in a time of tight budgets, to meet the increasing demands
on higher education and thereby meet the needs of an increasingly sophisticated economy.
The Western Interstate Commission for Higher Education ( WICHE) has had workforce issues at the top of its agenda since its creation in the 1950s.
In fact, WICHE was launched specifically to address the shortage of workforce- training opportunities in medicine, dentistry, and other professional
fields. Today, WICHE offers a slew of undergraduate, graduate, and professional options that help the West's states educate and train their citizens,
building their economies in the process.
Employment in Arizona ( including hourly and salaried jobs and
self- employment) is projected to grow by 24 percent from 2003
to 2013, adding over 600,000 new jobs to the state's economy
and growing the workforce from 2,511,762 to 3,112,481. The
rate of growth for the nation as a whole will be 13 percent
( 2004- 1 4).
Growth will occur in virtually all sectors of Arizona's economy,
with the largest number of new iobs being generated in lower-paying
fields such as sales, office support, food preparation,
and construction. However, many of Arizona's " top jobs"
- those with the fastest growth rate and highest earnings - are
professional positions ( see Table 1).
T; r Zbi - + * =
U d * ' 8 * **$ Jet23
Physician Assistants Occ. Therapists
Dental Hygienists Physical Therapists
Radiation Therapists Nut. Med. Techs.
Medical Scientists Diag. Med. Sonogs.
Registered Nurses Pharmacists
* Jobs with the strongest employment outlook ( 2003-
13) and with earnings in the top quartile.
Source: Arizono Deportment of Economic Security.
May 2006
All of the top jobs listed on Table 1 require considerable education and
training. Half of them ( physician assistant, occupational therapist,
physical therapist, medical scientist, and pharmacist) demand a B. A.
or higher; the other half ( dental hygienist, radiation therapist, nuclear
medicine technologist, diagnostic medical sonographer, and registered
nurse) require an associate's degree.
Strikingly, every one of Arizona's top jobs is in a field related to
health. In the decade leading up to 2013, the need for health care
professionals will rise steeply in the state. More than 2,000 M. D. s,
dentists, veterinarians, and other health professionals will need to be
hired iust to fill new iobs. The demand for registered nurses will see a
58 percent increase - nearly 20,000 new R. N. s will be needed in the
state; when retirements and other separations are factored in, that
number grows to a whopping 26,000- plus. Physician assistants will see
a 78 percent increase in their ranks, with some 220 being hired each
year for new positions and to replace those who leave the field. Physical
therapists will experience a 55 percent increase, while pharmacists will
log growth of 52 percent. And about 450 veterinarians will need to be
hired, as well. Arizona will also experience a strong demand for new
occupationol therapists, diagnostic sonographers and nuclear medicine
techs. One reason for the increase: the aging of the state's population.
Arizona is seeing rapid growth in its older population: in 2005,17
percent, or more than 978,000, of its citizens were 60 or older.
Two other essential professionals, managers and teachers, will
also see a large number of hires in the decade leading up to 2013,
due to new job creation and the need for replacement workers.
Over 3,200 new managers of all types - from CEOs and operations
managers to supervisors - will be required to help run the state's
various enterprises. Large numbers of teachers at every level from
kindergarten through college will be needed. At the primary and
secondary levels, close to 17,000 new jobs will be created, with the
biggest chunk ( over 6,300) slated for elementary school teachers. Over
10,000 new slots in postsecondary education are proiected to open up
during the decade. In all, some 5,000 hires will have to be made each
year to cover all of education's new job openings and retirements.
As Arizona's economy changes, so do the kinds of jobs available to
Arizonans. The projections indicate that plenty of jobs will be available
for those without formal training beyond high school. However,
wages in the sectors hiring those workers - sales, office support, food
preparation, and construction/ extraction will be their top employers
- fall significantly below the statewide mean ($ 16.56, or $ 34,445 a
year); ranging from an average of $ 8.04 for food prep to $ 15.1 4 for
construction, they simply don't provide a living wage. Over the next
several years, workers who hove the most education and training will
have the best opportunity for high- paying jobs in growing sectors. In
addition, a number of professions requiring education beyond the
bachelor's degree are expected to see moderate to strong growth ( see
Table 2).
Tabie 2
Ariz2na Proiessional Ers. ipioyzaia~ Pt rajeetions, 4003- 201 3
All professions 2,511,762 3,112,481 24% 1,200,050
Architects 5,063 6,557 30% 2,480
Dentists 4,502 5,527 23% 1,780
Librarians 2,722 3,109 14% 1,040
Occupational Therapists 1,003 1,550 55% 680
Optometrists 479 577 20% 230
Pharmacists 3,210 4,882 52% 2,290
Physical Therapists 2,341 3,636 55% 1,530
Physician Assistants 2,341 4,178 78% 2,200
Physicians and Surgeons 7,898 10,686 38% 3,860
Podiatrists 31 1 396 27% 160
Registered Nurses 34,123 53,901 58% 26,920
Veterinarians 1,223 1,382 13% 450
* Includes new iobs and replacements, rounded.
Source: Arizona Department of Economic Security.
ARIZONA
&
\ J'IICHE's Studeni Exchange
In 2002, over 40 percent of Arizona's new high school
grads enrolled in college - and 11 percent of them went to
school out of state, according to WICHE's Policy Indicators
for Higher Education ( www. wiche. edu/ Policy/ FactBook).
One of the most economical ways for them to do thot: our
Western Undergraduate Exchange ( WUE), which allows
students to enroll in out- of- state institutions at a reduced
tuition level ( 150 percent of resident tuition). Over 700
Arizona students enrolled in WUE in 2005, saving almost
$ 4 million and working toward degrees in fields that are
essential to Arizona's economy. Some of the most popular
fields of study for Arizona students: hospital management,
construction management, business administration,
biology, and communications.
WICHE's Professional Student Exchange Program ( PSEP)
offers students opportunities to train outside of their home
state in 14 highly competitive fields: architecture, dentistry,
graduate library studies, medicine, nursing, occupational
therapy, optometry, osteopathic medicine, pharmacy,
physical therapy, physician assistant, podiatry, public
health, and veterinary medicine. In Arizona, employment
projections in all these fields are on the rise ( see Table 2).
Through PSEP, Arizona students are studying to be dentists,
veterinarians, occupational therapists, optometrists,
osteopathic physicians, and physician assistants. In general,
at least 60 percent of PSEP students return to their home
state to practice.
Arizona students also participate in the Western Regional
Graduate Program ( WRGP), which offers them the chance
to engage in graduate studies and includes 175 distinctive
programs in 14 states, such as education, construction
monagement, nursing, and business. On the horizon is a
distance learning option, NEON ( the Northwest Educational
Outreach Network), which will provide electronically
delivered degree programs in high- demand disciplines,
such as a Ph. D. in nursing and a graduate certificate in
supply chain monagement.
Six Fast- Track Fields
The Outlook f o r Arizona & the Nation
The economy in Arizona and the nation will continue generating jobs
for workers at all levels of education and training for the foreseeable
future. But there will be an increasing demand for employees with at
least some postsecondory education, preferably a bachelor's degree.
Nationwide, during a decade ( 2004- 14) that will witness large numbers
of baby boomers moving into retirement, 18.9 million new jobs will
be created, an increase of 13 percent. However, in some fields, the
increase will be far more than that. Across the country, competition
will be especially stiff for physician assistonts, who will see their ranks
grow by 50 percent, as well as for physical and occupational therapists
( whose fields will experience growth of 37 and 34 percent, respectively)
and pharmacists ( 25 percent). More than 703,000 new nurses will be
needed ( an increase of 29 percent) and some 11,000 new veterinarians.
Below is o debriefing that focuses on trends in some of Arizona's - and
the nation's - fast growing professions.
Registered Nurses. Nursing is the ninth fastest growing field in
Arizona among occupations requiring some postsecondary educotion,
but it will require more new hires in the decade leading up to 2013
than any other job in that category. Working in the largest healthcare
profession, registered nurses held about 34,123 jobs in 2003 in
Arizona; that number will grow to 53,901 by 2013, a 58 percent
increase. Demand for RNs is expected to be high for a number of
reasons, including the need to replace experienced nurses who leave
the field, especially as the median age of the RN population continues
to rise; a growing elderly population; and an imbalance between
the supply of and demand for qualified RNs. Nationally, employment
of registered nurses is expected to grow by 29 percent in the decade
leading up to 2014. Median annual earnings of registered nurses
were $ 55,250 in 2004; the top 10 percent earned $ 72,240 and up
( nationally, thot number was $ 77,170).
Physician Assistants. This is the fastest growing profession in
Arizona among all occupations requiring a bachelor's degree or higher.
Physician assistants held 2,341 jobs in 2003; that number is projected
to grow to 4,178 in 2013, a 78 percent increase. Demand will be strong
for FIA. s, particularly in places that have difficulty attracting physicians,
such as rural areas and inner city clinics. In addition, physicians and
institutions ore expected to employ more F! A. s to provide primary care
and assist with medical and surgical procedures. Nationally, the number
of physician assistants is expected to grow by 50 percent ( 2004- 14):
over 3,000 new physician assistants will be needed each year. Median
annual earnings of physician assistonts in Arizona were $ 65,770 in
2004; the top 10 percent earned $ 92,810 and up ( nationally, that
figure was $ 94,840).
Physical Therapists. This is the third fastest growing profession will vary, ranging from 38 percent for postsecondary teachers down
among all occupations requiring a bachelor's degree or higher in ta 9 percent for middle school teachers. Median annual earnings
Arizona. Physical therapists held 2,341 jobs in 2003, a number that ranged from $ 35,230 for Arizona's primary teachers to $ 37,110 for
will climb 55 percent to 3,636 in 2013. Thanks to a rapidly growing secondary in 2004; the top 10 percent earned $ 54,060 and $ 57,200
elderly population that's particularly vulnerable to chronic conditions and up, respectively ( nationally, those figures were $ 68,930 and
requiring therapeutic services - as well as to the use of physical $ 72,110).
therapists at the workplace, to evaluate worksites, develop exercise
programs, and teach safe work habits to employees - the demand
for PT. s will be strong throughout the 2003- 13 decade. Nationally,
the number of physical therapists is expected to grow by 37 percent
( 2004- 14). In Arizona, median annual earnings of physical
therapists were $ 61,730 in 2004; the top 10 percent earned $ 92,140
and up ( nationally, that number was $ 89,830).
The Regional Outlook
Seven of the top 10 states in terms of proiected job growth are in
the West: Nevada, Utah, Idaho, Arizona, Colorado, New Mexico, and
California. In the 15 WlCHE states, an additional 5.9 million iobs will
be added in the decade leading up to 2013. While California has the
greatest numerical growth in the region, with some 270,000 new
jobs being created each year, the states seeing the fastest job growth
Dentists. To keep up with its growing population, Arizona will need are Nevada ( 41 percent), Utah ( 31 percent), Idaho ( 24 percent),
to hire almost 180 dentists each year between now and 2013 to fill and Arizona and Colorado ( 23 percent). Most of the region's fastest
new iobs as well as the posts of those who've left the profession. growing professions are in the health and computer sectors.
Dentists held 4,502 jobs in 2003 in Arizona; that number is projected
to grow to 5,527 by 2013, a 23 percent increase. Nationally, the
number of dentists expected to grow by 4 percent. Median annual
earnings of dentists in Arizona were $ 138,500 in 2004.
Pharmacists. In Arizona, this is the eighth fastest growing
profession among all occupations requiring a bachelor's degree
or higher. Pharmacists held 3,210 jobs in 2003, a number slated
to jump to 4,882 in 2013, a 52 percent increase. Competition
for pharmacists is expected to be steep over the 2003- 13 period
due to the increased pharmaceutical needs of a larger and older
population. In addition, the number of degrees granted in pharmacy
is expected to be lower than the number of job openings created by
employment growth and replacement needs. Nationally, the number
of pharmacists is expected to graw by 25 percent ( 2004- 14). Median
annual earnings of Arizona's pharmacists in 2004 were $ 85,160; the
top 10 percent earned $ 106,480 and up ( nationally, that figure was
$ 1 12,530).
Teachers. When it comes to the number of new hires, teaching is
one of the top professions among occupations requiring a bachelor's.
Primary, secondary, and special ed teachers held 68,381 jobs in
2003 in Arizona; that number will graw to 85,161 by 2013, a 25
percent increase. In the decade leading up to 2013, Arizona will
also have to find 10,068 new postsecondary teachers for its colleges
and universities. In addition, it will have to hire almost 23,000
educators at all levels to cover retirements and separations. Every
year, in other words, about 5,000 new and replacement teachers will
need to be hired in Arizona. Nationally, the demand for teachers
Sources: Workforce Report Data
All information used in the text and tables of this report is available
from the Arizona Department of Labor and Workforce Development
( www. workforce. az. gov) and the U. S. Department of Labor's Bureau
of Labor Statistics ( www. bls. govlemp).
WlCHE
WlCHE and its 15 member states - Alaska, Arizona, California,
Colorado, Hawaii, Idaho, Montana, Nevada, New Mexico, North
Dakota, Oregon, South Dakota, Utah, Washington, and Wyoming
- work collaboratively to expand educational access and excellence
for all citizens of the West. By promoting innovation, cooperation,
resource sharing, and sound public policy among states and
institutions, WlCHE strengthens higher education's contributions to
the region's social, economic, and civic life.
For more information on WICHEts Student Exchange Programs,
contact Margo Schultz at 303- 541- 0214 or mschultz@ wiche. edu
or write to:
WICHEIStudent Exchange
PO Box 9752
Boulder, CO 80301 - 9752
Visit our website at www. wiche. edu.
WlCH€ Access Innovation Collaboration
Western Interstate Commission for Higher Education
Aiizona State Highlights
1
WlCHE // L\- Western l nterstate Commission for Higher Education
ARIZONA STATE HIGHLIGHTS
COMMISSIONERS
David Lorenz
retired vice president of administration and finance, Northern Arizona University Flagstaff
Former commissioners include Linda Blessing, former executive director of the Board of Regents; Lawrence Gudis, senior
vice- president of the Apollo Group, Inc.; Frank Besnette, 1999 WICHE chair and former executive director of the Arizona Board of
Regents; former Rep. Daniel Schottel as well as Jaime Gutierrez, assistant vice president of community relations at the University
of Arizona; Molly Broad, president of the University of North Carolina; and former Sen. Jones Osborn.
LEGISLATIVE ADVISORY COMMllTEE members work to strengthen state policymaking in higher education, engaging
legislators in the discussion of higher ed issues and seeking their input on strategies for interstate collaboration.
Representing Arizona on WICHE's Legislative Advisory Committee:
Sen. Bob Burns- Phoenix
Rep. Phil Lopes- Tucson
How does Arizona benefit?
Arizona receives a number of direct benefits from its membership. In 2006- 07, Arizona students and their families saved over $ 4.6
million in tuition by participating in the Western Undergraduate Exchange, just one of WICHE's three Student Exchange Programs.
These programs help outbound students and their families save money through reduced tuition arrangements. In addition, Arizona
institutions are able to increase enrollment in programs with extra capacity by enrolling students from other WICHE states.
What student programs does WICHE offer?
Through WICHE's Professional Student Exchange, Arizona supported 183 residents in 2006- 07 in six professional fields
Crizona State Highlights http:// www. wiche. edu/ States/ states. asp? stateID=~
- -
( dentistry, veterinary medicine, occupational therapy, optometry, osteopathic medicine, and physician assistant) in other WICHE
states. It received 96 students from other WICHE states as well as some $ 1.3 million in support fees, not to mention tuition, room
and board, and incidental student expenses. Historically, close to 80 percent of outbound PSEP students have returned to Arizona
to pursue their professional careers. In 2006- 07, Arizona sent 36 students to out- of- state institutions via the Western Regional
Graduate Program, while receiving 35. Nearly 800 Arizona students participated in the Western Undergraduate Exchange,
attending schools in 14 other states, while approximately 2,350 students from other participating states enrolled in Arizona.
What policy & information resources are available?
Arizona has been an active participant in projects to support better- informed decision making at the state level, including the
Changing Direction project, which is funded by Lumina Foundation for Education and is examining ways Arizona can respond to
the collision between constrained fiscal resources and increasing demand. Other initiatives have been sponsored by the Ford
Foundation, the U. S. Dept. of Education, the multiple funders for the Pathways to College Network, and others. In addition, teams
of policymakers and educational leaders from Arizona participate each year in regional policy forums and meetings hosted by
WICHE. Our goal with both forums and projects is to assist educational leaders and policymakers by advocating for good public
policy in the West. A third way we accomplish this is via our publication series, including Policy Insights and the Western Policy
Exchange reports, which explore a wide range of significant policy issues. We also publish in- depth works such as Knocking at the
College Door: Projections of High School Graduates by State, Income, and Race/ Ethnicity and the Regional Fact Book for Higher
Education in the West, which includes data and analyses on fiscal, demographic, economic, and social indicators as well as a
state report providing Arizona data on access, affordability, finance, faculty, technology, and workforce issues.
Which other programs does Arizona use?
Arizona participates in other WICHE programs as well. Twelve Arizona organizations and institutions are members of WCET ( the
Western Cooperative for Educational Telecommunications), an international leader in helping states and institutions use new
technologies to improve education.
Links
Arizona's Home Paqe
Arizona Board of Reqents
Proarams States Aboutus News Resources Search
@ Copyright 2000- 2007, WICHE
Arizona WICHE Legislative Update
Thanks for help-ing
turn dreams
into reality!
Brian Buc~ nas, tudent
Arizona College of
Osteopathic Medicme
Without support
from the WlCHE
program, attending
a professional
school of Optometry
would have been
very difficult to
impossible
Jesse V Dorninguez. 0 D
Un~ versltyo f Southern
Cal~ forn~ Cao llege of
Optometry
WlCHE
Professional Student
Exchange Program
WHAT IS WICHE?
WlCHE stands for the Western
Interstate Commission for Higher
Education. Arizona joined the
WlCHE compact in 1953 and has
successfully trained medical
professions through this mechanism
for more than 50 years. The WlCHE
Professional Student Exchange
Program ( PSEP) enables Arizona
students to enroll in one of six
professional programs in other
states, or at instate private
institutions, since these programs
WHY WlCHE PSEP?
are not available at Arizona's public
universities. The six programs
Arizona supports are: Dentistry,
Occupational Therapy, Optometry,
Osteopathy, Physician Assistant
and Veterinary Medicine. Through
this exchange, the student receives
preference in admission and pays
only the resident tuition fee at a
public institution, or the difference
between the WlCHE support fee
and standard tuition at a private
school.
Arizona does not have public in the WlCHE PSEP is the
colleges of dentistry, occupational mechanism Arizona uses to
therapy, optometry, osteopathy, educate trained professionals in
physician assistant or veterinary these highly- specialized medical
medicine. Therefore, participation fields.
WHAT ARE THE BENEFITS OF WlCHE PSEP
TO THE STATE OF ARIZONA?
Arizona fulfills its obligation to meet Arizona. Arizona's medical
the education needs of its citizens workforce is significantly enhanced
by providing opportunities without by the presence of professionals
having to build and maintain trained in numerous established
expensive professional programs in Western universities.
WHAT ARE THE BENEFITS OF WlCHE PSEP
TO ARIZONA STUDENTS?
The WICHE- Professional Student Also, their obligation for tuition
Exchange Program provides payments are substantially reduced.
Arizona residents with educational Students' pay instate tuition, and
opportunities not available at room, board, books, supplies, and
Arizona's public universities. Their other personal expenses.
applications receive preferential
consideration at WlCHE schools.
Revised September
2007
ly growing popu-lation,
and a weli-documented
short-age
of trained
medical profes-sionals,
stagnant
appropriations be-tween
2002 and
2006 reduced fund-ing
from 201 stu-dents
to 149 stu-dents.
The 2007
appropriation re-stored
34 posi-tions.
The 2007- 08
appropriation re-stored
funding to
the 2002 level and
provided funding
for 203 students.
Therefore, for the
last two years we
have been able to
support 68 new-start
students. For
2008- 09, we are
seeking to keep
the new- start
level at 68.
Special points of
interest:
The 2008- 09
WlCHE PSEP
budget request is:
$ 4,673,828.
This budget re-quest
to support
221 students is
$ 558,794 greater
than the 2007- 08
appropriation.
Page 2
As a result of this gracious
award I am able to fulfill my
dream of becoming a
physician.
Amy Patel. student, Kirksv~ lle
College of Osteopath~ cM ed~ cine
I am greatly appreciative
that my professional
development was assisted
by the State of Arizona.
Henry Leung, 0 0
Klrksv~ lleC ollege of
Osteopath~ cM edic~ ne
HOW IS THE WlCHE PROGRAM FINANCED?
The State ( through general fund appropriations) pays a support fee to the university that
the Arizona resident attends. The fee covers part of the cost- of- education. This arrange-ment
provides Arizona students with increased access to established out- of- state or
private instate professional programs at reduced tuition rates. It also saves the State
millions of dollars by relieving Arizona of the need to establish and support these costly
medical programs.
DO STUDENTS CONTRIBUTE FINANCIALLY TO
THIS PROGRAM?
In return for the financial support provided by the State, Arizona WlCHE recipients must
practice one year in Arizona for each year of support or repay 50 percent of the. funds
paid on their behalf, plus interest. Students who practice in an underserved Arizona
community receive one year of state service credit for each six months of practice.
Monetary repayments made by former recipients are deposited to the state general
fund.
WHAT ARE ARIZONA'S FUTURE NEEDS FOR
THESE TRAINED MEDICAL PROFESSIONALS?
According to the U. S. Bureau of Labor Statistics, by the year 2015, the demand for prac-titioners
In the six areas of WICHE- study sponsored by Arizona, is expected to grow,
nationwide, by:
Physician Assistants 48 percent or more
Occupational Therapists 33 percent or more
Osteopaths 25 percent or more
Optometrists 20 percent or more
Veterinarians 18 percent or more
Dentists 15 percent or more
Arizona's demand for professional practitioners is expected to at least match national
rates. According to the U. S. Bureau of the Census, Arizona is one of the fastest grow-ing
states in the country, with more than 1.6 million people moving into the state by the
year 2025. This rapid growth and changes in these industries will have an upward push
on the demand for practitioners in these medical fields. For example, due to the emer-gence
of managed care plans, doctors of optometry are in demand as primary eye care
providers.
WHAT IS THE LEVEL OF SUPPORT IN THE
CURRENT BUDGET REQUEST?
The 2008- 09 Budget Request seeks $ 4.6 million to support 221 students. The 2006- 07
appropriation restored 34 of the 52 positions eliminated since 2001- 02. The 2007- 08
appropriation restored the remainder of the positions and returned the number of stu-dents
supported to the 2001- 02 level. Therefore, for the last two years we have been
able to support 68 new- start students each year. We are seeking to continue to support
68 new- start students and the 153 continuing students for 2008- 09, for a total of 221
students.
The WlCHE program
3tly reduced the amount
f debt I accumulated
Ina Ghorab, DDS
? rslly of Ihe Pac~ f~ c
I am very grateful for
lavlng been given this
ant and look forward to
ling back to the Arizona
ommunity for years to
cornel
5 Murphy D D S
erslty of the Pac~ f~ c
Revised September 2007
Although the need for trained medical professionals continues to increase in Arizona, funding
for the WlCHE program has not kept up with the need for student access and population
growth over the last several years. As the chart above indicates, during fiscal year 2001- 02,
the State appropriated funding for 201 students. Notwithstanding the Legislature's appropria-tion,
as a result of that year's budget reversion, only 178 students were supported. During
fiscal year 2005- 06, the same appropriation provided funding for 149 students. Over a five-year
period the same appropriation provided funding for 52 fewer students. Therefore, the
Board sought and received funding to restore 34 of the lost positions for a total of 183 stu-dents
during 2006- 07. The 2007- 08 appropriation restored the program to the 2001- 02 level
and provided funding for 203 students. Therefore, funding for new- start students has been at
68 students for the past two years. The 2008- 09 budget request is to fund 153 continuing
students and 68 new- start students. The amount required to fund the 221 students in the
budget request is $ 4,673,828. This amount is $ 558,794 greater than the 2007- 08 appropria-tion.
However, if the Legislature appropriates the 2007- 08 amount of $ 4,115,034 during
2008- 09, that same appropriation will provide funding for only 42 new- start students, due to
slight tuition increases at the participating schools.
Page 3
LEGISLATIVE SUPPORT
-
Students Supported
20 1
17% ( actual)
163
161
157
149
183
203
Year
200 1 - 02
2002- 03
2003- 04
2004- 05
2005- 06
2006- 07
2007- 08
Traditionally, the Arizona Legislature has been very supportive of Arizona's participation in
the WlCHE Professional Student Exchange Program. The reasons cited for this support are:
Appropriation
$ 3,282,400
$ 2,934,700 ( actual)
$ 2,908, I 00
$ 2,908,100
$ 2,908,100
$ 2,908,100
$ 3,571,353
$ 4,115,034
1. The state's obligation to provide educational opportunities for residents who want
to be dentists, occupational therapists, optometrists, osteopaths, physician assistants
and veterinarians.
2. The avoidance of the need to develop and maintain these costly professional
programs in Arizona.
3. The knowledge that Arizona cannot rely solely on in- migration to provide all of the
trained medical professionals needed in the future.
4. The WlCHE program provides an incentive for returning graduates to practice in
the underserved areas.
Page 4
We look forward to returning
Arizona to practice after gradu;
Just~ n8 M~ chelleK ohls, students
Un~ versltyo f Southern Cahfornla
College of Optometry
Arizona Board of Regents
2020 North Central Avenue
Suite 230
Phoenix, Arizona 85004
Phone: 602- 229- 2500
Fax: 602- 229- 2555
WICHE
HOW COST EFFECTIVE IS WICHE?
The State's involvement in the WICHE Professional Student Exchange
Program has and continues to be a positive step in providing additional
access to Arizona's students. Moreover, the PSEP has proven to be an
efficient, cost effective, and beneficial resource for Arizona. The average
annual cost of educating a student through the WICHE Professional
Student Exchange Program is $ 21,148. There is no more economical
way to educate Arizona's future dentists, occupational therapists,
optometrists, osteopaths, physician assistants, and veterinarians than
through participation in the WICHE PSEP. If Arizona built and maintained
public colleges in the six fields supported through WICHE- PSEP, the cost
would run into several hundred million dollars annually. For example,
Colorado State university reports that total direct expenditures for the
College of Veterinary Medicine during academic year 2004- 05 was $ 88.5
million. The total WICHE- PSEP budget request is $ 4.6 million. This is a
relatively small amount to pay in a high- growth state suffering from a
shortage of trained medical professions. Also, through participation in the
exchange program, Arizona can offer its students the opportunity to earn
needed degrees, while assisting in meeting the State's needs for these
medical professionals. More important, state resources are used
effectively to serve the needs of the student as well as the State.
WHAT EFFECT WILL IT HAVE ON THE
BOARD IF THIS BUDGET REQUEST IS
NOT FULLY FUNDED?
Failure to fully fund this budget request will:
1. Limit the Board's ability to provide access to professional
medical training for Arizona residents seeking to become
osteopaths, dentists, optometrists, veterinarians, occupational
therapists, and physician assistants;
2. Limit the Board's ability to help provide trained medical
professionals for Arizona, especially in the rural and underserved
Arizona communities. The rural and underserved areas of the
State are currently experiencing a severe shortage of these
medical professionals.
Learn More ...
For further information on Arizona's participation in WICHE, contact:
Louise Lynch, Arizona WICHE Certifying Officer, at
llynch@ azregents. edu or 602- 229- 2563. [ WICHE 09 pub]
