Meeting of the Board of Regents | December 2007

SUMMARY

Issue for Decision (Consent Agenda)

Should the Board of Regents approve the merger of DeVry Institute of Technology and Keller Graduate School of Management as DeVry College of New York?

Reason(s) for Consideration

Required by State Regulation.

Proposed Handling

The question will come before the Higher Education and Professional Practice Committee at its December 2007 meeting where it will be voted on and action taken.  It will then come before the full Board at its December 2007 meeting for final action.

Procedural History

On June 14, 1996, the Board of Regents authorized DeVry, Inc. to establish DeVry Institute of Technology in the New York City area, with authority to award the Associate in Applied Science (A.A.S.), Bachelor of Professional Studies (B.P.S.), and Bachelor of Technology (B.Tech.) degrees and to offer programs leading to those degrees.  On October 5, 2001, the Board authorized DeVry University, Inc. (a subsidiary of DeVry, Inc.) to establish the Keller Graduate School of Management in Long Island City, with a branch campus in Manhattan and authority to award the Master of Business Administration (M.B.A.) and Master of Science (M.S.) degrees and to offer programs leading to those degrees.  The two institutions have registered programs leading to those degrees.

Background Information

DeVry, Inc. currently operates two colleges in New York State, DeVry Institute of Technology and Keller Graduate School of Management.  When these institutions were first granted degree authority in New York State, DeVry established a Delaware corporation, DeVry, Inc., doing business as DeVry Institute of Technology. It used DeVry University, Inc., also a Delaware corporation, to do business as Keller Graduate School of Management.  Both entities currently operate this way.

DeVry Institute offers Associate in Applied Science, (A.A.S.), Bachelor of Professional Studies (B.P.S.), and Bachelor of Technology (B.Tech.) programs in the disciplines of Business, Engineering, and the Physical Sciences.  Its campus is located in Long Island City (Queens County), with an extension site in Manhattan. Keller Graduate School of Management is located on the premises of DeVry Institute’s Long Island City campus, with an extension center in Manhattan. Keller has not implemented its branch campus authority. It currently offers three programs: Master of Science (M.S.) programs in Accounting and Financial Management, and Information Systems Management, and a Master of Business Administration (M.B.A.) program in Management.

The Department has determined that the programs offered by both institutions meet registration standards.  Both institutions are accredited by the North Central Association of Colleges and Schools, which accredits all DeVry institutions.  In the fall of 2006, DeVry Institute of Technology had 1,128 students; Keller Graduate School of Management had 304.

The corporate parent, DeVry, Inc., is an Illinois corporation.  The parent company is now in the process of restructuring its corporations and would like to merge the colleges in New York State so that they will fall under one corporate parent.  As a result of the restructuring, DeVry, Inc. will become the sole corporation that has the authority to operate in New York. It would then file one certificate of assumed name as DeVry College of New York, which would encompass both campuses.

The corporation would then dissolve the authority to do business in New York of both Delaware corporations.

Recommendation

It is recommended that the Board of Regents grant DeVry, Inc., Oakbrook, Illinois, authority to do business as DeVry College of New York, with a campus in Long Island City, Queens, and a branch campus in Manhattan (New York County); to award the degrees of Associate in Applied Science (A.A.S.), Bachelor of Professional Studies (B.P.S.), Bachelor of Technology (B.Tech.), Master of Business Administration(M.B.A.), and Master of Science (M.S.); and to offer associate degree programs in the discipline area of Engineering, baccalaureate programs in the discipline areas of Business, Engineering, and the Physical Sciences, and master’s degree programs in the discipline areas of Business and the Physical Sciences; and that the Board terminate the separate authority granted to DeVry, Inc. on June 18, 1996, and to DeVry University, Inc. on October 5, 2001.

Timetable for Implementation

If the Board of Regents approves the merger and grant of degree powers, the College will proceed to merge their resources and register their programs under the new structure.