Iowa State University Extension Fee Generation

1. Iowa State University Extension Fee Generation Julie Lyon Contract and Grant Accountant

2. Iowa State University Extension Agriculture Business and Industry Community and Economic Development Youth and 4-H Families

3. Iowa State University Extension first began developing it’s cost recovery policy in FY 2001 • Dr. Stanley R. Johnson, ISU Vice Provost for Extension, established a committee to consider alternative revenue sources and cost recovery strategies (user fees, institutes, grants and contracts) to continue funding quality programs and services • On March 23, 2001, the final draft of the “Recommendations to Guide Future Cost Recovery Policy for Iowa State University Extension” was completed.

6. Reasons for recovering the cost of providing these services • Era of increasingly tight budgets with reductions in federal and state budget allocations • Assure that Extension can maintain quality public programming by replacing the resources utilized by more specific requests • Assure that Extension is not unfairly handicapping private providers of commercial services by providing a free publicly subsidized alternative

7. Interim Administrative Handbook for Cooperative Extension Work, 1993 Chapter III, Financial Operations • Section J-16 of the administrative handbook states: • “7 CFR 3015, Subpart F, allows for the recipients of assistance to charge user fees that then will be counted toward program income. However, the imposition of user fees for core Extension educational programs is inconsistent with the statutory purposes of the Smith-Lever Act.”

8. Interim Administrative Handbook for Cooperative Extension Work, 1993 Chapter III, Financial Operations - Continued “Therefore, users fees may not be charged for education services especially if the proceeds are to be used to augment the operational cost of the Cooperative Extension Services in substitution of State appropriations for that purpose. However, it is permissible to charge fees for incidental costs if the proceeds are used in furtherance of Extension work.” Fees generated by ISUE are not used as a substitute for state funding; instead, the fees are used to supplement and replace (i.e. maintain, enhance, or expand) state funding used for the educational outreach of ISU Extension.

9. Extension programs and services are provided for the public good with general benefits to: Cross-section of society Society as a Whole

10. When we apply expertise gained in public programming to individual situations where the economic benefits accrue to a small easily defined population, Extension needs to recover the cost of providing those services. Wind Energy Market Analysis Farm Leasing and Estate Planning

11. Program Categories Category 1 – Programs/services fundamental to ISUE’s mission and which benefit society as a whole = no charge or a charge to cover out-of-pocket expenses Category 2 – Programs/services that are highly targeted and context specific (i.e. apply to a cross-section of society) = charge to cover out-of-pocket expenses plus personnel and travel costs

12. Program Categories – Continued Category 3 – Programs/services designed for specific individual, group, or business = charge to cover out-of-pocket expenses, personnel and travel costs, and system costs Category 4 – One-on-one consulting services provided to a specific individual, group, or business = program unit deter-mines the maximum number of consulting hours offered at no charge and sets a cost recovery fee that will be charged for con-sulting hours over the at no charge maximum

13. Guiding Principles • Advance ISUE’s mission • Be ethical, legal, and not compromise ISUE’s integrity • Used to maintain, enhance, or expand the educational outreach of ISUE • Support priority programs and services • Be the responsibility of all ISUE employees • Programs and services must be open to all regardless of the individual’s ability to pay

14. Guiding Principles - Continued • The cost/benefit ratio of programs must be examined and timely decisions made regarding the priority of the program or service • Improve teamwork and interdisciplinary efforts for an ever-increasing program/service impact • All ISUE personnel and Extension Councils will receive education and support for managing cost recovery fees

17. Database information can be sorted and printed in a wide variety of formats, such as: • By person • By program • By time period • Personnel Costs only • Travel only • Any combination of the above

18. ISU Extension County Offices Prior to 2009 Reorganization

20. ISU Extension User Fee Annual History

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