1 / 16

SHEEO Summer 2004

SHEEO Summer 2004. Financing Online Education: Building Sustainable Enterprises Laura M. King Vice Chancellor of Finance Minnesota State Colleges and Universities. Minnesota State Colleges and Universities. 15 member Board of Trustees appointed by the Governor 7 universities and 25 colleges

edana
Download Presentation

SHEEO Summer 2004

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. SHEEOSummer 2004 Financing Online Education: Building Sustainable Enterprises Laura M. King Vice Chancellor of Finance Minnesota State Colleges and Universities

  2. Minnesota State Colleges and Universities • 15 member Board of Trustees appointed by the Governor • 7 universities and 25 colleges • 137,000 FYE, 250,000 annual students, 150,000 non credit students, 16,000 employees • 27% enrollment increase 1999-2003 • 53 physical locations across the state

  3. Expectations of Higher Education in Mn • Contain costs • Absorb inflationary pressures • Increase output • Be innovative • Internally fund escalating demand for online

  4. MnSCU Online Activity • Term includes full and partial on line delivery • 900%+ growth in past three years • 27,800 registrations sold in FY2003 • 1000 + credit based e learning courses • 500 non credit courses

  5. Integrated Governance • Created Mn Online Council in 2001 – chancellor’s office and institutional leaders • Council advises Sr Vice Chancellor/Cabinet/Chancellor • Coordinates with presidential leadership council of 32 presidents • No separate legal authority

  6. Integrated Governance • 3 year finance plan established • Sr. Vice Chancellor, on behalf of the Council granted accreditation powers in 2003 • In –house review teams trained and at work • Uniform pricing, quality assurance and program coordination system wide

  7. MN Online Central and Core Services • Virtual library and faculty training centers • Degree and Course alignment tools • E-folio and electronic career assistance • Electronic transfer index

  8. Cost Management for Online Enterprises • Who should be the benchmark? • Private online providers? • Public online providers? • What to measure? • Real costs (fixed and variable) • Innovation • Resources for reinvestment • How to measure it? • Number of new programs? • Number of new student segments?

  9. Policy Implications • Robustness of reinvestment choice • Scalability • Repurpose ability • Centralized vs. decentralized services • System approach • Non-redundancy of services • Management of scarce resources • Private-sector partnerships • Joint risk-sharing • Investment capital

  10. MN Online Cost Categories Design & Development • Delivery • Assessment • Reinvestment

  11. MN Online Cost Categories Reinvestment Costs • Course/Program Redesign • Repurposing curriculum into similar market segments • Curriculum Management Process • Engaging Partners

  12. MN Online Fiscal Model • Blended Approach - % of operations is funded through a central source - % of operations is funded through assessing user fees

  13. MN Online Funding Model FY05 - FY09 • Year 1: Revenues derived from students, campus allocations, grants, internal partnerships, and external contracts for services • Year 2: Revenues from students and campuses fixed to Year 1, increased internal support, and expanding external contract dollars • Year 3: Revenues = Expenses • Year 4: Residual cash targeted to reinvestment strategies • Year 5: Sustainable growth from revenues, cost management, and reinvestment strategies

  14. MN Online in 2004 • All 32 Minnesota State Colleges and Universities offer courses online • Approximately 18,065 students took at least 1 internet course • Minnesota State Colleges and Universities had served 45,074 online students • A 62% increase of credits for online courses over FY03 • FYEs at 4,215 for an increase of 1,620 over 2003 (June 2004) • The largest age group for enrolling in online courses was 21-25

  15. 2004-2006 Outlook • Maximize power of the system through designing & implementing an integrated student academic and administration service and usability • Develop a Marketing Plan for internal & external customers • Develop a comprehensive approach to assessment based on a continuous improvement model • Ensure financial viability of Minnesota Online & supporting projects/efforts

  16. Challenges in Sight • Widely divergent course development investment rates • Variable tuition rates • Program/course quality assurance • Course management support • Program development alignment/sharing across institutions

More Related