AIR 50 th Annual Forum June 2009 terri manninG,Ed.D and Lori Alexander

1. What Do Academic Programs Cost?How to Conduct a Cost Study to Inform the Administration and Compare Costs Across Disciplines AIR 50th Annual Forum June 2009 terrimanninG,Ed.D and Lori Alexander Central Piedmont Community College

2. Background • The College had 28,394 curriculum students in the 2008-09 academic year. • The College offers 197 associate degrees, certificates and diplomas in 47 program areas. • The College wanted to understand which programs were earning more or less than the FTE amount being paid by the state and which programs were breaking even. • The College produces graduates in many high cost fields such as healthcare and the students are hired before they graduate (great community need).

3. Reasons for the Study • To prioritize our allocated budget resources during tough economic times. • Help make the case for additional money from external sources (foundation, stimulus package, scholarships, local businesses and grants). • Help evaluate the performance of our programs (Road Map and Program Review processes). • Assist us with our strategic program planning.

4. Not a Function of the Study • CPCC does not make decisions to close programs based on the cost! • The only reasons programs are closed are for: • Changes at the system level • Lack of interest/low enrollment (consistent over multiple terms) • Program consolidation

5. Factors Utilized in the Study • Actual budget dollars expended by divisions in FY07-08 (data from Budgets). • All FTE students enrolled by pre-fix and course for Fall 2007 and Spring 2008 (data from FTE Reports). • Division administrative costs were pro-rated across programs based on a % of FTE’s. • A calculation resulting in credit hour generated. • A cost per credit hour generated was created to compare programs over a three-year period. • The CPCC cost per credit hour was also compared to the State reimbursement rate to determine ROI.

6. How it Was Actually Done • In the 2007-8 academic year, CPCC was paid $4,729 per FTE. $3,318 was allocated for instruction/instructional support and $1,411 to administration, student services and various support functions. • One FTE in NC is one student attending 16 hours per term times two terms – or 32 credit hours annually (512 contact hours). • So each credit hour was reimbursed by the state at approximately $103.70 (health programs were paid at $112.18.)

7. Financial Data • CPCC is a Datatel College. • We had the financial services area run a report on all expenses by departmental budget code from state and county funds. The report included all full and part-time salaries, equipment, expenses, teaching supplies, travel, etc. – everything but grant funds. • In NC all physical plant is the responsibility of the counties (facilities, utilities, security, etc.) • Mecklenburg County gives the College a salary supplement for all faculty and staff. That amount was added.

8. Financial Data • We ran the FTE report by budget code. • We calculated the number of credit hours generated from the FTE. • We calculated a cost per credit hour • Let’s look at two examples • One low cost – the College makes money • One costly – the College loses money

9. An Example from a Low Cost Department

10. What does this mean? • In the 2007-2008 academic year, the English, Reading and Humanities area earned 1,734 FTE in classes delivered. • Those FTE calculated into 55,480 credit hours generated. • Their total budget spent was $2,901,169 which equaled $52.29 spent per credit hour generated. • The College earned $103.70 per credit hour or $5, 753,276. • The College made$2,852,107 from English, reading and humanities.

11. An Example from a High Cost Department

12. What does this mean? • In the 2007-2008 academic year, the Dental Hygiene area earned 24.25 FTE and Dental Assisting earned 90.63 FTE in classes/clinicals delivered. • Those FTE calculated into 776 credit hours for Dental Hygiene and 2,900 for Dental Assisting. • The total budget spent in Dental Hygiene was $464,021 or $598 per credit hour and $547,967 in Dental Assisting or $189 per credit hour • The College earned $112.18 per credit hour (health programs bonus) or $412,373.68. • The College lost $376,969 for Dental Hygiene and $222,645 in Dental Assisting.

13. Two Entire Programs

14. Variations in Cost • The lowest costs per credit hour were from the general education departments: • Math = $43.77 • Behavioral and Social Sciences = $46.44 • Sciences = $56.05 • The highest cost programs were from Health Programs and Engineering: • Cytotechnology = $566.29 • Surgical Technology = $307.63 (new) • Computer Engineering = $306.41 • Electrical Engineering = $373.53

15. 48% of Programs Decreased Costs between 04-05 and 07-08

16. Observations about Program Costs • Program costs are most impacted by faculty salaries, equipment, technology, and class size. • Programs with large class sizes and faculty hired within the last several years have the lowest cost per credit hour generated. • Programs taught mostly by PT faculty have lower costs per credit hour generated. • Programs with smaller class sizes (due to accreditation requirements and more tenured faculty have higher costs per credit hour.

17. 79% of programs grew in FTEbetween 04-05 and 07-08

18. Observations about FTE Growth • The study was conducted in a year when the College experienced an enrollment increase of 12%. • Enrollment increases were largely due to: • introduction of new programs • addition of high-demand sections • increases in class cap sizes • growing number of online classes • convenience of six strategically located campuses • retention efforts

19. Top 20 Highest Enrolled Courses for 07-08 (3,957 FTEor 32.8%)

20. Next Step: Plot the Programs into 1 of 4 Categories Trends Costs

21. Results of the Study

22. Program Planning • Help us determine what objective to assign each program (or cluster of programs): • Hold. The objective is to maintain enrollment growth and a healthy ROI. • Subsidize. The objective is to seek industry support and funding to help underwrite costs. • Revitalize. The objective is to identify and invest resources selectively. • Divest. The objective is to divert resources where they can be better used elsewhere.

23. Programs of Focus: High Cost

24. Initial Objective: Subsidize • Industry Support and Funding was Sought to Help Underwrite our High Cost Healthcare Career Programs : • Cardiovascular Technology • Dental Hygiene • Nursing • Respiratory Care Technology • Surgical Technology • Cytotechnology • Health Information Technology • Medical Laboratory Technology

25. Results of Campaign • Over $500,000 was received in cash gifts and pledges • Donations of equipment and supplies

26. Next Objectives: • Focus on subsidizing the costs of our High Cost Trade Programs at the Harper Campus (next up for building expansion) • Focus on subsidizing the costs of our High Cost Engineering Programs (going through a Statewide Curriculum Improvement Process)

27. Questions or Comments? For More Information: Lori Alexander, Assistant to the VP, Learning Unit Central Piedmont Community College P) 704-330-6853 E) lori.alexander@cpcc.edu Terri Manning, Assoc. VP Institutional Research & Director, Center for Applied Research Central Piedmont Community College P) (704)330-6592 E) terri.manning@cpcc.edu