AIR 50TH ANNUAL FORUMJUNE 2009

TERRI MANNING,ED.D AND LORI ALEXANDERCENTRAL PIEDMONT COMMUNITY COLLEGE

What Do Academic Programs Cost?

How to Conduct a Cost Study to Inform the Administration and Compare Costs Across Disciplines

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).

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.

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

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.

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.)

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.

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 hourLet’s look at two examples

One low cost – the College makes moneyOne costly – the College loses money

An Example from a Low Cost Department

English, Reading and Humanities Division

PRE Prefix Subject FTE 07-08

Cred. Hrs State

State Amt. per

credit hour

CountyCounty

Amt. per credit hour Total State and

CountyTotal per

credit hour

Div Office $8,595.71 $1,101.61 $9,697.32

COE Co-op 2.51 80 . .

ENG English 1264.8 40,472 . .

HUM Humanities 68.18 2,182 . .

JOU Journalism 10.22 327 . .

PHI Philosophy 5.07 162 . .

RED Reading 348.62 11,156 . .

REL Religion 34.41 1,101 . .

Sub-total 1733.8 55,480 $2,767,163.41 $49.88 $124,335.71 $2,891,549.00

Total 1733.8 55,480 $2,775,759.12 $50.03 $125,437.32 $2.26 $2,901,196.44 $52.29

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.

An Example from a High Cost Department

Health Science Division – Dental Hygiene and Dental Assisting

PRE Prefix Subject FTE 07-08 Cred. Hrs State

State Amt. per credit

hourCounty

County Amt. per

credit hour Total State

and County $ cred hr

DEN Dental Assisting 90.63 2,900 $415,983.86 $54,344.93 $470,328.79 $162.17

Division Cost (22.5%) $70,125.31 $7,512.67 $77,637.99

Total Dental Assisting 90.63 2,900 $486,109.17 $167.61 $61,857.60 $21.33 $547,966.78 $188.94

DEN Dental Hygiene 24.25 776 $402,275.12 $41,042.63 $443,317.75

Division Cost (6%) $18,700.08 $2,003.38 $20,703.46

Total Dental Hygiene 24.25 776 $420,975.20 $542.49 $43,046.01 $55.47 $464,021.21 $597.97

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.

Two Entire ProgramsCost of Respiratory Therapy Program

Course Hours Cost/hr Total Cost FTE repayrequired courses $112.18 BIO 163 5 $56.05 $280.24 $518.40

MED 120 2 $111.82 $223.64 $224.36 RCP 110 4 $155.50 $622.00 $448.72 RCP 111 5 $155.50 $777.50 $560.90 RCP 113 2 $155.50 $311.00 $224.36 RCP 114 3 $155.50 $466.50 $336.54 RCP115 2 $155.50 $311.00 $224.36 RCP 122 1 $155.50 $155.50 $112.18 RCP 123 1 $155.50 $155.50 $112.18 RCP 210 4 $155.50 $622.00 $448.72 RCP 211 4 $155.50 $622.00 $448.72 RCP 214 2 $155.50 $311.00 $224.36 RCP 222 1 $155.50 $155.50 $112.18 RCP 145 5 $155.50 $777.50 $560.90 RCP 152 2 $155.50 $311.00 $224.36 RCP 235 5 $155.50 $777.50 $560.90 RCP 247 7 $155.50 $1,088.50 $785.26 Gen Ed

ENG 111 3 $52.29 $156.88 $311.04 ENG 112 3 $52.29 $156.88 $311.04 COM 110 3 $71.52 $214.56 $311.04 MAT 121 3 $43.77 $131.31 $311.04 PSY 150 3 $46.34 $139.02 $311.04

HUM 3 $52.29 $156.87 $311.04

Total 73 $8,923.40 $7,993.64 Cost to CPCC -$929.76

Cost of Simulation and Gaming Course Hours Cost/hr Total Cost FTE repay

required courses $103.68 SGD 111 2 $108.14 $216.28 $207.36 SGD 112 2 $108.14 $216.28 $207.36 SGD 113 2 $108.14 $216.28 $207.36 SGD 114 2 $108.14 $216.28 $207.36 SGD 212 2 $108.14 $216.28 $207.36 SGD 213 2 $108.14 $216.28 $207.36 SGD 214 2 $108.14 $216.28 $207.36 SGD 285 2 $108.14 $216.28 $207.36 SGD 289 2 $108.14 $216.28 $207.36 SGD 122 2 $108.14 $216.28 $207.36 SGD 123 2 $108.14 $216.28 $207.36 COE 111 1 $108.14 $108.14 $103.68

Technical Electives6 hours 6 $108.14 $648.84 $622.08 Gen Ed

ENG 111 3 $52.29 $156.88 $311.04 ENG 114 3 $52.29 $156.88 $311.04 COM 110 3 $71.50 $214.50 $311.04 MAT 121 3 $43.77 $131.31 $311.04

HUM 3 $52.29 $156.87 $311.04 SOC 3 $46.34 $139.02 $311.04

Total 47 $4,091.52 $4,872.96

Cost to CPCC $781.44

Variations in CostThe 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

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

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.

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

Observations about FTE GrowthThe 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

Top

20 Highest Enrolled Courses for 07-08 (3,957 FTE or 32.8%)

Next Step: Plot the Programs into 1 of 4 Categories

CostsTrends

Results of the Study

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.

Programs of Focus: High Cost

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

Results of Campaign

Over $500,000 was received in cash gifts and pledges

Donations of equipment and supplies

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)

Questions or Comments?For More Information:Lori Alexander, Assistant to the VP, Learning UnitCentral Piedmont Community CollegeP) 704-330-6853E) lori.alexander@cpcc.edu

Terri Manning, Assoc. VP Institutional Research& Director, Center for Applied Research Central Piedmont Community CollegeP) (704)330-6592E) terri.manning@cpcc.edu