1. AIR 50 TH ANNUAL FORUM JUNE 2009 TERRI MANNING,ED.D AND LORI ALEXANDER CENTRAL PIEDMONT COMMUNITY COLLEGE What Do Academic Programs Cost? How to Conduct a Cost Study to Inform the Administration and Compare Costs Across Disciplines

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 English, Reading and Humanities Division PREPrefix Subject FTE 07- 08 Cred. Hrs State State Amt. per credit hour County County Amt. per credit hour Total State and County Total per credit hour Div Office $8,595.71 $1,101.61 $9,697.32 COECo-op2.5180.. ENGEnglish1264.840,472.. HUMHumanities68.182,182.. JOUJournalism10.22327.. PHIPhilosophy5.07162.. REDReading348.6211,156.. RELReligion34.411,101.. Sub-total1733.855,480$2,767,163.41$49.88$124,335.71 $2,891,549.00 Total1733.855,480$2,775,759.12$50.03$125,437.32$2.26$2,901,196.44$52.29

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 Health Science Division – Dental Hygiene and Dental Assisting PREPrefix Subject FTE 07-08 Cred. HrsState State Amt. per credit hour County County Amt. per credit hour Total State and County$ cred hr DENDental Assisting90.632,900$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 Assisting90.632,900$486,109.17$167.61$61,857.60$21.33$547,966.78$188.94 DENDental Hygiene24.25776$402,275.12 $41,042.63 $443,317.75 Division Cost (6%) $18,700.08 $2,003.38 $20,703.46 Total Dental Hygiene24.25776$420,975.20$542.49$43,046.01$55.47$464,021.21$597.97

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 Cost of Respiratory Therapy Program CourseHoursCost/hrTotal CostFTE repay required courses $112.18 BIO 1635$56.05$280.24$518.40 MED 1202$111.82$223.64$224.36 RCP 1104$155.50$622.00$448.72 RCP 1115$155.50$777.50$560.90 RCP 1132$155.50$311.00$224.36 RCP 1143$155.50$466.50$336.54 RCP1152$155.50$311.00$224.36 RCP 1221$155.50 $112.18 RCP 1231$155.50 $112.18 RCP 2104$155.50$622.00$448.72 RCP 2114$155.50$622.00$448.72 RCP 2142$155.50$311.00$224.36 RCP 2221$155.50 $112.18 RCP 1455$155.50$777.50$560.90 RCP 1522$155.50$311.00$224.36 RCP 2355$155.50$777.50$560.90 RCP 2477$155.50$1,088.50$785.26 Gen Ed ENG 1113$52.29$156.88$311.04 ENG 1123$52.29$156.88$311.04 COM 1103$71.52$214.56$311.04 MAT 1213$43.77$131.31$311.04 PSY 1503$46.34$139.02$311.04 HUM3$52.29$156.87$311.04 Total73 $8,923.40$7,993.64 Cost to CPCC -$929.76 Cost of Simulation and Gaming CourseHoursCost/hrTotal CostFTE repay required courses $103.68 SGD 1112$108.14$216.28$207.36 SGD 1122$108.14$216.28$207.36 SGD 1132$108.14$216.28$207.36 SGD 1142$108.14$216.28$207.36 SGD 2122$108.14$216.28$207.36 SGD 2132$108.14$216.28$207.36 SGD 2142$108.14$216.28$207.36 SGD 2852$108.14$216.28$207.36 SGD 2892$108.14$216.28$207.36 SGD 1222$108.14$216.28$207.36 SGD 1232$108.14$216.28$207.36 COE 1111$108.14 $103.68 Technical Electives 6 hours6$108.14$648.84$622.08 Gen Ed ENG 1113$52.29$156.88$311.04 ENG 1143$52.29$156.88$311.04 COM 1103$71.50$214.50$311.04 MAT 1213$43.77$131.31$311.04 HUM3$52.29$156.87$311.04 SOC3$46.34$139.02$311.04 Total47 $4,091.52$4,872.96 Cost to CPCC $781.44

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 FTE between 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 FTE or 32.8%)

20. Next Step: Plot the Programs into 1 of 4 Categories High Growth/ Programs with decreasing costs above the state reimbursement rate that are growing enrollment. High Cost Programs Programs with increasing costs above the state reimbursement rate that are growing enrollment. Trends High Growth/ Programs with decreasing costs below the state reimbursement rate that are growing enrollment. Low Cost Programs Programs with increasing costs below the state reimbursement rate that are growing enrollment. Enrollment Low Growth/ Programs with decreasing costs below the state reimbursement rate that are declining in enrollment. Low Cost Programs Programs with increasing costs below the state reimbursement rate that are declining in enrollment. Low Growth/ Programs with decreasing costs above the state reimbursement rate that are declining in enrollment. High Cost Programs Programs with increasing costs above the state reimbursement rate that are declining in enrollment. CostsTrends

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.edulori.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.eduterri.manning@cpcc.edu