1. WVVLN Distance Education Forum Return on Investment (ROI) Discussion MU Library Example Sub-committee on Higher Education State Authorizations June 3, 2011 Monica Brooks & Crystal Stewart

2. For Your Consideration- New and impending regulations require that every school evaluate over-all cost of providing certain distance education degree programs in various states. For the first time many of us will need to apply cost-per-use (CPU) models similar to those used in other university departments to establish program delivery priorities. What we do in library-land: Due to forced publisher inflation (can fluctuate 7-12% annually) libraries have used CPU models for decades to continually evaluate subscriptions, services, and patron cost models. Due to forced publisher inflation (can fluctuate 7-12% annually) libraries have used CPU models for decades to continually evaluate subscriptions, services, and patron cost models. A just-in-case attitude toward purchases of books and journals is longer acceptable. Most libraries now operate under a just-in-time model due to budget constraints, patron use trends, and technology proliferation. A just-in-case attitude toward purchases of books and journals is longer acceptable. Most libraries now operate under a just-in-time model due to budget constraints, patron use trends, and technology proliferation. Interlibrary loan (ILL) is a great example. Reciprocal programs and consortiums have been forged within and among states to avoid escalating costs while providing the same levels of service.

3. ILL Cost Example - MU Even with regional reciprocal programs in place, ILL consist of about $1,500 in OCLC network charges each month. OCLC Annual subscription to a multi-state borrowing consortium like PALCI provides access to over 30 million titles for about $30,000 per year (includes membership fees, software, staff training, etc.) Annual subscription to a multi-state borrowing consortium like PALCI provides access to over 30 million titles for about $30,000 per year (includes membership fees, software, staff training, etc.)PALCI The MU library system pays about $10,000 in copyright costs to the CCC annually to be in compliance with Title 17 of the US Code. The MU library system pays about $10,000 in copyright costs to the CCC annually to be in compliance with Title 17 of the US Code.CCC Annual postage and supplies are another $10,000; and staffing adds 130K (with benefits - 3.5 FTE). Annual postage and supplies are another $10,000; and staffing adds 130K (with benefits - 3.5 FTE).

4. Reciprocal Programs The total for ILL is about $200,000 annually for network, supplies, postage, and staff. Approximately 20,000 items are borrowed and loaned each year. MU pays an average of about $10 per item. MU pays an average of about $10 per item. RLG/ACRL studies show that an ILL transaction may cost a university up to $30 per item without consideration for special borrowing programs (. RLG/ACRL studies show that an ILL transaction may cost a university up to $30 per item without consideration for special borrowing programs ( ED364242). ED364242 Participation in reciprocal programs and consortium agreements saves MU about $20 per each ILL transaction! Participation in reciprocal programs and consortium agreements saves MU about $20 per each ILL transaction!

5. Digital Resources – Best Bargains Metrics for database subscriptions and e-journal packages also aid in the decision-making process when considering ILL vs. purchase of full text digital titles: Science Direct Elsevier = $82,727/yr with 68,000 uses at $1.22 per use Science Direct Elsevier = $82,727/yr with 68,000 uses at $1.22 per use Springer Online = $55,956/yr with 56,200 uses at.99 per use Springer Online = $55,956/yr with 56,200 uses at.99 per use Even with cost-saving ILL programs in place, the cost to obtain the same items listed above via ILL would be over 1.2 million dollars annually. If/when library holdings stop being cost-effective, this is one of the major factors considered prior to cancellation. Other factors include accreditation requirements, ongoing research needs, etc.

6. Add to the discussion! This exercise was designed to give us another perspective on how some units on a college campus use metrics and cost factors to make collection or service decisions. At MU we count everything we buy, use, or do! While this is a tedious task it actually pays-off if/when we have to make tough decisions or revise services to our users. Do you have a CPU model that you can share with the group? Monica Brooks, Marshall Univ. brooks@marshall.edu (304)696-6474