CBE Tuition Modeling Viable, Fair, Competitive UNC CBE Summit 2017 Presenters Randy Mills, Vice Chancellor Finance & Administration Constance Mallette, Associate Vice Chancellor Finance & Administration May 25, 2017

Overview About Us & the CBE Pilot Funding Models/Assumptions Challenges Outlook

About Us Winston Salem State University, founded in 1892 University of North Carolina System of Higher Learning Current Enrollment ~ 5200 students Program Offerings: 40+ Undergraduate Programs Over 7 Graduate Programs 2 Doctoral Programs Doctorate of Nursing Practice Doctorate of Physical Therapy Certifications & Non Degree Seeking Programs

Disclaimer Infancy stage Pilot program Fall 2017 Still researching and assessing Open to your dialogue, ideas, and approaches

Fall 2017 CBE Selected Programs *Master of Health Administration Pilot will begin with incoming cohort of 20 students RN-BSN Accelerated Program Fall program will enroll about 5 students

TUITION FUNDING MODEL FORMULAS Full Time Equivalency Primarily Face-to-Face w/ some Internet Base Delivery Stair Step; Billing with a Cap Tuition + State Appropriation Regular Term Per Semester Credit Hour Primarily offered away from campus or Internet Basis No Stair Step; No Billing Cap; Pay for each Credit Hour Distance Learning/ Education

Enrollment Funding Model Student Credit Hours SCH Per Instructional Position Fac. Positions Required Carnegie Undergraduate Masters Doctoral Undergrad Undgrad. Program Category   Category 1 708.64 169.52 115.56 0.000 Category 2 535.74 303.93 110.16 Category 3 *360 406.24 **186.08 109.86 1.933 0.0000 Category 4 232.25 90.17 80.91 Total 360 Percent of Total Group Total Revenue Fac. Balance Total Positions Required  Model Assumptions Instructional Salary Rate of Campus $75,000   20 Master Students (FTE) Instructional Salary Amount $140,493   9 Credit Hours Per Other Academic Costs 44.89% $63,068   Semester Total Academic Requirements $203,561   360 SCH per semester Library Rate 11.48% 23369 Gen'l Insit. Support Rate 54.05% $ 216,192 Total Cost of Education: 443,122

UNC Funding Model—Regular Term Cost of Education: $443,122 = $154,880* + $288,242 Regular Term Tuition (360 SCH): $154,880 Appropriation: $288,242 State Appropriation=Cost of Education-Less Tuition Receipts *1 FTE Tuition ($3,872) x 20 FTE x 2 Terms = 154,880

SCH Enrollment Funding Model Student Credit Hours SCH Per Instructional Position Fac. Positions Required Carnegie Undergraduate Masters Doctoral Undergrad Undgrad. Program Category   Category 1 708.64 169.52 115.56 0.000 Category 2 535.74 303.93 110.16 Category 3 360 406.24 186.23 109.86 1.933 0.0000 Category 4 232.25 90.17 80.91 Total Percent of Total Group Total Revenue Fac. Balance Total Positions Required Instructional Salary Rate of Campus $75,000  Model Assumptions Instructional Salary Amount $140,493   20 Master Students Other Academic Costs 44.89% $63,068   9 Credit Hours Per Total Academic Requirements $203,561   Semester   360 SCH per semester Library Rate 11.48% 23369 Gen'l Insit. Support Rate 54.05% $ 216,192 Total Annual Cost of Education: 443,122

UNC Funding Model—Distance Learning Cost of Education: $443,122 = $66,989 + $376,133 Distance Learning Tuition ($186.08/SCH): $66,989 Appropriation: $376,133 State Appropriation=Cost of Education-Less Tuition Receipts *1 SCH Tuition ($186.08) x 9 SCH x 20 student x x 2 Terms = $66,989

First Six Year Average CBE Cost/Student (Four Institutions)

Development and Delivery Costs “Unbundling” of faculty/staff roles: Faculty instructional designers Assessment experts (faculty) Enrollment coaches (admissions, student accounts, financial aid, etc.) Academic success coaches (counselors) Mentoring faculty Learning outcomes assessors Cost Drivers—captured to varying degrees in Funding Model: Academic program (43% to 50%) Instit. Support services: New/modified infrastructure, processes, systems (general institutional, marketing, student services) Technology: high initially, per student cost comes down at scale (19% to 8%)

CHALLENGES Establishing opportunities for the students to save money while still receiving thorough competitive education Program is competitively, fairly, & viably priced Department of Education – Financial Aid Withdrawal policy / Student Refund Policy (for blocked models) No Direct Assessment Option (Students will not be able to “test out” of a competency via an assessment) Expenses exceed Revenue / Program can’t be self-sustained Unchartered UNC system territory Variety of choices, options and models across various CBE programs Conversations – Semester Credit Hour vs. Competency

FUNDING MODEL OUTLOOK Research has shown these programs are not money-making ventures. Typically many have not seen a breakeven point for the first 5 years. Anticipate half the cost of traditional academic programs by year 6 (saving projected to extend across academic programming, student services, and institutional support activities) Probably requires funding model at UNC System level + supporting appropriations. Competency vs Credit Hour Provide consistency on managing/modeling CBE throughout the UNC system

QUESTIONS /DISCUSSION