1. 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

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

3. 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

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

5. 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

6. 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

7. 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
  Credit Hours Per
Other Academic Costs
44.89%
$63,068
  Semester
Total Academic Requirements
$203,561
  SCH per semester
Library Rate
11.48%
23369
Gen'l Insit. Support Rate
54.05%
$ 216,192
Total Cost of Education:
443,122

8. 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

9. 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
  Credit Hours Per
Total Academic Requirements
$203,561
  Semester
  SCH per semester
Library Rate
11.48%
23369
Gen'l Insit. Support Rate
54.05%
$ 216,192
Total Annual Cost of Education:
443,122

10. 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

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

12. 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%)

13. 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

14. 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

15. QUESTIONS /DISCUSSION