1. Critical Issues Facing SUNY Community Colleges Open Access Resources Community College Image Transfer and Articulation Growth/Capacity Turnover Accountability Measures Faculty Development Comprehensiveness Job Market Needs

2. Critical Issues for NCCC Efficiency/Accountability Resources Growth/Capacity Accountability Measures

3. Critical Issue: Resources Challenge of ensuring that sufficient resources are available to effectively fulfill the college mission Because of limited resources there is only “so much to go around” to meet broad array of identified needs, therefore make best use of what IS available

4. Critical Issue: Growth/Capacity Challenge of ensuring sufficient capacity to accommodate increasing demand How does the college maintain a broad array of programs (including some low enrolled) while reallocating resources to growing programs?

5. Critical Issue: Accountability Measures Challenge of ensuring that the college is responsive to public demands for accountability Local sponsor becoming more concerned about getting value for dollars spent: tuition cost (“user fee”) vs. increasing taxes; number of students per class; greatest utilization of expensive equipment

6. SUNY CC Strategic Plan Goal 7: Quality and Accountability The challenge of ensuring that institutions and the system are responsive to public demands for accountability and to identification of appropriate measures

7. SUNY Plan Strategy NCCC Activities Increase strategies to redirect resources to high priority areas as a result of cost efficiencies and savings achieved Develop costing model to be used as part of five- year academic program review Solicit input for model testing Educate BOT on variables and prepare for program closures Resist delays

8. An Overview of Program* & Discipline** Costs Related to Faculty Instruction *Program refers to a student’s major, their intended degree; **Discipline is a specific knowledge area, e.g., psychology, accounting, history, music.

9. Key Cost Variables Faculty instructional salary and fringe Technical Assistant salary and fringe for TAs directly involved in classroom instruction

10. Key Revenue Variables Tuition State Aid Chargebacks Fees

11. The Role of Credit Courses Faculty contact hours are taught either: ONLOAD – part of normal full-time load OVERLOAD – in addition to normal load PART-TIME – adjunct faculty

12. Annual Required Faculty Contacts for FT Workload DisciplineLectureLab Most Disciplines 3036 Nursing 32 Education 24 Type of Contact

13. Paying for Faculty Contact Hours Full-time faculty receive their salary and are required to teach a full contact hour load (ONLOAD) Part-time and overload contact hours are paid at an hourly rate (OVERLOAD, PART-TME)

14. The Approach to Determining Costs Related to Teaching Average annual FT faculty salary and fringe / # contact hours = cost for a FT contact hour e.g., $70,000 (salary) + $20,000 (fringe) = $90,000 / 30 (contact hrs) = $3,000 for one FT lecture contact hour - $2,500 for one FT lab contact hour Apply the FT rate to contact hours taught by FT faculty onload Apply the part-time/overload rate to contact hours taught by part- time faculty or full-time faculty teaching overload

15. Revenue Generation An average rate for revenue per student credit hour was determined by the VP for Finance The rate included revenue from tuition, fees, State Aid, and chargebacks for out-of- county students The rate for Fall 2004-Spring 2005 was $217.87 per student credit hour

16. Determining Revenue The sum of student credit hours for each discipline was calculated Using the average revenue per student credit hour ($217.87), the total revenue associated with each discipline was determined (# student credit hours x 217.87 = revenue) e.g., History courses = 3,000 SCH * $217.87 = $653,610 in revenue from History courses

17. Comparing Costs and Revenue Having established the costs for teaching instruction and the revenue generated for each discipline, it is possible to subtract costs from revenue to determine the difference Dividing the difference by the number of student credit hours in each discipline results in the “Economic Impact per Student Credit Hour” for each discipline The economic impact can be positive or negative

18. The “Cost of Programs” Knowing the economic impact for student credit hours in each discipline, it is possible to determine the economic impact of each program at NCCC by multiplying the number of student credit hours taken in each discipline in each program by the economic impact per student credit hour for that discipline

19. Example Student Credit Hours by Discipline and Program Account -ing Fine Arts Liberal Arts Total ACC2000 ART010020120 BUS1503045 HIS325100128 PSY035125160 Total38160275473

20. Summary The economic impact of both disciplines and programs is a function of faculty contact hours (the basis for costs) and student credit hours (the basis for revenues) The economic impact can be positive or negative

21. What Accounts for Variations in Economic Impact? Student/faculty ratio – the lower the S/F ratio (the number of students per faculty member) the more likely it is that the economic impact will be negative; the higher the S/F ratio the more likely it is that the economic impact will be positive Proportion of contact hours taught by full-time faculty – the higher the proportion of FT faculty, the more likely it is that the economic impact will be negative; the lower the proportion, the more likely the economic impact will be positive

22. Summary The economic impact of both disciplines and programs is a function of faculty contact hours (basis for costs) and student credit hours (basis for revenues) Other variables need to be tested –Equipment costs (digital media vs. history) –Supply costs –Space requirements (nursing and/or computer labs)

23. Economic Impact The “impact” needs to relabeled because “Economic Impact” has broader connotations In this model, economic impact literally only deals with dollars and cents, and not the value of the program to the community Must consider expectations of: –BOT and Mission/Vision –Local Sponsor (19 legislators) –Community –Faculty and Staff

24. Issues for Trustees Approving the basis of the model used for program costing –Supporting broad-based involvement –Agree on variables included –Agree on definitions Actual faculty cost vs. average faculty cost Whether to account for other faculty responsibilities such as advisement Making management accountable for meeting mission/vision of college in context of program costing strategies selected Supporting management in applying program costing data to decision making –Constituents crying FOUL!

25. Contact Dr. Mary Jane Feldman Feldman@niagaracc.suny.edu Dr. James Klyczek Klyczek@niagaracc.suny.edulyczek@niagaracc.suny.edu