sheeo’s four-state cost study a webinar of findings and applications
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SHEEO’s Four-State Cost Study A Webinar of Findings and Applications. Paul Lingenfelter Sharmila Basu Conger SHEEO Dennis Jones NCHEMS October 13, 2010. Functions of Cost Analysis. Build a formula Understand productivity trends Assess equity of budgeting when: - PowerPoint PPT PresentationTRANSCRIPT
PAUL LINGENFELTERSHARMILA BASU CONGER
SHEEO
DENNIS JONESNCHEMS
OCTOBER 13 , 2010
SHEEO’s Four-State Cost StudyA Webinar of Findings and Applications
Functions of Cost Analysis
Build a formula
Understand productivity trends
Assess equity of budgeting when: Base plus budgeting is used Non-formula items are significant in budgets Formulas not observed consistently
Building Blocks of Cost Studies
Assign faculty salary/benefits to instruction, research, service to determine the direct cost of instruction
Assign instructional costs to specific courses by discipline
Count student credit hours in courses, and allocate cost of faculty to those credit hours
Classify student credit hours - by level of student or by level of course
Allocate overheads (student services, academic support, O&M, institutional support)
Utility of Results
Resulting matrix – Cost per Student Credit Hour by discipline and instructional level – can be used to:
Identify higher cost/lower cost disciplines within and among institutions
Assess funding trends/needs within an institution and unusually high or low cost disciplines
Assess total institutional cost, in the context of average costs, for its unique instructional workload by discipline and level
Sample Matrix
AVERAGE Cost per Student Credit Hour (C/SCH) 2007: Florida, Illinois, and Ohio
CIP Code Discipline Name
Instructional Level
LOWER UPPER GRAD I GRAD II Total (all levels)
1 Agriculture $ 319 $ 467 $ 738 $ 874 $ 495
4 Architecture $ 294 $ 451 $ 646 $ 835 $ 490
5 Ethnic Studies $ 261 $ 404 $ 870 $ 1,183 $ 377
26 Biological Sciences $ 261 $ 379 $ 995 $ 1,001 $ 406
52 Business $ 206 $ 297 $ 553 $ 1,563 $ 327
... ... ... ... ... ... ...
... ... ... ... ... ... ...
... ... ... ... ... ... ...
TOTAL (all disciplines) $ 237 $ 338 $ 685 $ 950 $ 367
Purpose of Study
Can we do more with existing cost data? Four states with substantial cost data over multiple years Meta-analysis across states to reveal general trends
Guiding Questions How do costs/credit hours vary by instructional level/discipline? Are differences stable across states? Over time?
Increase visibility of trends, based on analysis of real data
Substantial discipline-specific variation in cells of matrix Stable patterns emerge when data combined across disciplines
Study Design
Four States: Florida, Ohio, Illinois; NY-SUNY Course Coding: CIP (FL, OH, IL) vs. HEGIS (SUNY) Years of data: 2002-2007 (FL, OH, IL) vs. 1995-2004 (SUNY)
Disciplines by State: 28 (FL, OH, IL) vs. 19 (SUNY)
Four Instructional Levels: Undergraduate: Lower Division and Upper Division Graduate: Graduate I and Graduate II Classification: Course Level (OH); Student Level (IL); Mixed (FL, SUNY)
Two Institution Types: 4-year (FL, OH, IL, SUNY) and CC (OH, IL)
Analysis: Across All Disciplines; Discipline-Specific Cost Structures and Credit Structures, comparable across states Student Credit Hours and Cost of Instruction: Percent of Total by Instructional Level Cost per Student Credit Hour: Indexed to Lower Division Undergraduate
Findings Across All Disciplines: Total Student Credit Hours (FL, OH, IL)
LOWER UPPER GRAD I GRAD II0%
10%
20%
30%
40%
50%
Distribution of Credit Hours by Instructional LevelFL 2002 FL 2007 OH 2002 OH 2007 IL 2002 IL 2007
Instructional Level
Perc
ent
of T
otal
Stu
dent
Cre
dit
Hou
rs
< 5%
12%
45%35%
Findings Across All Disciplines: Total Student Credit Hours (+SUNY)
LOWER UPPER GRAD I GRAD II0%
10%
20%
30%
40%
50%
Distribution of Credit Hours by Instructional LevelFL 2002 FL 2007 OH 2002 OH 2007 IL 2002 IL 2007 SUNY 1995 SUNY 2004
Instructional Level
Perc
ent
of T
otal
Stu
dent
Cre
dit
Hou
rs
50%
35%
12%35% 45% < 5%
Findings Across All Disciplines: Total Cost of Instruction (FL, OH, IL)
LOWER UPPER GRAD I GRAD II0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
Distribution of Total Cost by Instructional LevelFL 2002 FL 2007 OH 2002 OH 2007 IL 2002 IL 2007
Instructional Level
Perc
ent
of T
otal
Cos
t
25% 25%
45%
10%
Findings Across All Disciplines: Total Cost of Instruction (+SUNY)
LOWER UPPER GRAD I GRAD II0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
Distribution of Total Cost by Instructional LevelFL 2002 FL 2007 OH 2002 OH 2007 IL 2002 IL 2007 SUNY 1995 SUNY 2004
Instructional Level
Perc
ent
of T
otal
Cos
t
28%
38%
25% 25%45% 10%
Findings Across All Disciplines: Cost per Student Credit Hour (FL, OH, IL)
UPPER GRAD I GRAD II Total (Sum) -
0.50
1.00
1.50
2.00
2.50
3.00
3.50
4.00
4.50
5.00
Cost per Student Credit Hour by Instructional Level, Indexed to Lower Division Undergraduate
FL 2002 FL 2007 OH 2002 OH 2007 IL 2002 IL 2007
Instructional Level
Cost
per
Stu
dent
Cre
dit
Hou
r In
dex
1.5
3.0
4.0
1.5
Findings Across All Disciplines: Cost per Student Credit Hour (+SUNY)
UPPER GRAD I GRAD II Total (Sum) -
2.00
4.00
6.00
8.00
10.00
12.00
14.00
Cost per Student Credit Hour by Instructional Level, Indexed to Lower Division Undergraduate
FL 2002 FL 2007 OH 2002 OH 2007 IL 2002 IL 2007 SUNY 1995 SUNY 2004
Instructional Level
Cost
per
Stu
dent
Cre
dit
Hou
r In
dex
10.0
12.5
1.5 3.0 4.0 1.5
Summary of Findings Across All Disciplines
Consistent patterns and trends across all four states: Similar patterns, stable over time, of credit hour distribution
and cost structures across four levels of instruction Majority of both credit hours (80%) and cost (66%) represented by
Undergraduate levels of instruction• Almost half (45%) of both credit hours and cost represented by Upper Division
Undergraduate level Cost per student credit hour increases with increasing instructional levels
(LD : UD : G1 :G2) :: (1 : 1.5 : 3 : 4) TOTAL COST OF INSTRUCTION:
• Substantially greater number of credit hours in undergraduate levels OUTWEIGHS substantially greater cost per credit hour in graduate levels
Similar trends over time in credit hours and cost measures Credit hours have increased over time in all four states Cost measures, adjusted for inflation, have remained stable or decreased
Discipline-Specific Findings
Analysis of “larger” disciplines: >5% of total cost/credits
Individual disciplines generally demonstrate same cost and credit structures (by Instructional Level) as Totals for each state
Greatest Fraction of Total Credits/Total Cost (FL, OH, IL) Lower: English, Math, Physical Sciences, Social Sciences Upper: Business, Education, Social Sciences Grad I: Business, Education, Health/Medicine Grad II: Biology, Education, Engineering, Physical Sciences
Cost per Student Credit Hour (FL, OH, IL) Most expensive: Engineering, Health/Medicine, Law Least expensive: Math, English, Psychology
Cost Comparison: Community Colleges
2007 Community College cost data available for IL and OH
Comparison: Cost per Student Credit Hour Instructional cost data, Total (all disciplines) Public CCs compared to Lower Division Undergraduate, 4-years
Finding: Per-Credit-Hour costs are equivalent!COST PER STUDENT CREDIT HOUR ILLINOIS OHIO
Community Colleges $207 $277
Lower Division Undergraduate, Baccalaureate Institutions $212 $299
Summary of Findings
Cost/Credit structures, by Instructional Level: similar across disciplines consistent across states and over time
Greatest fraction of Total Costs AND Total Credits:
Upper Division Undergraduate
Community Colleges and Baccalaureate Institutions:
Equivalent in Cost per Student Credit Hour
Application: Nevada
Nevada System of Higher Education came to SHEEO and NCHEMS requesting assistance
Goal: Determine whether the allocation of funds within the state was equitable across institutions.
Available: • Credit Hours by discipline and level• Total General Fund Revenues (Tuition + Appropriations)
Missing: • Cost per Credit Hour by discipline and level
Process: Part 1: Create costing “matrix” and table of relative weights Part 2: Apply table of relative weights to Nevada data
Application: Nevada
Process, Part 1: Create costing “matrix” and table of relative weights A “matrix” of average cost per student credit hour (C/SCH) was created
• Data from CIP states (FL, IL, OH)• Sorted by discipline and instructional level• (Sum of Total Costs)/(Sum of Total Credits) = Average C/SCH
A table of relative weights was created from this “matrix” (lowest C/SCH set to 1.0)
Process, Part 2: Apply table of relative weights to Nevada data Relative weights were multiplied by Nevada’s actual Credit Hours by discipline
and level Revenues per weighted credit hour were calculated
• Using average for 3 states (FL, OH, IL)• For each state
Result was funding per weighted credit hour
Sample Table of Relative Weights
Relative Weights: Cost per Student Credit Hour (C/SCH) 2007: Florida, Illinois, and Ohio (average)
CIP Code Discipline Name
Instructional Level
LOWER UPPER GRAD I GRAD II Total (all levels)
1 Agriculture 1.83 2.68 4.24 5.02 2.85
4 Architecture 1.69 2.59 3.71 4.80 2.81
5 Ethnic Studies 1.50 2.32 5.00 6.80 2.16
26 Biological Sciences 1.50 2.18 5.72 5.75 2.33
52 Business 1.18 1.71 3.18 8.98 1.88
... ... ... ... ... ... ...
42 Psychology (lowest C/SCH) 1.00 1.52 3.73 5.08 1.69
... ... ... ... ... ... ...
TOTAL (all disciplines) 1.36 1.94 3.94 5.46 2.11
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