sheeo’s four-state cost study a webinar of findings and applications

21
PAUL LINGENFELTER SHARMILA BASU CONGER SHEEO DENNIS JONES NCHEMS OCTOBER 13, 2010 SHEEO’s Four-State Cost Study A Webinar of Findings and Applications

Upload: adonai

Post on 23-Mar-2016

43 views

Category:

Documents


1 download

DESCRIPTION

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 Presentation

TRANSCRIPT

Page 1: SHEEO’s Four-State Cost Study A Webinar of Findings and Applications

PAUL LINGENFELTERSHARMILA BASU CONGER

SHEEO

DENNIS JONESNCHEMS

OCTOBER 13 , 2010

SHEEO’s Four-State Cost StudyA Webinar of Findings and Applications

Page 2: SHEEO’s Four-State Cost Study A 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

Page 3: SHEEO’s Four-State Cost Study A Webinar of Findings and Applications

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)

Page 4: SHEEO’s Four-State Cost Study A Webinar of Findings and Applications

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

Page 5: SHEEO’s Four-State Cost Study A Webinar of Findings and Applications

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

Page 6: SHEEO’s Four-State Cost Study A Webinar of Findings and Applications

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

Page 7: SHEEO’s Four-State Cost Study A Webinar of Findings and Applications

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

Page 8: SHEEO’s Four-State Cost Study A Webinar of Findings and Applications

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%

Page 9: SHEEO’s Four-State Cost Study A Webinar of Findings and Applications

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%

Page 10: SHEEO’s Four-State Cost Study A Webinar of Findings and Applications

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%

Page 11: SHEEO’s Four-State Cost Study A Webinar of Findings and Applications

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%

Page 12: SHEEO’s Four-State Cost Study A Webinar of Findings and Applications

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

Page 13: SHEEO’s Four-State Cost Study A Webinar of Findings and Applications

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

Page 14: SHEEO’s Four-State Cost Study A Webinar of Findings and Applications

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

Page 15: SHEEO’s Four-State Cost Study A Webinar of Findings and Applications

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

Page 16: SHEEO’s Four-State Cost Study A Webinar of Findings and Applications

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

Page 17: SHEEO’s Four-State Cost Study A Webinar of Findings and Applications

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

Page 18: SHEEO’s Four-State Cost Study A Webinar of Findings and Applications

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

Page 19: SHEEO’s Four-State Cost Study A Webinar of Findings and Applications

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

Page 20: SHEEO’s Four-State Cost Study A Webinar of Findings and Applications

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

Page 21: SHEEO’s Four-State Cost Study A Webinar of Findings and Applications

PA U L L I N G E N F E LT E Rp l i n g e n f e l t e r @ s h e e o . o r g

S H A R M I L A B A S U C O N G E Rs b c o n g e r @ s h e e o . o r g

D E N N I S J O N E Sd e n n i s @ n c h e m s . o r g

Contact Information