A Policy Affecting Distance Learning in Illinois: The Cost Study

1
A Policy Affecting Distance Learning in Illinois
The Cost Study

• by C.L. Svec, 29 April 1997
• for F. Reneau, WED 502

2
Objective

• By the end of this lesson, students will
• 1. understand the relationship and difference
  between a law and a policy

3

• 2. Understand the History and Rationale of the
  Cost Study in Illinois Institutes of
  Post-Secondary Education
  
• 3. Understand the components of the cost study

4

• 4. Understand the implications that may
  influence administrative decisions regarding
  distance education
  
• 5. Be aware of a draft proposal from
  institutional research

5
Where do policies come from?
6
Individual Philosophy

• Goodness and Meaning of Life

7
Main Philosophies in the US

• Idealism
• Pragmatism
• Realism
• ?

8
Politics

• Convince others of the value of your philosophy .
  . .
  
• and to behave in ways consis-tent with that
  philosophy. . .
  
• through use of power, rhetoric, discussion,
  compromise, cooperation.

9

• The form of Government found in the US is a
  representative Democracy
  
• All may try to influence the attitudes and
  behaviors of others through elected officials

10
Legislation

• Can influence behavior in more than one way

11
Laws may allow, control, or prohibit certain
behaviors, consistent with the presumed community
desires
12
Laws may redistribute income to support certain
outcomes consistent with presumed community
desires
13
Tax laws to collect money from the citizens of
the state to be shared with other citizens of the
state
14
Appropriations legislation, to determine the best
way to redistribute the income generated by taxes
15
?

• What are some functions of laws, or legislation?

16
Legislation

• Enabled Establishment of Public Universities
• Annually determines amount of state revenue to be
  distributed to Universities

17
Legislation

• Established a Statewide Oversight Board
• the Illinois Board of Higher Education
• or IBHE

18

• IBHE serves as a link between Universities and
  the Legislative and Executive branches of
  government

19
?

• What is the IBHE?
• What is its main purpose?

20
Policy

• Policies may be defined as . . .

21

• 1) Plans or courses of action designed to
  influence and determine decisions, actions, and
  other matters

22

• 2) Procedures considered to be expedient,
  prudent, or advantageous

23
Implementation

• action to achieve a priority or complete a goal
• generally must be completed within POLICY
  guidelines and procedures

24
The IBHE Cost Study
25

• Completed Annually
• By Every Publicly funded University in Illinois
  
  
• Every year since 1965 (Completion date of Master
  Plan for Illinois Post Secondary Education)

26

• Theoretically a planning and decision making tool
  to be used with the Resource Allocation and
  Management Plan (RAMP)

27
Purpose of the Cost Study

• See how the State's appropriated funds are used
  for the three primary missions of public
  universities

28
Objectives of the Cost Study

• 1. To help formulate the annual operations and
  grants budget fo public universities
  
• Mid-year reallocations
• Need to return "lapsed funds"

29
Objectives of the Cost Study

• 2. To assist university administrators in
  program planning and re-evaluation

30
Objectives of the Cost Study

• 3. To establish a historical reference for the
  study of changing insructional costs

31
Objectives of the Cost Study

• 4. To increase the efficiency and effectiveness
  of postsecondary education in Illinois.

32
Classifications of Costs

• Based on percentage Assignments of Faculty and
  Administrators

33
BUT

• -- Only that part of a faculty or AP assignment
  paid for by allocated funds

34

• No faculty/staff assignment paid for from cost
  recovery funds (including ILP or OCAP)

35

• No faculty/staff assignment paid for from
  externally funded organized research
  
• Faculty Activity Analysis FAA (Faculty and AP
  staff-define)

36
Three Primary Missions

• Instruction
• Research
• Public Service

37
Direct Expenditure

• Instruction
• Direct
• Indirect
• Organized Research
• Public Service
• Figure I-1 (Handout)

38
Support Costs

• If possible, allocate directly to cost center
• If not economically possible, allocate according
  to Direct Expenditures
  
• Figure I-2

39
FAA (Handouts)

• Figure II-1 Activity Categories
• Figure II-2 Sample Faculty Analysis Form
• Figure II-3 Example form for Dr. Schwann

40
Faculty Credit Hour Study
41
Simple formula

• Cost of Providing Instruction
• Divided by
• Number of credit hours generated
• Information from Institutional Research

42
Complications from this POLICY that affect
enthusiasm for distance education

• Only allocated time of faculty counted
• Only full tuition students counted

43
Conflicts between results of cost study and
educational mission
44
SIU Priority issues

• implement plans that strengthen the University's
  leadership role in the areas encompassed by the
  SIHEC and SICCM consortia
  
• (Consortia MAP)

45

• international opportunities
• appropriate market niches

46
Proposal to limit costs to students

• Current Undergraduate tuition pays about 46 of
  cost of course delivery
  
• Graduate tuition covers about 18 of cost of
  course delivery

47
Proposal to address ILP and DLP (Handout)
48
Rigid definition of DLP
49
What about Web Based Classes?
50
Summary

• Policies - guidelines to help achieve goals and
  priorities of the community
  
• Cost Study - planning tool
• Proposal for adjustment

51
What do you think?
52
How can the proposal be made better?