IS THIS PROGRAM WORTH IT? HOW TO DETERMINE ROI

LORI ALEXANDERCENTRAL PIEDMONT COMMUNITY COLLEGE

Reasons for the Study

Help prioritize allocated budget resources during tough economic times

Assist with tactical enrollment growth strategies (where to add sections)

Help make the case for additional money from external sources

Help evaluate the performance of our programs

Assist with strategic program planning

Factors utilized in the Study

Actual budget dollars expended by divisions in FY09-10 (data from Budgets)

All FTE students enrolled by pre-fix and course for 2008-2009 and 2009-2010 (data from ICR Reports)

Division administrative costs were pro-rated across programs based on a % of FTE’s

A calculation resulting in credit hour generated A cost per credit hour generated was created to

compare programs over a three-year period The CPCC cost per credit hour was also

compared to the State reimbursement rate to determine ROI

Task #1: Plot Programs using FTE and Program Cost Data

High Demand/Low Cost Programs

Programs with growing enrollments and positive return on investment.

43

High Demand/High Cost Programs

Programs with growing enrollments and negative return on investment.

21Low Demand/Low Cost Programs

Programs with declining enrollments and positive return on investment.

15

Low Demand/High Cost Programs

Programs with declining enrollments and negative return on investment.

6

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Results of the StudyPortfolio of Curriculum Programs

Results Compared to Last Study

2007-2008 Study – 64 programs

2009-2010 Study – 85 programs

75% of programs grew in FTEbetween 2008-09 and 2009-10

Results Compared to Last Study

2007-2008 Study – 64 Programs 2009-2010 Study – 85 Programs

Observations about FTE Growth

Enrollment increases were largely due to: introduction of new programs addition of high-demand sections increases in class cap sizes growing number of online classes convenience of six strategically located

campuses retention efforts

68% of Programs Generated a Positive ROI in FY 2009-2010

Results Compared to Last Study

Return on Investment

Observations about Program Costs

Program costs are most impacted by faculty salaries, equipment, technology, and class size.

Programs with large class sizes and faculty hired within the last several years have the lowest cost per credit hour generated.

Programs taught mostly by PT faculty have lower costs per credit hour generated.

Programs with smaller class sizes (due to accreditation requirements and more tenured faculty) have higher costs per credit hour.

Task #2: Assign Objectives

Subsidize. Seek industry support and funding to help underwrite costs.

Revitalize. Identify and invest resources selectively.

Consolidate. Reduce costs by creating efficiencies.

Divest. Divert resources where they can be better used elsewhere.

Next StepsPrograms of Focus in 2011-12:

Declining Enrollments and High Cost

2011-2012 Objectives

Subsidize. Seek industry support and funding to help underwrite start-up costs for new healthcare programs.

Pharmacy Technology

Occupational Therapy Assistant

Ophthalmic Medical Assistant Diploma

2011-2012 Objectives Cont’d

Consolidate. Reduce costs by creating efficiencies.

Business Administration Umbrella Degree

Math Consolidation

Mechatronics Consortium

Super CIP