Kentucky Community and Technical College System: Marketing, Lobbying, and Administration Expenses

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1 LEGISLATIVE RESEARCH COMMISSION PROGRAM REVIEW AND INVESTIGATIONS COMMITTEE Kentucky Community and Technical College System: Marketing, Lobbying, and Administration Expenses Research Report No. 384 Prepared by Cindy Upton, Lora Littleton, and Jean Ann Myatt

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3 Kentucky Community and Technical College System: Marketing, Lobbying, and Administration Expenses Committee Sen. Jimmy Higdon, Co-chair Rep. Fitz Steele, Co-chair Sen. Perry B. Clark Sen. Vernie McGaha Sen. Joey Pendleton Sen. John Schickel Sen. Dan Seum Sen. Brandon Smith Sen. Katie Kratz Stine Rep. Dwight D. Butler Rep. Leslie Combs Rep. Terry Mills Rep. David Osborne Rep. Ruth Ann Palumbo Rep. Rick Rand Rep. Arnold Simpson Greg Hager, PhD Committee Staff Administrator Project Staff Cindy Upton Lora Littleton Jean Ann Myatt Research Report No. 384 Legislative Research Commission Frankfort, Kentucky lrc.ky.gov Adopted July 14, 2011 Paid for with state funds. Available in alternative format by request.

4 Reports Adopted by the Program Review and Investigations Committee, 2001 to 2011 Kentucky Community and Technical College System: Marketing, Lobbying, and Administration Expenses, Report 384, 2011 Air Service at Kentucky s Commercial Airports, 2011 Transparency and Accountability of Quasi-governmental Entities, 2011 The Impact of Industrial Revenue Bonds on Property Taxes and School Funding, 2011 Workforce Development Options Targeted to Older Kentuckians Are Limited, Report 375, 2010 School Health Services for Students With Chronic Health Conditions, Report 374, 2010 Kentucky High School Athletic Association, Report 372, 2009 Cost of Incarcerating Adult Felons, Report 373, 2009 Highly Skilled Educator Program Follow-up Report, 2009 Education Professional Standards Board, Report 366, 2009 Housing Foreclosures in Kentucky, Report 365, 2009 Costs of Providing Services to Unauthorized Aliens Can Be Estimated for Some Programs but Overall Costs and Benefits Are Unknown, Report 359, 2009 A Review of the Kentucky Agency for Substance Abuse Policy and the Office of Drug Control Policy, Report 367, 2008 Reentry Programs for Felons Should Be Improved and Outcome Measures Should Be Developed, Report 357, 2008 The Costs of College and High School Textbooks in Kentucky, Report 356, 2008 Investment Rates of Return, Governance, and Policies of the Kentucky Retirement Systems and the Kentucky Teachers Retirement System, Report 352, 2008 Medicaid Prescription Drug Benefit Fraud, Abuse, and Cost Management, Report 351, 2007 Kentucky Housing Corporation, 2007 Siting of Electric Transmission Lines, Report 348, 2007 School Insurance, Report 347, 2007 Drug Courts, Report 346, 2007 Pollution Cap and Trade Programs in Kentucky, Report 343, 2007 Kentucky s Foster Care Program Is Improving, but Challenges Remain, Report 342, 2006 Planning for School Facilities Can Be Improved To Better Serve the Needs of All Students, Report 341, 2006 Highly Skilled Educator Program, Report 339, 2006 Kentucky s Community Mental Health System Is Expanding and Would Benefit From Better Planning and Reporting, Report 340, 2006 School Size and Student Outcomes in Kentucky's Public Schools, Report 334, 2006 Information Systems Can Help Prevent, but Not Eliminate, Health Care Fraud and Abuse, Report 333, 2006 Implications of the U.S. Supreme Court's Kelo Decision for the Use of Eminent Domain in Kentucky, Report 330, 2005 Planning for Water Projects in Kentucky: Implementation of Senate Bill 409, Report 329, 2005 Kentucky Can Improve the Coordination of Protective Services for Elderly and Other Vulnerable Adults, Report 327, 2005 Improved Coordination and Information Could Reduce the Backlog of Unserved Warrants, Report 326, Offshore Outsourcing of Kentucky State Government Services: Direct Contracting Is Limited but the Amount of Subcontracting Is Unknown, Report 325, 2005 Appropriate Management and Technology Can Reduce Costs and Risks of Computer Use by State Employees, Report 324, 2004 Uncollected Revenues and Improper Payments Cost Kentucky Millions of Dollars a Year, Report 322, 2004 Improving Fiscal Accountability and Effectiveness of Services in the Kentucky Transitional Assistance Program, Report 321, 2004 Human Service Transportation Delivery, Report 319, 2004 The Commonwealth Accountability Testing System, Report 312, 2003 Postsecondary Education in Kentucky: Systemwide Improvement but Accountability Is Insufficient, Report 311, 2003 The SEEK Formula for Funding Kentucky's School Districts: An Evaluation of Data, Procedures, and Budgeting, Report 310, 2002 East and West Kentucky Corporations, Report 308, 2002 An Analysis of Kentucky s Prevailing Wage Laws and Procedures, Report 304, 2001 Executive Branch Contracting for Services: Inconsistent Procedures Limit Accountability and Efficiency, Report 303, 2001 Performance-based Budgeting: Concepts and Examples, Report 302, 2001 Impact Plus, Report 300, 2001

5 Kentucky Community and Technical College System: Marketing, Lobbying, and Administration Expenses Abstract The Kentucky Community and Technical College System (KCTCS) has a statewide governing system and president, which is rare. There are only three comparable systems in other states. From fiscal year 2006 to fiscal year 2010, KCTCS spent more than $12 million on marketing using state general funds, tuition revenue, and private donations. KCTCS used state general funds to pay $636,000 to a professional lobbying firm over this period. KCTCS s cost of administration is high in relation to Kentucky s other public postsecondary education institutions and two of the three comparable systems in other states. The cost of administration over the 5 years was $352.5 million, or 13.7 percent of operating expenses, paid from state general funds and tuition revenue. Marketing and lobbying costs are less than 1 percent of operating expenses. The report has two recommendations directed to the General Assembly.

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7 Legislative Research Commission Foreword Foreword Program Review staff would like to thank Kentucky Community and Technical College System officials for providing information used in this report. Staff would like to thank the staff of the Legislative Ethics Commission, the Executive Branch Ethics Commission, and the Council on Postsecondary Education for their assistance. Within the Legislative Research Commission, Program Review staff would like to thank staff of the Interim Joint Committee on Education, the Budget Review Committee, and the LRC Library. Legislative Research Commission Frankfort, Kentucky July 14, 2011 Robert Sherman Director i

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9 Legislative Research Commission Contents Contents Summary... v Kentucky Community and Technical College System: Marketing, Lobbying, and Administration Expenses... 1 Conclusions... 1 Overview of KCTCS... 2 Indicators of Institutional Size and Growth... 3 Marketing... 6 Systemwide Marketing Costs... 6 Colleges Marketing Costs... 7 Marketing Activities... 9 Evaluation of Marketing Activities Lobbying Professional Lobbyists Recommendation Public Advocacy Administration Institutional Support Executive, Administrative, and Managerial Costs Public Institutions Presidential Compensation Recommendation Other KCTCS System Office Executive, Administrative, and Managerial Staff Compensation Compensation of College Presidents and Administrative and Managerial Staff Other Administrative Costs Retirement Plans Health Care Plans Works Cited Appendix A How This Study Was Conducted Appendix B Additional Administrative Cost Information iii

10 Contents Legislative Research Commission List of Tables 1 Undergraduate Headcount Enrollment and Percentage Change for Kentucky Public Postsecondary Institutions and Three Comparable State Systems, Academic Year 2006 to Academic Year Undergraduate Headcount Enrollment and Percentage Change Per KCTCS College, Academic Year 2006 to Academic Year Colleges and Campuses in Community and Technical College Systems as of May 3, KCTCS Systemwide Marketing Expense Summary, Fiscal Year 2006 to Fiscal Year KCTCS Colleges Marketing Expenses, Fiscal Year 2006 to Fiscal Year KCTCS Advertising Agency Expenses, Fiscal Year 2006 to Fiscal Year KCTCS External Marketing Activities, Fiscal Year 2006 to Fiscal Year KCTCS Internal Activities Related to Marketing, Fiscal Year 2006 to Fiscal Year Lobbying Expenses of State-supported Institutions, Calendar Year 2006 to Calendar Year Federal Entities Lobbied by KCTCS, Calendar Year 2006 to Calendar Year Federal Awards Attributed by KCTCS to Lobbying Firm Efforts, Fiscal Year 2006 to Fiscal Year Public Advocacy Expenses, July 1, 2009, to February 26, Institutional Support Expenses of Public Institutions, Fiscal Year 2006 to Fiscal Year Institutional Support Expenses Within KCTCS, Fiscal Year 2006 to Fiscal Year Institutional Support Expenses, Fiscal Year 2006 to Fiscal Year Kentucky Public Postsecondary Institutions Presidential Base Salaries, Fiscal Year 2006 to Fiscal Year KCTCS President s Total Compensation, Calendar Year 2005 to Calendar Year Kentucky Public Institutions Total Potential Presidential Compensation, Fiscal Year 2006 to Fiscal Year KCTCS Administrative Staff Positions and Compensation, Fiscal Year Other KCTCS System Office Expenses, Fiscal Year 2006 to Fiscal Year Salaries of KCTCS College Presidents, Fiscal Year 2006 to Fiscal Year College Boards of Directors Costs, Fiscal Year 2006 to Fiscal Year iv

11 Legislative Research Commission Summary Summary A postsecondary education institution such as the Kentucky Community and Technical College System (KCTCS) is rare. Program Review staff were able to identify only three other comparable systems with a statewide governing board and president: the Colorado Community College System, the Louisiana Community and Technical College System, and Ivy Tech Community College of Indiana. Direct comparisons of these institutions marketing, lobbying, and administration expenses are impossible, as these expenses are reported in a single line item in financial reports. KCTCS has the highest enrollment of undergraduates in Kentucky by far. Its more than 106,000 students are more than one-half the state total. Enrollment at KCTCS increased 23.3 percent from academic year 2006 to academic year This was more than twice the rate of the fastest-growing 4-year universities. In comparison to other states systems, KCTCS has more students, but the other systems enrollments have been increasing at higher rates. Over the 5 years, enrollment in the Indiana system increased 69.2 percent, enrollment in the Louisiana system increased 56.9 percent, and enrollment in the Colorado system increased 39.3 percent. KCTCS s broad mandate suggests that it should market itself to increase awareness of the system and the value of its programs. Systemwide marketing cost on behalf of the colleges has more than doubled in the last 5 years; overall marketing by the KCTCS colleges has remained stable. KCTCS uses state general funds and tuition revenue to pay for marketing expenses. KCTCS s marketing expense from fiscal year (FY) 2006 to FY 2010 was $12.2 million, which was about one-half of 1 percent of operating expenses. Of that amount, KCTCS spent more than $2.2 million in marketing at University of Kentucky and University of Louisville sporting events. KCTCS states that it evaluates the effectiveness of its marketing activities. The evaluation includes recording results from advertising campaigns for a given year, as well as conducting more long-term analysis through the use of market assessments. However, it is impossible to know whether students would enroll without the various marketing activities of KCTCS. KCTCS contracts with a government services firm for lobbying. State general funds are used to pay for lobbying. KCTCS s lobbying expense from FY 2006 to FY 2010 was $636,000, which was less than three-hundredths of 1 percent of operating expenses. Recommendation 1 If it is the intent of the General Assembly that state funds not be used to pay for lobbying, the General Assembly may wish to prohibit the practice. For contracted lobbying over the 5-year period, KCTCS spent about the same amount as the University of Louisville and almost as much as the University of Kentucky. KCTCS reported that its lobbyist helped secure several federal funding awards. It is impossible to know whether the system would have received the federal funding without the lobbying firm s assistance. v

12 Summary Legislative Research Commission KCTCS characterizes lobbying done by staff and other system stakeholders as public advocacy. This method of influencing legislative outcomes is not subject to state and federal reporting requirements because no paid, registered lobbyist is used. KCTCS s public advocacy activities from July 1, 2009, through February 26, 2010, cost more than $1 million. The activities were funded predominantly by state funds with a small amount of private donations. The KCTCS system office adds a statutorily mandated layer of administration to ensure the coordination and consistency of programs and activities among its colleges, as well as collaboration with the 4-year universities, secondary schools, and employers. KCTCS s administrative support costs are high in relation to Kentucky s other public postsecondary institutions and two of the three comparable systems in other states. The total amount spent on administration was $352.5 million from FY 2006 to FY 2010, or 13.7 percent of operating expenses. The cost was paid with state general funds and tuition and fee revenue. Colleges and universities report costs of administration in a financial statement category called institutional support. KCTCS spent more on institutional support in the 5-year period than any other state-supported institution in Kentucky and more than two of the three other states systems. However, KCTCS had the smallest percentage increase in institutional support expense of all Kentucky public institutions and other states community college systems. The major reason is that administrative expenses at the system office decreased almost 45 percent in the 5 years. The administrative burden of institutions (including marketing and lobbying costs) can be measured by calculating institutional support as a percentage of all operating expenses. KCTCS had the second-highest proportion of institutional support among Kentucky s public institutions at 14.3 percent. A significant component of institutional support is executive, administrative, and managerial staff compensation. In terms of percentage change, the base salary of the president of KCTCS increased about a third as much as that of the president of Western Kentucky University. In terms of dollar amounts, the president of KCTCS made approximately the same base salary as the president of the University of Kentucky. The situation changes when other compensation is added to base salary. A president s total compensation package can include a performance bonus, deferred compensation, housing, additional long-term disability and life insurance, and other benefits not available to rank-and-file employees. For example, in calendar year 2010, the KCTCS president had a base salary of $304,890. When other compensation paid to or on behalf of the president is added, the president s total compensation was $569,875 in that year. To provide a context for considering the compensation of the KCTCS president, Program Review staff obtained information from the Council on Postsecondary Education on each public institution s presidential compensation for the 2006 to 2010 period. The information is selfreported by the institutions on forms provided by the council. In addition, the total compensation of a president cannot be determined consistently from the information the institutions report to the council. Different instructions from the council over the years, different ways the institutions vi

13 Legislative Research Commission Summary report information to the council, and reporting before fiscal year-end make it possible to calculate a president s potential compensation but not the amount the president actually receives in a fiscal year. The council does not report the actual amount paid to and on behalf of the presidents. Recommendation 2 If more detailed cost information is needed from the public postsecondary education institutions, the General Assembly may wish to consider requiring the Council on Postsecondary Education to collect and report it. The potential compensation of the president of KCTCS more than doubled in 5 years and was the highest among Kentucky public institutions in FY The potential compensation of the presidents of Northern Kentucky University and Western Kentucky University increased by about half. The compensation of the University of Louisville s president declined. Excluding the system president, total compensation for other executive, administrative, and managerial staff at the KCTCS system office was more than $25.5 million in the period from FY 2006 to FY 2010, increasing 15.8 percent in that time. Employees in five positions at the system office work under contract and are provided benefits that exceed those of regular employees. Other system-level costs are information systems and legal services. The cost of legal services increased more than 600 percent in the 5 years, from about $126,000 in FY 2006 to more than $940,000 in FY In this period, the cost of information systems doubled, from about $1.5 million to about $3 million. Each college in the system has a president and administrative and managerial staff. The college presidents work under contract; the other positions are KCTCS staff. Overall, the compensation of KCTCS college presidents and other administrative and managerial staff increased over the 5 years. KCTCS pays the employer and employee portions of the president s retirement. KCTCS employees are members of one of the state s retirement systems or a defined contribution plan sponsored by KCTCS. Other contracted positions and KCTCS employees pay the employee portion of retirement, regardless of the system they participate in. The KCTCS president, the college presidents, and other contracted positions also are provided an employer-paid supplemental retirement plan. KCTCS employees who were part of the University of Kentucky Community College System and have chosen to remain in the university s personnel system are members of its health plan. All other KCTCS employees and all contracted positions participate in the Kentucky Employees Health Plan. vii

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15 Legislative Research Commission KCTCS Marketing, Lobbying, and Administration Kentucky Community and Technical College System: Marketing, Lobbying, and Administration Expenses A postsecondary education institution such as the Kentucky Community and Technical College System (KCTCS), with a statewide governing board and president, is rare. Program Review staff found only three comparable systems, in Colorado, Louisiana, and Indiana. Comparisons among institutions in the report are limited because of the small number of similar institutions and the nature of expense information reported in financial statements. A postsecondary education institution such as the Kentucky Community and Technical College System (KCTCS) is rare. Program Review staff found only three comparable systems with a statewide governing board and president: the Colorado Community College System, the Louisiana Community and Technical College System, and Ivy Tech Community College of Indiana. Much of the expense information in this report was constructed from details provided by KCTCS from its accounting system. Direct comparisons from financial statements of marketing, lobbying, and administration costs among postsecondary education institutions are impossible because the costs are not reported separately. Marketing, lobbying, and administrative costs are part of the line item institutional support. Because of the small number of similar institutions and the nature of expense information reported in financial statements, comparisons in the report are limited. Conclusions The report has three major conclusions. 1) KCTCS s broad mandate suggests that it should market itself to increase awareness of the system and the value of its programs. Systemwide marketing costs on behalf of the colleges have more than doubled in the past 5 fiscal years; overall marketing by the KCTCS colleges has remained stable. KCTCS uses state general funds, tuition revenue, and private donations to pay for marketing expenses. KCTCS s marketing expense is less than one-half of 1 percent of operating expenses. 2) KCTCS attempts to influence decision makers by contracting with a lobbyist and conducting public advocacy using staff and other stakeholders. The results of lobbying and public advocacy are impossible to measure. State general funds are used to pay lobbying costs. KCTCS s lobbying expense is approximately three-hundredths of 1 percent of operating expenses. State general funds and private donations are used to pay public advocacy costs. Public advocacy is a component of KCTCS s marketing expense. 1

16 KCTCS Marketing, Lobbying, and Administration Legislative Research Commission 3) The KCTCS system office adds a statutorily mandated layer of administration to ensure the coordination and consistency of programs and activities among its colleges, as well as collaboration with the 4-year universities, secondary schools, and employers. KCTCS s administrative support costs are high in relation to Kentucky s other public postsecondary institutions and two of the three comparable systems in other states. Administration expense is 13.7 percent of KCTCS s operating expenses. The cost is paid with state general funds and tuition and fee revenue. Overview of KCTCS KCTCS was created in 1997 to combine the state s individual community and technical colleges into one statewide system. KCTCS is a public postsecondary education institution created in House Bill 1 of the 1997 extraordinary session of the General Assembly and codified in KRS Chapter 164. The legislation combined the state s individual community and technical colleges into one statewide system with a board of regents and a system president. KRS (2) requires KCTCS to be responsive to the needs of students and employers in all regions of the Commonwealth with accessible education and training to support the lifelong learning needs of Kentucky citizens in order to increase basic academic and literacy skills through adult basic education and remedial education; increase technical skills and professional expertise of Kentucky workers through associate and technical degrees and diploma and certificate programs; increase students access to complete associate degrees and ease transfer to 4-year institutions; increase access of secondary students to postsecondary programs through early admission, advanced placement, or dual enrollment; facilitate credit transfers between certificate, diploma, technical, and associate degree programs; develop educated citizens to support the expansion of existing business and industry and the recruitment of new business and industry; enhance the flexibility and adaptability of Kentucky workers through continuing education and customized training for business and industry; promote Kentucky communities cultural and economic wellbeing; and improve the quality of life for Kentucky s citizens. 2

17 Legislative Research Commission KCTCS is governed by a 14-member board of regents that appoints a system president. KCTCS has 16 colleges with 68 campuses. Each college has a president and board of directors. KCTCS Marketing, Lobbying, and Administration KCTCS is governed by a 14-member board of regents. KRS specifies that eight members are appointed by the governor, two are teaching faculty, two are nonteaching personnel, and two are students. The board appoints a system president. KCTCS has 16 colleges with 68 campuses. Each college has a president and board of directors as required by KRS Each college operates independently, although the system office provides leadership, service, and support for college operations. The system office handles most administrative duties, such as accounting and payroll. KCTCS states that centralization of services at the system office reduces costs by eliminating duplicate positions at the individual college level (Commonwealth. Kentucky. Metamorphosis 10). Program Review staff asked KCTCS to quantify the savings obtained by centralization. In response, KCTCS provided a list of positions at the system office and total salaries of $5,018,600 for them. KCTCS states that funding the positions once at the system level eliminates the need to fund them at each college at a cost of about $80 million (Burcham. Response to LRC ; Burcham. LRC Documents ). The system office provides space and administrative support for the Kentucky Fire Commission, the Kentucky Board of Emergency Medical Services, and the Kentucky Approving Agency for Veterans Education. Indicators of Institutional Size and Growth Institutional size and growth over time provide a context in which to consider the expense information provided in this report. Student headcount is a way to consider the size of an institution. Program Review staff used undergraduate headcount for Kentucky s public 4-year universities to more closely resemble the student body at community and technical colleges. 3

18 KCTCS Marketing, Lobbying, and Administration Legislative Research Commission Table 1 shows total undergraduate headcount enrollment and the percentage change for KCTCS, Kentucky 4-year public universities, and the Colorado, Louisiana, and Indiana community college systems for 5 academic years. Table 1 Undergraduate Headcount Enrollment and Percentage Change for Kentucky Public Postsecondary Institutions and Three Comparable State Systems Academic Year 2006 to Academic Year 2010 Kentucky Institution % Change KCTCS 86,475 92,828 89, , , % Eastern Kentucky University 13,623 13,659 13,839 13,991 14, Kentucky State University 2,341 2,510 2,497 2,638 2, Morehead State University 7,515 7,625 7,487 7,550 7, Murray State University 8,607 8,361 8,179 8,249 8, Northern Kentucky University 12,668 12,725 13,030 13,206 13, University of Kentucky 19,328 18,830 18,988 19,217 19, University of Louisville 15,103 15,125 15,495 15,619 15, Western Kentucky University 16,067 16,508 16,966 17,645 17, Community College System Colorado 67,561 68,809 71,825 85,544 94, Louisiana 46,775 52,405 59,430 70,142 73, Indiana 42,922 45,786 49,693 54,708 72, Sources: Commonwealth. Council. Total ; State of Colorado. Dept.; State of Louisiana. Board; Dudich. KCTCS has the highest enrollment of undergraduates in Kentucky. Its 106,000 students are more than half the state total. KCTCS also had the highest percentage increase in enrollment in the past 5 years, more than twice the rate of the fastest growing 4-year universities. However, enrollments have increased at higher rates in the three comparable state community college systems than at KCTCS. KCTCS has the highest enrollment of undergraduates in Kentucky by far. Its more than 106,000 students are more than one-half the state total. KCTCS also had the highest percentage increase in enrollment over the past 5 years at 23.3 percent. This was more than twice the rate of the fastest growing 4-year universities. KCTCS has more students than the other states systems, but the other systems enrollments have been increasing at higher rates. Over the past 5 years, enrollment in the Ivy Tech Community College of Indiana increased 69.2 percent, enrollment in the Louisiana Community and Technical College System increased 56.9 percent, and enrollment in the Colorado Community College System increased 39.3 percent. National information on headcount enrollment was available only through academic year 2008 (US. Department). Program Review staff calculated the percentage increase in undergraduate student headcount at 2-year and 4-year public institutions between 2006 and In that period, national enrollment increased 6.6 percent at 2-year institutions such as KCTCS and 5.8 percent at 4-year institutions. The increase at KCTCS was 4 percent. 4

19 Legislative Research Commission Since 2006, increases in enrollment at KCTCS colleges ranged from 3.7 percent at Jefferson to 58.3 percent at Elizabethtown. KCTCS Marketing, Lobbying, and Administration Within KCTCS s colleges, there was a great deal of variation in enrollment since Table 2 shows the headcount enrollment and percentage change for each KCTCS college from academic year 2006 to academic year The smallest increases were at Jefferson (3.7 percent), Henderson (5.4 percent), and West Kentucky (8.5 percent). Enrollment increased by more than 45 percent at each of four colleges: Elizabethtown, Gateway, Somerset, and Bowling Green. Table 2 Undergraduate Headcount Enrollment and Percentage Change Per KCTCS College Academic Year 2006 to Academic Year 2010 College % Change Ashland 4,140 4,758 4,078 4,493 4, % Big Sandy 4,637 4,866 4,711 5,048 5, Bluegrass 11,527 11,617 12,146 13,378 14, Bowling Green 3,568 5,025 3,971 4,899 5, Elizabethtown 4,983 5,515 5,762 6,915 7, Gateway 3,189 3,130 3,477 4,206 4, Hazard 3,970 4,458 4,071 4,714 4, Henderson 2,113 2,053 1,948 2,206 2, Hopkinsville 3,353 3,428 3,235 3,755 3, Jefferson 14,710 15,478 14,412 14,992 15, Madisonville 3,997 4,364 4,421 4,597 4, Maysville 3,358 3,635 3,479 4,128 4, Owensboro 5,188 5,439 5,585 6,328 7, Somerset 6,319 7,113 7,175 8,201 9, Southeast Kentucky 4,580 4,849 4,864 4,959 5, West Kentucky 6,843 7,100 6,607 7,529 7, Total 86,475 92,828 89, , , % Source: Commonwealth. Council. Office. 5

20 KCTCS Marketing, Lobbying, and Administration Legislative Research Commission Another indicator of the size of an institution is its number of colleges and campuses. Table 3 shows the number of colleges and campuses at KCTCS and the Colorado, Louisiana, and Indiana systems. KCTCS and the Louisiana system have 16 colleges. Each college has a president and other administrative staff. Table 3 Colleges and Campuses in Community and Technical College Systems as of May 3, 2011 State System Colleges Campuses KCTCS Colorado Community College System Louisiana Community and Technical College System Ivy Tech Community College of Indiana Sources: Compiled by staff from Commonwealth. Council. Office 4-5; State of Colorado. Colorado; and the websites of the Indiana and Louisiana community college systems. KCTCS reported approximately $365 million in institutional support expenses over a 5-year period for 68 campuses, an average of less than $5.5 million per campus. The Louisiana system reported approximately $322 million for 40 campuses, an average of $8 million per campus. Marketing KCTCS views marketing primarily as recruiting and focuses its marketing activities on its statutory requirements (Burcham et al. Personal. Feb. 14). Marketing costs are incurred by the system office and the individual colleges. KCTCS s marketing expenses from FY 2006 to FY 2010 were about $12.2 million, or less than one-half of 1 percent of operating expenses. Marketing expenses of the KCTCS system office and the colleges totaled $12,185,988 from FY 2006 to FY This amount represents 0.48 percent (approximately one-half of 1 percent) of adjusted operating expenses. Adjusted operating expenses are described later in the section on administration. Systemwide Marketing Costs The system office used state general funds for its marketing activities on behalf of the colleges in FY 2006 to FY The individual colleges used state general funds, tuition revenue, and private donations for marketing activities during this period (Burcham responses and Remaining ). 6