Cost of a Degree to the Student, the State & the Institution. A report by the State University System of Florida Cost-per-Degree Workgroup

Transcription

1 Cost of a Degree to the Student, the State & the Institution A report by the State University System of Florida Cost-per-Degree Workgroup June 3, 2013

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3 Acknowledgements The Cost-per-Degree Work Group was created by Board of Governors Chancellor Frank Brogan, with each university nominating one individual to represent its institution. Membership includes: FAMU Kwadwo Owusu- Asst. VP, Institutional Research & Reporting Aduemiri, Ph.D. FAU Gitanjali Kaul, VP Strategic Planning & I.T. Ed.D. FGCU Paul Snyder, Ph.D. Associate Provost and Associate VP, Planning & Institutional Performance FIU Jeff Gonzalez Associate VP, Office of Planning & Institutional Research FPU Ava Parker Chief Operating Officer FSU Ralph Alvarez Associate VP for Budget, Planning & Financial Services NCF John Martin V.P. for Finance & Admin. UCF Lynn Gonzalez Associate VP, Budget & Personnel Admin. UF Matt Fajack V.P. & Chief Financial Officers UNF Rick Powell, Ph.D. Director, Institutional Research USF Ralph Wilcox, Provost & Executive V.P. Ph.D. UWF Shelly Blake Executive Assistant & Director, Academic Budgets Board Jan Ignash, Ph.D. Chief Academic Officer Board Tim Jones Chief Financial Officer The participation by all of the work group members contributed significantly to this report. The level of consensus achieved on the findings is a testament to the outstanding work done by these professionals. The work group received excellent support from other university and Board staff members and would like to thank the following individuals for their contributions: Paige Borden, Ph.D., UCF Assistant VP for Institutional Knowledge Management Kristie Harris, Board of Governors Budget Director Jason Jones, Board of Governors Director of Institutional Research Jennifer Nabors, Ph.D., Board of Governors Financial Data Analyst Special thanks to HCM Strategists through the Lumina Strategy Labs, Andrew Morse, Ph.D., Board of Governors Educational Policy Analyst and Kim Wilmath, Board of Governors Communications Director, for reviewing the draft report. 2 Page

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5 Table of Contents Acknowledgements 2 List of Tables and Figures 4 Executive Summary 5 Background 7 Chancellor s Charge 8 Models/Data Considered 9 Chosen Model 10 Caveats 14 Conclusion 16 Appendix A: The Chancellor s charge 18 Appendix B: Definitions 19 Appendix C: Work papers 21 3 Page

6 List of Tables Table 1: Education and related spending per completion (2009) 8 Table 2: Student cost-per-degree summary 12 Table 3: State cost-per-degree summary 13 Table 4: Institution cost-per-degree summary 14 Table 5: Student cost per degree 21 Table 6: State cost per degree 22 Table 7: State cost per degree with capital funding added 23 Table 8: Institution cost per degree 24 4 Page

7 Executive Summary The need for a cost-per-degree methodology for the State University System of Florida was made evident through conversations about a proposed performancefunding model. Without an established cost-per-degree methodology to follow, Chancellor Frank Brogan initiated a charge to Board of Governors staff to lead a Work Group of representatives of the system s 12 institutions and create a methodology to estimate cost-per-degree for undergraduate students, the state and the institution. The Chancellor s charge was not to determine a cost-perdegree by program or degree type, but to provide an average cost-per-degree at the institution and system level. The Work Group reviewed multiple methodologies, including a review of national undergraduate cost-per-degree analyses. The Work Group concluded that there is not a generally accepted methodology to determine undergraduate cost-per-degree and that any methodology chosen would have various nuances and assumptions, and would be subject to interpretive differences. The methodology designed is easy to understand from the perspective of parents, board members, public officials or other stakeholders. The methodology, using data, calculated the undergraduate cost-per-degree for a student, the state and the institution, but the Work Group did not place a value judgment on how the end result would be used to allocate performance funding. Cost of a degree to a student No national model existed to calculate undergraduate costper-degree. In determining the undergraduate cost of a degree to a student, several factors were considered; tuition, fees, books, student financial aid and the number of credit hours needed to obtain a degree. The analysis estimates the amount of tuition, fees and books a student would pay for 120 credit hours, the standard number of credit hours needed to obtain an undergraduate degree. To project the student cost, the amount the student would pay is netted with the average student financial aid provided by the university. The amount of student financial aid provided to an average student varies across the system. Institutions do not make distribution decisions about federal or state financial aid programs because they are governed by federal or state statutory authority. But they do, however, decide how institutional gift aid is provided to students based on institution policies and availability of funds. The system s average cost-per-degree (for 120 credit hours) for a student is $8,205 (tuition and fees less student financial aid). 5 Page

8 Cost of a degree to the state To determine the state cost-per-degree, the Work Group took the state operating appropriation total for each institution weighed by the percentage of undergraduate expenditures, added the state student financial aid disbursement, and then allocated by enrollment an amount per full-time equivalent student (FTE). The amount per-fte was then converted to a per-credit-hour amount and multiplied by a standard 120 credit hours to determine the cost-per-degree to the state. The allocation of fixed capital outlay costs presented an additional challenge to the Work Group because capital construction benefits all students - undergraduate and graduate, faculty and staff. An amount per-student was derived from the average annual capital appropriation provided to each institution over the last 30 years and allocated based on undergraduate FTE student enrollments. The state s average operating cost-per-degree for the system (for 120 credit hours) is $19,654, while the average including an allocation of capital costs, is $22,926. Cost of a degree to the institution An institution s cost-per-degree estimate is the same as the state s operating costper-degree estimate with the inclusion of budgeted tuition. The institution s average cost-per-degree (for 120 credit hours) for the system is $26,807. Conclusion The Work Group believes this exercise was helpful in starting important conversations about higher education cost. It is the Work Group s hope that these conversations will continue within the higher education community and among stakeholders in Florida. However, given the complexity of the issue and the number of caveats that had to be considered in creating this high-level cost-perdegree methodology, the Work Group is concerned about including cost-perdegree as a metric in a performance funding model, particularly since the Work Group did not have information on goal(s) to be aligned with this metric. Performance funding must be based upon metrics that are reliable and accurate, but just as importantly, there must be clarity about the goals the model is attempting to address so that the metric can be properly evaluated. 6 Page

9 Background As stewards of state funding, the institutions of the State University System of Florida (SUS) strive for efficiency while offering students an affordable, highquality education. A cost-per-degree evaluation would help demonstrate this efficiency, affordability and value. Though cost-per-degree is often a topic of conversation and debate in higher education, there is not an established metric for state systems or individual institutions. There are few guideposts available nationally that help systems and institutions create a cost-per-degree metric that fits the important questions raised and the uniqueness of the institutions involved. In 2005 the Board of Governors engaged MGT of America, Inc. to explore the development of a cost-per-degree model by degree level, program and institution. MGT determined multiple ways of calculating the cost-per-degree; catalog cost estimates, a student s transcript, and a full cost method. The full cost method was chosen and involved allocating direct and indirect instructional costs to the different degree outcomes in the system. However, shortly after MGT presented their report, the economy turned downward and focuses shifted elsewhere 1. Recently, cost-per-degree has surfaced again as a topic of political interest in Florida. In November of 2012 Florida Governor Rick Scott announced a challenge to the Florida College System (FCS) 2 to create bachelor degree programs that would cost the student no more than $10,000 (excluding expenses such as textbooks). All of the bachelor-degree granting institutions within the FCS agreed in January of 2013 to accept the Governor s challenge. Though not included in the $10,000 Degree Challenge, SUS institutions strive to provide a good return on investment to students and the state for their respective tuition and appropriation dollars. According to the College Board, Florida s public universities charge the 41 st lowest tuition and fees in the country in In addition, current interest in creating a metrics-based performance-funding model for SUS institutions also has created a need to develop a methodology for measuring cost-per-degree. Though a comprehensive performance-funding model is still being developed, cost-per-degree is one of the proposed metrics. Others include retention rates, graduation rates, and completion rates for degree 1 The MGT paper and materials related to the 2005 study are available at 2 The FCS consists of 28 institutions, including community colleges and colleges offering limited baccalaureate degrees. Additional information about The Florida College System can be found at 7 Page

10 programs in areas of strategic emphasis. However, in order to utilize cost-perdegree in the performance funding model there must first be a methodology in place that enables the calculation of cost-per-degree for each of the SUS institutions. A study by the Delta Cost Project on Postsecondary Education Costs, Productivity, and Accountability (from here on referred to as Delta Cost Project ) analyzed educational spending per student completion data relying on 2009 data from the Integrated Postsecondary Education Data System. Compared to other states, Florida s public research and public master s institutions are approximately 40 percent more efficient in terms of spending per degree completion. There are some drawbacks in using the Delta Cost Project data. While this data offers a national perspective, it does not separate degree levels. Additionally, the data includes federally sponsored programs and other expenditure sources 3 not within the scope of the current cost-to-degree questions due to the focus on undergraduates. Table 1: Education and related spending per completion (2009) 4 Public Research 5 Public Master s 6 Florida $44,704 $39,233 United States $64,179 $54,167 Source: Delta Cost Project ( Chancellor s Charge Florida s public research & masters institutions are 40% more efficient than the national average. On January 15, 2013, State University System Chancellor Frank Brogan issued a memorandum 7 addressing the need to study cost-per-degree, a proposed component of the performance funding model currently under development. The Chancellor charged Board of Governors staff to lead a Work Group consisting of representatives from each SUS institution with the goal of 3 Other expenditure sources include federal, state, and local contracts and grants, endowments, gifts through the foundation, concession funds, auxiliary revenues and fee revenues. 4 New College of Florida, the only institution in the SUS considered a Public Bachelor s, is not included in this table 5 University of Central Florida, Florida A&M University, Florida Atlantic University, Florida International University, Florida State University, University of Florida, University of South Florida, and The University of West Florida 6 University of North Florida and Florida Gulf Coast University 7 The full text of the Chancellor s memorandum is in Appendix A. 8 Page

11 developing a systematic method of calculating cost-per-degree annually for each institution taking into account state appropriations, tuition and financial aid. Specific questions posed to the Work Group include the following: 1. How much does an undergraduate degree cost a student? 2. How much does an undergraduate degree cost the state? 3. How much does an undergraduate degree cost an institution? The questions represented a request for information at a much higher level than that requested of MGT in Thus, a different type of analysis would have to be utilized. Models/Data Considered The Work Group, which included several members who had been involved in the MGT study, decided to evaluate three different methods of responding to the Chancellor s charge. These included the following: Expenditure Analysis The annual system expenditure analysis (EA) uses centrally reported budget, personnel and course-level data to allocate institutional expenditures by level (lower, upper, graduate). In addition to the direct costs of instruction, which are primarily personnel-related, the EA allocates indirect costs such as advising, library services, financial aid, student support, academic administration, university support and plant operations and maintenance. Expenditures associated with noninstructional activities such as public service, research, museums, public broadcasting, institutes and centers and agricultural extension are reported separately from instructional expenditures. Expenditures associated with health centers are also reported separately. Specifically the EA cost-per-degree model would add lower and upper division full expenditures and divide by the total lower and upper fundable student credit hours. The result would be total full undergraduate expenditures per fundable student credit hour. This number could then be multiplied by the number of credit hours for an approximate cost-per-degree. The advantages of this model were that it offered economies of scale, was easy to utilize, and reflected total-funded expenditures. The drawbacks were that the current EA does not include carry-forward expenditures (unspent funds from prior years spent in the current year), combines state appropriations and tuition and applies only to the SUS therefore making a national comparison difficult. It also reports expenditures that are neither completely representative of a student s 9 Page

12 contribution to his or her degree nor completely representative of the state s contribution but only a reflection of what is expended. The Delta Cost Project data The Delta Cost Study sought to examine the spending part of college cost by focusing on productivity and how funds are utilized to ensure access, equity, and successful learning outcomes. The six metrics utilized in the Delta Cost Study included: o Revenue Where does the money come from? o Expenditures Where does the money go? o Cost/Price/Subsidy What s the student s share of the costs? o Performance Outcomes and spending (including costs-perdegree) o Spending comparisons Prices and enrollments compared to spending o Enrollment Where did the students go? The data from the Delta Cost Study had advantages, including the national comparison, but was not practical for this Work Group because it combined undergraduate, graduate and federally sponsored data. Additionally, the Delta Cost Study is based on data for Fiscal Year 2010 and the Work Group wanted to utilize the most current data available. Legislative Appropriations the last option reviewed was an analysis by Florida House of Representatives staff that attempted to show the state contribution to each SUS institution for an undergraduate degree. This analysis examined total appropriations including various student financial aid appropriations and allocated an amount per student for a degree (based on 120 credit hours). The Work Group felt that this approach was of value in determining the cost of an undergraduate degree to the state, though there is volatility in the historic consistency of state appropriations to the SUS. Chosen Model The Work Group decided to begin with the appropriations analysis. The original analysis estimated cost-per-degree for the state only using state appropriations. The analysis was adapted to consider the additional research questions at hand (cost-per-degree to the student and to the institution). 1. How much does an undergraduate degree cost a student? 10 Page

13 To answer this question, the Work Group looked at the actual tuition and fees charged to each student and the amount of student financial aid (excluding loans) provided. This data was converted to a per-credit-hour amount, which then was extrapolated over 120 credit hours to estimate the cost-per-degree for the student. This estimate only covers the cost of matriculation for the student, as opposed to cost of attendance, so the Work Group saw value in adding to the calculation an estimate of books and supplies to arrive at a more realistic cost estimate for a typical student. One issue that was widely debated within the Work Group was whether the student calculation should be based on average time-to-degree for each institution or a set number of credit hours, such as 120 credit hours representing a typical 4-year program of study. Advantages in using the time-to-degree approach include the fact that this approach more closely resembles the actual amount of time a student (including first-time-incollege, AA-transfers, and others) at a specific institution takes to complete a bachelor s degree. Another advantage with this approach is it rewards institutions for being more efficient in getting students to complete in a shorter amount of time on the average. Members of the Work Group who advocated for using the credit hours to degree approach concluded that this method was less performance-oriented than time-todegree and would enable the model more flexibility in terms of altering the number of credit hours to calculate different scenarios (such as evaluating cost-per-degree for a community college transfer student with 60 hours or accommodating degree programs that require more than 120 credit hours). Altering the number of credit hours to account for A SUS undergraduate student (on average) will pay about $8,205 towards the cost of his or her degree. More than $1 billion in financial aid is provided to SUS undergraduates. Advanced Placement, for example, decreases cost-per-degree to the student, state, and institution while an extended program does the opposite. The Work Group decided to proceed with the model based on 120 credit hours rather than use time-to-degree. This approach shows that at the system level for a student (on average) would contribute $8,205 towards the cost of his or her 11 Page

14 degree. The amount of student financial aid 8 provided varies by institution based on student body demographics and financial resources of the institution. In some cases a student may receive more in financial aid than the cost of tuition, fees and books. Table 2: Student cost-per-degree summary Estimated Total Financial Aid for 120 SCH Net Student Cost per Degree (Tuition, Fees, Books less Total Financial Aid) Student Tuition, Fees Institution & Books for 120 SCH FAMU 25,258 26,619 (1,361) FAU 25,688 16,322 9,366 FGCU 26,930 14,777 12,153 FIU 27,340 17,268 10,073 FSU 27,300 18,703 9,227 NCF 23,400 25,034 (1,634) UCF 26,032 16,025 10,006 UF 26,906 22,279 4,627 UNF 26,507 16,393 10,114 USF 29,222 19,452 9,770 UWF 26,501 16,396 10,105 Systemwide $26,462 $18,257 $ 8, How much does an undergraduate degree cost the state? Using the legislative appropriations analysis as a starting point, the Work Group further refined the data. State appropriations are provided to universities in a lump sum - not by undergraduate or graduate student levels. The SUS Expenditure Analysis reports expenditures by student level, thus a three year average of undergraduate expenditures was applied to state appropriations to derive an estimated appropriation for undergraduate instruction. 9 The Work Group then added estimated undergraduate appropriations to the amount of state financial aid dollars given to SUS institutions as distributed by the Department of Education s Office of Student Financial Assistance. The total was divided by the number of undergraduate full-time equivalent The state contributes more than $300 million of financial aid to SUS students. 8 Includes institutional gift aid, federal Pell Grants and state appropriated financial aid, such as the Bright Futures Scholarship Program 9 A three year average was used to smooth out any annual fluctuations in expenditures. 12 Page

15 students and converted to credit hours. Multiplying the per-credit-hour appropriation by 120 credit hours provides the cost of an undergraduate degree to the state. Because this approach only takes operating appropriations into consideration, the Work Group felt it necessary to include an estimate of capital construction costs as well. Including the average fixed capital outlay appropriations weighted by undergraduate enrollment as a percentage of total enrollments allowed for undergraduate fixed capital outlay appropriations to be added to the analysis. This analysis shows that the state provides for (on average) $19,654 in operating appropriations towards each degree, with an additional $3,365 in capital construction costs, for a total of $22,926. Table 3: State cost-per-degree summary Institution Total State Operating Cost per Degree Total State Capital Construction Cost per Degree Total State Cost per Degree FAMU 27,093 6,056 33,149 FAU 21,328 3,739 25,067 FGCU 18,716 3,534 22,250 FIU 15,657 2,452 18,109 FSU 22,117 3,878 25,996 NCF 59,022 7,271 66,293 UCF 16,610 1,908 18,519 UF 22,037 3,737 25,774 UNF 20,894 3,365 24,259 USF 17,042 3,563 20,604 UWF 22,457 3,450 25,907 Systemwide $19,654 $3,272 $22,926 The state contributes about $23,000 towards a student s degree. 3. How much does an undergraduate degree cost an institution? An institution s cost-per-degree, unlike the state cost-per-degree calculation, includes budgeted student tuition revenues (excluding student fees). Capital construction costs are not included in an institution s cost because the state bears the cost of constructing educational facilities. 13 Page

16 Student fees are not included in an institution s cost because many of the fees go to specific non-degree related activities such as athletics, transportation, health or student activities. Although the fees are costs borne by students in their quests for degrees, the revenue is not used for instructional purposes. This difference in methodology prevents the simple addition of the student cost-per-degree and the state cost-perdegree for a sum that equals the institution cost-per-degree. Utilizing state operating appropriations and student tuition, the system cost-per-degree for (on average) is $26,807. Table 4: Institution cost-per-degree summary Total Institution Institution Cost per Degree FAMU 40,010 FAU 30,076 FGCU 30,326 FIU 25,550 FSU 25,791 NCF 69,253 UCF 22,945 UF 25,534 UNF 29,542 USF 23,263 UWF 31,627 Systemwide $26,807 The difference in institutional missions, programs and student characteristics makes it difficult to make across the board comparisons. Caveats At the outset of this study members of the Work Group acknowledged the difficulty in creating a model to capture a full cost-per-degree picture. The model aims to capture the cost-per-degree for an average student, but in reality there is no truly average undergraduate student. The result is a model that generates an estimate of cost-per-degree but is in no way perfect, as demonstrated by the following caveats: Different missions and characteristics of individual SUS institutions make it difficult to make across-the-board comparisons. Each institution has a unique history, mission and student body, and the Work Group acknowledged that these factors create a challenge for any exercise that seeks an average or high-level cost-per-degree estimate. Two of the SUS institutions have unique characteristics that merit mentioning due the variation of the cost-per-degree calculations for these institutions compared to the calculations for the rest of the institutions. For example, Florida Agricultural and Mechanical University (FAMU) is the only 14 Page

17 Historically Black College and University (HBCU) in the SUS and serves a student population where 66% of the students in had family income of less than $40,000. New College of Florida (NCF) is the only honors liberal arts college in the SUS where enrollment is only 800 students and the student-to-faculty ratio is 10:1. The model holds student financial aid, tuition, and fees constant, which is not realistic, but the Work Group felt there was no value added in attempting to forecast state appropriations, tuition, fees or financial aid changes. Cost of attendance was not used for the student estimate. Students must pay for normal living expenses such as room and board, transportation and other personal costs regardless of college attendance. The Work Group believes that tuition, fees and books are the costs that the average student incurs when pursuing a degree that are over and above the normal living expenses that everyone incurs and therefore these are the costs included in the model. The model is predicated on Florida residents. Non-resident students are expected to pay the full cost of their college education. Repayable aid (student loans) is not included in financial aid totals, although some institutions do include subsidized loans in financial aid packages and affordability presentations. The Work Group chose to focus primarily on non-repayable student financial aid. Different amounts of financial aid for students, particularly private or non-state aid make estimating student costs difficult; some students bring some outside aid to the institution such as Pell Grants and other students bring none. Outside aid would reduce the student cost-per-degree for that individual student. Differences between majors and costs associated with producing graduates in certain programs are not included in the model. The Work Group chose to focus on a high-level estimate with the acknowledgment that there are majors and programs that are more expensive than others. Advanced placement, dual-enrollment credits and transfer of credit from another college or university can affect the cost-per-degree for the student, state, and institution. The model can accommodate a change in credit hours needed for a particular degree. However for the sake of simplicity, the model is displayed with a standard 120 credit hours. The tuition differential fee 10 applies to some but not all students, and thus would have an impact on the student cost-per-degree. The Work Group 10 When the tuition differential fee was implemented, those students who had an existing Florida Prepaid tuition contract were exempted. 15 Page

18 made the assumption that the average student would pay the institution s tuition differential fee. Difficulty segregating data is an issue when using appropriations and financial aid data. The Work Group had to make the assumption that data was accurate, such as assuming that non-resident students were not receiving state financial aid dollars intended for resident students. Conclusions This project, while not without challenges, has been a valuable one for the SUS. The project fostered a collaborative drive to continue to strive for efficiency and high-quality education. A positive outcome of this exercise is the support the model gives to programs such as Advanced Placement and dual enrollment as well as community college transfers Performance funding should be determined based on a variety of educational metrics. because students bringing these credits can clearly reduce the cost-per-degree for themselves, the state, and the institution. Another positive aspect of the process and the final model is the quality of conversations about costs to students, the state, and institutions. As there was no template for creating a cost-per-degree model, the Work Group acknowledges that there will likely be much discussion among members of the higher education community as they hopefully refine this complex but timely issue. It is the ultimate hope of the Work Group that this report marks not the end, but instead the beginning of continued work on this issue. Given the complexity of this process and the number of caveats, the result is a product that is of questionable value to a performance funding process. Performance funding is of high importance to Florida s universities and their stakeholders therefore it concerns the Work Group that such funding decisions would be based on a cost-per-degree model that delivers an estimate of cost with no comparative data. The awarding of additional funding based on a low costper-degree would seem to be counter-intuitive. Institutions should be evaluated on performance, especially in the case of funding decisions, based on reliable educational metrics. Rather than being a part of a funding model, the Work Group recommends that a cost-per-degree methodology as presented in this report become a part of ongoing efforts to present students, parents and other stakeholders with transparent information about college costs. 16 Page

19 Appendix A To: From: University Presidents Council of Academic Vice Presidents Council of Administrative and Financial Affairs Chancellor Frank T. Brogan Date: January 15, 2013 Re: Staff Workgroup Cost Per Degree The ongoing development of the System s performance funding model entails a number of data points that will help define the parameters of the model. One such critical data point is cost-per-degree. This has been a challenging metric for our System to wrap its arms around, but it is an important question that must be answered. Toward that goal, I have asked our Chief Financial Officer, Tim Jones with the assistance of our Chief Academic Officer, Jan Ignash to lead a workgroup comprised of Board Office staff and university staff to develop a systematic method of calculating undergraduate cost-per-degree annually, by institution, based on state appropriations, tuition and financial aid. (Graduate cost-perdegree will come later.) Since there is no single, nationally accepted model, the group will examine cost-per-degree models from other systems or institutions around the country. Essentially, they should seek to answer three important questions: 1. How much does an undergraduate degree cost a student? 2. How much does an undergraduate degree cost the state? 3. How much does an undergraduate degree cost an institution? We know our universities provide a good return on investment to both our students and our state, and they remain among the most affordable in the nation while providing high-quality higher education. In these times of economic uncertainty, telling that story is more important than ever. We look forward to working with you on this effort. C: Board of Governors 17 Page

20 DEFINITIONS Appendix B Cost of attendance The cost of attendance includes tuition and fees plus estimates for costs, such as books and supplies, room and board, transportation, and sometimes personal or other living expenses. Matriculation The cost of matriculation includes tuition and fees only as opposed to cost of attendance, which adds estimated costs for living expenses such as room and board. Delta Cost Project The Delta Cost Project at the American Institutes for Research measures educational costs per student, student and subsidy shares of cost, and performance. Data is organized by state with a national comparison of institutions with the same classification. Institutional spending and revenues are used to create aggregate measures of costs-per-student and costs-per-degree completion. Data comes from the Integrated Postsecondary Education Data System (IPEDS) from 2009 and adjusted for inflation using the Consumer Price Index. For more information on the Delta Cost Project visit Expenditure Analysis (EA) The EA is an internal report generated annually within the SUS. This report blends Education & General (E&G) expenditures with academic effort and pro-rations of E&G academic department costs and other costs. Effort reporting covers faculty, graduate students, faculty adjuncts and other academic personnel and breaks time spent on instruction into appropriate instructional level (lower, upper, graduate). Effort reporting also assigns non-instructional time to other academic responsibilities such as research, administration, advising, and public service. The EA then uses the percentages of effort reported to each academic activity to pro-rate other academic departmental costs to instruction by level and to other non-instruction academic activities such as university support, student services, libraries and plan operations and maintenance. Financial aid Financial aid includes federal, state and institutional aid. Federal aid primarily includes Pell Grants, state aid includes the Bright Futures Scholarship Program, and institutional aid may come from private donations, financial aid fees or other institutional sources. Repayable aid, such as student loans, is not included in this analysis. State appropriations State appropriations include direct appropriations by the Legislature to institutions and for financial aid programs such as Bright Futures. Funding comes from general revenue or lottery sources. 18 Page

21 State University System of Florida (SUS) The SUS includes the following institutions: Florida Agricultural and Mechanical University (FAMU), Florida Atlantic University (FAU), Florida Gulf Coast University (FGCU), Florida International University (FIU), Florida State University (FSU), New College of Florida (NCF), University of Central Florida (UCF), University of Florida (UF), University of North Florida (UNF), University of South Florida (USF), and University of West Florida (UWF). The newest SUS institution, Florida Polytechnic University (FPU), was not included because students will not enroll until the fall of For more information about the SUS and its institutions, please visit 19 Page

22 Table 5: Student cost-per-degree Appendix D A B C D E F G H I Student Tuition & Fees for 120 SCH Books for 4 Years Total Tuition, Fees, & Books for 120 SCH Total Financial Aid Undergraduate FTE Enrollment Financial Aid per FTE (D/E) Financial Aid per FTE Converted to Credit Hours (F/30) Estimated Total Financial Aid per Enrollment (G*120 SCH) Net Student Cost per Degree (Tuition, Fees, Books less Total Financial Aid) (C-H) FAMU $20,706 $4,552 $25,258 $62,688,741 9,420 $6,655 $ $26,619 ($1,361) FAU 21,932 3,756 25,688 82,064,181 20,111 4, ,322 9,366 FGCU 22,130 4,800 26,930 36,123,127 9,778 3, ,777 12,153 FIU 22,700 4,640 27, ,787,877 32,381 4, ,268 10,073 FSU 23,300 4,000 27, ,430,059 30,416 4, ,073 9,227 NCF 20,200 3,200 23,400 5,976, , ,034 (1,634) UCF 22,336 3,696 26, ,649,384 44,842 4, ,025 10,006 UF 22,626 4,280 26, ,976,665 31,595 5, ,279 4,627 UNF 22,507 4,000 26,507 51,616,996 12,595 4, ,393 10,114 USF 23,222 6,000 29, ,748,281 31,204 4, ,452 9,770 UWF 21,701 4,800 26,501 34,389,704 8,390 4, ,396 10,105 Systemwide $22,123 $4,339 $26,462 $1,057,451, ,687 $4,564 $ $18,257 $ 8,205 NOTES: Tuition and fees and student gift aid are held constant. Undergraduate FTE enrollment is based on Education & General state fundable credit hours (based on US FTE definition) Financial Aid includes scholarships and grants from the SUS Student Financial Aid File (excludes loans). The estimate for student books comes from each institution s Work Plan. Cost-per-Degree Workgroup Report ~ May, Page

23 Table 6: State cost-per-degree A B C D E F G H I J % Estimated State Total Undergrad Appropriations Total State State Convert Credit Expenditure Allocated to State-Funded Support for Undergrad Support to Credit Hours (3-Year Undergrads Student Undergrads FTE per FTE Hours to Average) (A*B) Financial Aid (C+D) Enrollment (E/F) (G/30) Degree State Operating Appropriation Total State Cost per Degree (H*I) Institution FAMU $96,539,326 59% $56,638,525 $7,165,168 $63,803,693 9,420 $6,773 $ $27,093 FAU 142,749,016 63% 90,082,769 17,147, ,230,118 20,111 5, ,328 FGCU 45,127,478 79% 35,847,977 9,903,718 45,751,695 9,778 4, ,716 FIU 166,715,057 59% 98,751,178 27,995, ,746,710 32,381 3, ,657 FSU 248,202,232 47% 117,477,259 50,703, ,180,957 30,416 5, ,117 NCF 14,666,980 82% 12,059,053 2,032,410 14,091, , ,022 UCF 221,176,857 58% 128,605,475 57,606, ,211,851 44,842 4, ,610 UF 283,570,074 37% 105,172,729 68,892, ,065,354 31,595 5, ,037 UNF 70,480,415 73% 51,564,348 14,225,448 65,789,795 12,595 5, ,894 USF 178,812,306 51% 91,209,638 41,731, ,941,166 31,204 4, ,042 UWF 52,283,886 73% 38,173,841 8,930,428 47,104,268 8,390 5, ,457 Systemwide $1,520,323,627 55% $832,038,939 $306,334,280 $1,138,373, ,687 $4, $19,654 NOTES: State appropriations are from the General Appropriations Act (GAA); Percentage Undergraduate Expenditure is from SUS Expenditure Analysis. State-Funded Student Financial Aid includes OSFA disbursements and direct appropriation to the universities in GAA; Undergraduate FTE enrollment is based on Education & General state fundable credit hours (based on US FTE definition). Cost-per-Degree Workgroup Report ~ May, Page

24 Table 7: State cost-per-degree with capital funding added A B C D E F G Total State Cost per Degree Capital Construction Average of Appropriation (30 Years) Discount for Undergraduate FTE Enrollment Discounted Capital Construction Average (B*C) Undergraduate FTE Enrollment 4 Year Capital Construction Cost per Student (D/E*4) Total State Cost per Degree with Capital (A+F) Institution FAMU $27,093 $17,246,238 83% $14,262,805 9,420 $6,056 $33,149 FAU 21,328 21,887,391 86% 18,799,597 20,111 3,739 25,067 FGCU 18,716 9,643,523 90% 8,639,527 9,778 3,534 22,250 FIU 15,657 23,771,163 84% 19,850,434 32,381 2,452 18,109 FSU 22,117 36,550,345 81% 29,491,536 30,416 3,878 25,996 NCF 59,022 1,735, % 1,735, ,271 66,293 UCF 16,610 24,326,928 88% 21,392,628 44,842 1,908 18,519 UF 22,037 40,207,382 73% 29,518,642 31,595 3,737 25,774 UNF 20,894 11,753,526 90% 10,595,964 12,595 3,365 24,259 USF 17,042 33,097,263 84% 27,792,394 31,204 3,563 20,604 UWF 22,457 8,224,024 88% 7,236,463 8,390 3,450 25,907 Systemwide $19,654 $228,443,655 83% $189,532, ,687 $3,272 $22,926 NOTES: Capital construction average is based on actual appropriation history from through ; Discount for Undergraduate Enrollment is a ratio of undergraduate to total FTE enrollment for 10 years; Undergraduate FTE enrollment is based on Education & General state fundable credit hours (based on US FTE definition). Cost-per-Degree Workgroup Report ~ May, Page

25 Table 8: Institution cost-per-degree A B C D E F G H Institution State Appropriation and Budgeted Tuition % Undergraduate Expenditure (3- Year Average) Estimated State Appropriations Allocated to Undergraduates (A*B) Undergraduate FTE Enrollment Total State Support per FTE (C/D) Convert to Credit Hours (E/30) Credit Hours to Degree Total Institution Cost per Degree (F*G) FAMU $160,600,961 59% $94,222,758 9,420 $10,002 $ $40,010 FAU 239,617,260 63% 151,212,155 20,111 7, ,076 FGCU 93,322,965 79% 74,133,093 9,778 7, ,326 FIU 349,186,769 59% 206,835,576 32,381 6, ,550 FSU 414,350,342 47% 196,117,263 30,416 6, ,791 NCF 20,109,854 82% 16,534, , ,253 UCF 442,381,728 58% 257,227,239 44,842 5, ,945 UF 543,790,299 37% 201,685,281 31,595 6, ,534 UNF 127,144,337 73% 93,020,377 12,595 7, ,542 USF 355,775,912 51% 181,476,280 31,204 5, ,263 UWF 90,858,121 73% 66,337,904 8,390 7, ,627 Systemwide $2,837,138,548 55% $1,552,702, ,687 $6, $26,807 NOTES: Budgeted tuition is from the 2011 Operating Budget; State appropriations are from the General Appropriations Act (GAA); Percentage Undergraduate Expenditure is from SUS Expenditure Analysis; State-Funded Student Financial Aid includes OSFA disbursements and direct appropriation to the universities in GAA; Undergraduate FTE enrollment is based on Education & General state fundable credit hours (based on US FTE definition) Cost-per-Degree Workgroup Report ~ May, Page

26 For more information contact: State University System of Florida Florida Board of Governors 325 West Gaines Street, Suite 1614 Tallahassee, FL Cost-per-Degree Workgroup Report ~ May, 2013