I do a little armchair speculating and in comes not a breath but a hurricane of fresh air from the real world. I received this today from a reader of this blog. It is self-explanatory. I feel like an MSNBC commentator on the pandemic who just interviewed Dr. Fauci. I think the revolution is going to take a bit longer than I had hoped.
Guest Post
Back in 2015—a few years after Prof. Wolff commented on a
chapter of my dissertation thanks to a comment I left on this very blog—I got a
job as a program director for a group of credit-bearing programs in the
continuing education division of a large public university. (Mine was a
smallish unit in a very large continuing education division.) My role was to
plan and staff around 200 open-enrollment courses per year, taught by ~120
adjunct instructors, across the humanities and social sciences. My unit had around
4,000 enrollments per year. The divison's mandate is to be self-supporting: it
receives no state funding for any of its offerings (and reimburses the main
university for any expenses used, e.g. classroom space).
I'm going to keep names out of this post so that google
results don't come back to haunt me in some way down the line, but all the
numbers below are actual numbers, from a 2017 planning spreadsheet.
I went from the armchair to monitoring enrollments, managing
budgets, and making really, really painful decisions to cancel courses due to
low enrollment. I left after 3 years, and while I'm happy to have learned a lot
from the experience, I'm also happy not to have to cancel people's classes (and
income) for low enrollment any more.
We were not the leanest possible higher ed organization that
could exist in the actual world, but we were pretty darn lean. Keeping that in
mind, you might find it interesting to hear some of the actual numbers that
went into making what we called "go/no-go" decisions at the
individual section level.
Consider one individual course. Make it a social science
course where we can expect better enrollments, which gives us a little more
breathing room to pay the instructor more (which we'll have to, if we want to
get an economist to expend their valuable labor teaching a continuing ed
course).
Predict total enrollment of 15 students. Tuition (in 2017)
was $698 for the course. (We really did try to keep our fees low and
accessible.) You'll gross $10,740 in tuition.
Let's pay the instructor, say, $3528 for the course. That's
on the low end of market value for a quarter-length course, but we'll probably
be able to staff the course.
There's your direct expense. Now comes the overhead:
* You'll need to allocate $1,960 for departmental staffing
overhead. This pays for the salaries and fringe benefits for myself (the
program director) and 1.5 department administrators (one full time, one
splitting half their time between this and another program). Those
administrators onboard instructors into the payroll system and the online
learning management system; answer student inquiries about our courses and do
advising on, e.g., where our courses are accepted for transfer credit (which is
the reason many students take our courses); and complete many other clerical
tasks (which are unevenly distributed among courses and instructors: some
instructors are very, shall we say, high maintenance, while others are
basically totally independent). That also includes a fraction of the salary for
a 'business services' finance person who has a much larger portfolio and
processes financial transactions—an accountant, basically (moneybags the
continuing education nonprofit administrator must be so lucky!). THE KICKER
with these costs: all these people are on payroll regardless, so if enrollments
start to decline (as they did when I was there: the decline in humanities
enrollments hit us like it did everyone else) and you offer fewer courses, the
expense allocated to each individual course goes up rather quickly.
* $3,692 for an "Administrative and Institutional"
allocation: this pays for the general institution-wide expenses: electricity,
lights, furniture, repainting once in a while, etc. Also the dean's office, HR,
the registrar, a student record database system (which is not cheap!) to make
sure you can get students accurate transcripts, and many other things. For a
time when I was there, the institution was also trying to sock away enough
money to pay for our office building to be retrofitted to be seismically sound.
Also, in general, as a nonprofit you want to have around 6–12 months of
expenses in reserves so that a downturn won't force you to close overnight. All
that saving-for-a-rainy-day-and-maybe-not-to-die-in-an-earthquake funding comes
out of this bucket.
* A marketing assessment of $1466: this can seem fairly high
but is absolutely essential if you're doing course-by-course open enrollment as
we did. I don't care how wonderful your course is, if you don't market it, too
few people will enroll and you'll have to cancel. This covers creating a course
catalog and an institutional website as well as some course-by-course marketing
through e-mails, social media ads, etc.
* A classroom assessment of $1,047, which, at the time,
weirdly, was socialized across all courses—online or in person. The idea was to
remove incentives for program directors to choose online or in-person
modalities based on cost, so that we'd be more responsive to what students
actually want.
* An ITAV assessment of $209: this pays for that IT guy.
Actually, a really good IT department that went above and beyond to support our
mission.
* An assessment by the Office of the President (yes, for the
whole system) of $127. Sheesh.
Overall, you have $3528 in instructor expenses and $8036 in
overhead. That's a little top-heavy because our enrollments were dropping,
which meant fewer courses running, which meant the staff costs (the first item
in my list) were higher per course. The "Administrative and
Institutional" costs were also a little high when I was there; when I
heard people talking about the absolute leanest we had ever been, they would
cite a number about 20% lower.
Anyway: with 15 students, and all costs allocated, this
course "loses" $824. To show that the course is self-supporting,
you'd need 2 more students to enroll. I'd probably run the course with 15
students anyway, since a lot of those costs would stay around even if we cancel
the course; but to have a healthy unit, it would be good to have higher average
enrollments (or, sigh, cut staffing costs).
Now, a caveat: with a large number of part-time adjunct
instructors, we needed slightly more staff positions to handle academic
planning (me) and making sure that all the clerical items get done (the other
staff) than you'd find in a regular university context. I was the only one you
could call overpaid; the other admin staff worked their butts off to keep
things running.
I'm not trying to defend this way of thinking about higher
education. Still, I found it eye-opening to be in a context where I was
expected to systematically think about all of our costs, which people had
attempted to distribute in a somewhat-reasonable way to specific courses.
WOW, 1,000 words? I guess I had some things to get off my
chest…