High Cost Program Presentation


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Presentation about LATTC's high cost CTE programs and alternative funding methods

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High Cost Program Presentation

  1. 1. Trade Technical College has been offering Career Technical Programs since 1925
  2. 2. Over the past 5 years, Trade Technical College has educated over 75,000 people in Career Technical Education and Training Programs
  3. 3. 75% of Trade-Tech’s programs are Career Technical
  4. 4. 53% of students coming to Trade Tech are here to achieve two year or shorter… <ul><li>Career Related Goals </li></ul>
  5. 5. LA Trade-Tech is the number 1 community college in the state for awarding AA/AS degrees in: <ul><li>Family and Consumer Sciences </li></ul><ul><li>Fashion Design </li></ul><ul><li>Culinary </li></ul><ul><li>Electrical </li></ul><ul><li>Carpentry </li></ul><ul><li>Labor Studies </li></ul><ul><li>Plumbing </li></ul><ul><li>Diesel Technology </li></ul><ul><li>Telecommunications Technology </li></ul><ul><li>HVAC </li></ul><ul><li>Machining and Machine Tools </li></ul>
  6. 6. AT WHAT COST?
  7. 7. High Cost Program Criteria <ul><li>29 Career-Technical Education (CTE) Programs have been identified as “high cost” by meeting all of the following criteria: </li></ul><ul><li>VATEA Eligible </li></ul><ul><li>Has required Lab Space </li></ul><ul><li>Assignable Square Footage (ASF) per Student > 30 </li></ul><ul><li>Requires specialized equipment </li></ul><ul><li>Requires equipment maintenance </li></ul><ul><li>Requires consumable supplies </li></ul><ul><li>Requires instructional support staff </li></ul>
  8. 8. Key Financial Factors Impacting CTE Program Viability <ul><li>Direct Program Costs </li></ul><ul><li>Lost Revenue due to Class Size Limitations </li></ul>
  9. 9. Direct Program Costs <ul><li>Direct Costs include the Costs of: </li></ul><ul><li>Maintenance of lab space </li></ul><ul><li>Specialized/Required Storage space </li></ul><ul><li>Equipment </li></ul><ul><li>Equipment Maintenance </li></ul><ul><li>Consumable Supplies </li></ul><ul><li>Specialized Staff required to maintain program </li></ul><ul><li>(Costs are normalized in that they are over and above the cost to maintain a General Education Class) </li></ul>
  10. 10. Lost Revenue Due to Class Size Limitations <ul><li>High Cost CTE Ave Class Size= 17 </li></ul><ul><li>General Education (GE) Ave Class Size = 31.7 </li></ul><ul><li>Definition </li></ul><ul><li>Lost Revenue equals FTES revenue that would have been gained if High Cost Programs had the same enrollment capacity and average class size of GE programs (e.g. 31.7 students per class). </li></ul>
  11. 11. Direct Program Costs (1 Semester) <ul><li>High Cost CTE Programs = $1,233,846 (above GE costs) </li></ul><ul><li>GE Programs = $0 </li></ul>
  12. 12. CTE Program Costs and Lost Revenue (For 1 semester) <ul><li>Direct Program Costs, Salaries, and </li></ul><ul><li>Lost Revenue due to Class Size Limitations </li></ul>
  13. 13. Effects on Revenue Using all 3 Cost Variables (1 Semester)
  14. 14. New - High Demand Programs <ul><li>A key priority for Trade-Tech is to develop new programs that are in high demand to meet the needs of the business community. </li></ul><ul><li>This includes: </li></ul><ul><li>Starting new programs, and </li></ul><ul><li>Expanding existing programs to meet industry demand. </li></ul>
  15. 15. Startup Costs (examples) <ul><li>Culinary Program expansion/renovation: </li></ul><ul><li>$13 million to expand the Culinary program at Trade-Tech to meet student demand. </li></ul><ul><li>New Automotive Paint Program: </li></ul><ul><li>Approx $4.5 million to start up a new Automotive Paint Program that would meet industry standards. </li></ul>
  16. 16. New High Cost Program Analysis <ul><li>Developing new programs to meet the needs of the community is a fundamental goal. </li></ul><ul><li>However, the cost of developing such a program is so prohibitive, it is nearly impossible without a mechanism to fund such programs. </li></ul>
  17. 17. Other High Cost Program Studies <ul><li>Other states, based on comprehensive cost study results, have recognized the necessity to fund CTE programs at a higher rate to compensate for both higher direct costs and revenue limitations. These states include: </li></ul><ul><li>Kansas, Mississippi, Arkansas, Nebraska, Pennsylvania, Massachusetts, and Texas. </li></ul>
  18. 18. Examples of CTE Differential Funding Formulas Varies by program or field 5 other states “ light” – 1.5 “ heavy” – 2.0 Nebraska 1.19 Mississippi 1.75 Kansas 1.5 Arkansas Differential Funding Formula State
  19. 19. Summary of Cost Study Analysis <ul><li>58% of Trade-Tech’s disciplines are Career-Technical – 29% of which have been identified using the 6 aforementioned categories, as high cost </li></ul><ul><li>Net revenues for high cost CTE programs at Trade-Tech are 68.7% lower than GE programs </li></ul><ul><li>Total costs of high-cost CTE programs are 5.9 times greater than GE programs </li></ul><ul><li>Other states have implemented differential funding multipliers for CTE programs ranging from 1.19 to 2.0 (an average of 1.59) </li></ul>
  20. 20. Recommendation <ul><li>To approve and implement a funding differential multiplier of 1.59 / FTES for high cost CTE programs. </li></ul><ul><li>[Note: this multiplier equals both the total cost difference between CTE and GE programs at the college AND the average CTE multiplier of other states with differential funding] </li></ul>