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the higher education system is doing a poor or only fair job in Terefore, it is incumbent on colleges to carefully scrutinize how
providing value for the money spent (Wang & Parker, 2011). resources are utilized to maximize the impact on each student’s
President Barack Obama in his January 24, 2012 State of the experience and overall outcomes. Ed DesPlas, Executive Vice
Union address stated, “It’s not enough for us to increase student Chancellor of the Dallas County Community College District,
aid. We can’t just keep subsidizing skyrocketing tuition: we’ll challenged business ofcers to identify the core activities that
run out of money” (Obama, 2012). He goes on to implore states have the biggest impact on learning and treat them as priorities
to make higher education a higher priority in their budgets and (DesPlas, 2013).
encourages colleges and universities to do their part in keeping College Readiness and the Front Door
costs down. Community colleges have long served underprepared college
However, even with the President’s coaxing, it might be too students by providing developmental classes. Despite helping
wishful to expect that state legislatures will ever return to millions of students prepare for more rigorous college courses,
earlier funding formulas. Businesses learned long ago that you many states are considering eliminating these developmental
cannot increase costs more that the annual cost of living without courses. In Florida, students are no longer required to take
providing more value or service or customers become frustrated assessment tests to determine class placement. Appropriate
and seek alternatives. Colleges should be cognizant that the public placement enhances students’ likelihood of successfully
is not fully aware of the shif in funding from state to individuals. completing their desired academic programs. Students can now
Te public may be more likely to focus their attention and enroll directly into college algebra and college English, whether
frustration toward the colleges. Terefore, the burden will most they are academically prepared or not. Te Florida legislature also
likely fall on the colleges to develop new and innovative ways to wants to reduce state funding of developmental courses. How will
provide quality education at a lower cost to students. this ultimately afect persistence rates and graduation rates?
Increased Emphasis on Enrollment Planning Reduced persistence rates would have a negative impact on
With the majority of community college operating funds enrollment and could further impact the college’s fnancial
generated from students, increased emphasis will be placed on operating model which is enrollment driven. Also, since
enrollment planning. Good enrollment planning systems will be developmental classes are more likely to be taught by adjunct
critical to the fnancial health and well-being of the organization. faculty that are paid signifcantly less than full-time faculty,
According to National Student Clearinghouse Research Center the reduction of these course oferings may raise the average
(2013), in the spring of 2013 the total headcount of community instructional cost per section college-wide.
colleges dropped 3.6% from the previous year, the third straight No Cost Instruction
annual decline. Many colleges dealing with three years of Massive Open Online Courses (MOOCs) are gaining a large
double-digit growth just a few years ago cannot begin to think degree of attention. A New York Times article, “Instruction
about declines, but that is the reality. Te questions of how long for Masses Knocked Down Campus Walls”, by Tamar Lewin
will these declines continue and how to adapt to the fnancial (2012) stated, “in the past few months hundreds of thousands
impact must be addressed. of motivated students around the world who lack access to

Resource Allocation and Performance elite universities have been embracing them as a path toward
Greater emphasis on tuition increases accompanied with sophisticated skills and high-paying jobs, without paying
pressure to increase graduation rates will require colleges to tuition or collecting a college degree.” While the jury is still
carefully evaluate the manner in which resources are distributed out on MOOCs, institutions are considering the impact
and utilized. Auguste, Cota, Jayaram, & Laboissière (2010) and possible ramifcation of this very low-cost method of
identifed that two-year institutions in the top-performing instruction. An abundance of free or nearly free instruction is
quartile attained a 22% lower cost per graduate than their group likely to impact consumer perceptions of education. As people
average. Tere was no correlation between dollars per student refect on their learning experiences with these free services,
and success rates. Some of the better performing colleges had will there be comparisons made to determine the value of the
much less money per student full-time equivalent (FTE) than quality of instruction delivered by colleges and universities and
their peer group. the related costs?

LEADERSHIP Vol. 19.3 Winter 2014 17

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