The Bottom Line: Financing Online/Blended

Programs

Dr. Rob DarrowDr. Rob Darrow

Lead 3.0 – San MateoLead 3.0 – San Mateo

April 2012April 2012

Handout: Online Cost SheetHandout: Online Cost Sheet

IntroductionsIntroductions

MeMe YouYou

A Few Definitions A Few Definitions Online LearningOnline Learning

70% or more time taught and learned 70% or more time taught and learned onlineonline

Blended LearningBlended Learning Using online learning tools to teach Using online learning tools to teach

students where some student time is students where some student time is flexibleflexible

Computer Assisted vs. Teacher LedComputer Assisted vs. Teacher Led

Online/Blended Learning Online/Blended Learning ProgramsPrograms

Computer AssistedComputer Assisted Computer assessment and Computer assessment and

computer placedcomputer placed Complete lesson (teacher in Complete lesson (teacher in

a box)a box) Multiple choice test (Pass, Multiple choice test (Pass,

continue; Fail, repeat)continue; Fail, repeat) Adult facilitated Adult facilitated

(credentialed or classified)(credentialed or classified) Education 2020Education 2020 PlatoPlato Apex LearningApex Learning

Teacher LeadTeacher Lead Teacher places studentsTeacher places students Teacher at end of every courseTeacher at end of every course Students advance based on Students advance based on

teacher assessment (some may teacher assessment (some may be multiple choice)be multiple choice)

Online interaction (e.g. Online interaction (e.g. discussion boards, discussion boards, synchronous online synchronous online lessons/office hours)lessons/office hours)

One teacher every courseOne teacher every course K-12, Inc.K-12, Inc. Florida Virtual SchoolFlorida Virtual School Connections AcademyConnections Academy

Which costs less?

Who Has…Who Has…

A Blended Learning Program? A Blended Learning Program? An Online Learning Program An Online Learning Program

(students taking courses online with (students taking courses online with teachers not in the same school)teachers not in the same school)

In California…how do we fund In California…how do we fund schools? (Finance 101)schools? (Finance 101)

ADA – Average Daily AttendanceADA – Average Daily Attendance 1 student in school 1 day = 1 ADA 1 student in school 1 day = 1 ADA

(or FTE). (or FTE). Cannot split ADACannot split ADA

Independent StudyIndependent Study Grants / Fees / Fund Raisers /Grants / Fees / Fund Raisers /

Student PaysStudent Pays

California California FinanceFinance

ADAADA ( (““seat timeseat time”” - 240 - 240 minutes each day) minutes each day)

Independent StudyIndependent Study (student (student gets hours based on work gets hours based on work and physically meets a and physically meets a teacher once a week). teacher once a week).

Charter Charter (ADA or Ind Study)(ADA or Ind Study)

1 student in school 1 day = 1 ADA.1 student in school 1 day = 1 ADA.

Two California Two California School DistrictsSchool Districts

Kings Canyon Kings Canyon UnifiedUnified

Dunlap Leadership Dunlap Leadership Academy - 2008Academy - 2008

(Students: 9700; (Students: 9700; Teachers: 439)Teachers: 439)

www.dunlapleadershipacademy.com/

Clovis UnifiedClovis Unified Cal Online Cal Online

(2000-2005)(2000-2005) (Students: 37,000; (Students: 37,000;

Teachers: 1752)Teachers: 1752)

Two California Two California School DistrictsSchool Districts

Kings Canyon UnifiedKings Canyon UnifiedFull time online studentFull time online studentStudents may attend Students may attend computer lab computer lab weekly/daily weekly/daily Monthly check in with Monthly check in with teacher face-to-faceteacher face-to-faceOne teacher facilitates One teacher facilitates all coursesall courses

Clovis UnifiedClovis UnifiedPart time online student Part time online student (no more than one online (no more than one online course)course)Face to face trainingFace to face trainingOnline check in with Online check in with teacherteacherOne teacher per courseOne teacher per course

Clovis Unified

Kings Canyon USD

Kings Canyon Unified

Dunlap…the one area of the district Dunlap…the one area of the district without a high school.without a high school.

WhereWhere’’s Dunlap? Population: 131s Dunlap? Population: 131

Dunlap Leadership Academy

Why?Why?

Kings Canyon USD

Financing: Dunlap Leadership Academy

California FinanceCalifornia FinanceADA DifferencesADA Differences

Per student, per yearPer student, per year

Kings Canyon - Kings Canyon - $6,063$6,063 Clovis Unified –Clovis Unified – $5,983$5,983 Modesto City - Modesto City - $5,839$5,839 Sylvan– Sylvan– $5,551$5,551 Patterson - Patterson - $5,290$5,290 Charters -Charters - $6,600 $6,600 (9-12)(9-12)

Ed. Data Figures, Unrestricted ADA, 2009-10

Dunlap Leadership AcademyDunlap Leadership Academy

30 students - ADA30 students - ADA 30 students X $6100 = 30 students X $6100 = $183,000$183,000

per year. per year. Special program funding - $650 Special program funding - $650

per student (or another $20,000)per student (or another $20,000) Total Income: Total Income: $203,000$203,000. . Round to Round to $200,000$200,000

See Handout: See Handout: Calculating CostsCalculating Costs

Dunlap Leadership Dunlap Leadership

AcademyAcademy Course Course Content Content

Provided by Advanced Academics. Provided by Advanced Academics. Cost: $400 per student per course.Cost: $400 per student per course.

5 courses per student.5 courses per student. $400 X 30 students X 5 courses = $400 X 30 students X 5 courses =

$60,000.$60,000.

Course Management Course Management System (Moodle, Bb)System (Moodle, Bb)

Included in “content” priceIncluded in “content” price

Other Online ToolsOther Online Tools

Use district student information Use district student information system (no cost)system (no cost)

No additional software usedNo additional software used

Equipment CostsEquipment Costs

Computer LabComputer Lab

Cost for Cost for hardware (30 hardware (30 computers): computers): $30,000$30,000..

Administrative CostsAdministrative Costs

(($50,000$50,000) Principal – Part time (shared ) Principal – Part time (shared with school across the street) with school across the street)

($40,000) ($40,000) Secretary/lab aide and Secretary/lab aide and campus aide campus aide 8:00-2:00 each day – 30 hours per week. 8:00-2:00 each day – 30 hours per week.

($10,000) ($10,000) Custodian (part time – Custodian (part time – shared with school across the street).shared with school across the street).

Total Personnel Cost: Total Personnel Cost: $100,000 $100,000

Dunlap Leadership AcademyDunlap Leadership Academy SuppliesSupplies

Supplies = Supplies = $5,000$5,000. .

Teacher CostTeacher Cost

Included in “content cost”Included in “content cost”

Special EducationSpecial Education

““Built in” to the programBuilt in” to the program

Now, Add it up!

Dunlap Leadership AcademyDunlap Leadership Academy Income and ExpensesIncome and Expenses Income by ADA: Income by ADA: $200,000$200,000. .

Personnel: $100,000 (no hired dist Personnel: $100,000 (no hired dist teachers)teachers)

Equipment: $40,000Equipment: $40,000 Content and Teachers: $60,000Content and Teachers: $60,000 Supplies: $5,000Supplies: $5,000

Expense Total: Expense Total: $205,000$205,000 Income – Expenses = Income – Expenses = - ($5,000)- ($5,000)

Asst. Supt. BusinessAsst. Supt. BusinessSees:Sees:

Cost Per Student Cost Per Student Cost = $200,000Cost = $200,000

30 students = $6600 per student. 30 students = $6600 per student. 50 students = $4000 per student.50 students = $4000 per student. 120 students = $2000120 students = $2000

Clovis UnifiedClovis Unified

Unified in 1960: Unified in 1960: one high school / intermediate school, one high school / intermediate school,

4 elementary schools4 elementary schools

Clovis UnifiedClovis Unified

District motto: District motto: ““Be the best you can in Be the best you can in mind, body and spiritmind, body and spirit..””

In 2008: In 2008: 28,00028,000 students – 12,000 in students – 12,000 in high school. high school. 6 high schools, 5 intermediate schools 6 high schools, 5 intermediate schools

and 32 elementary schools.and 32 elementary schools.

Clovis UnifiedClovis Unified

Cal OnlineCal Online

Part time students – may not take Part time students – may not take more than one online coursemore than one online course

4 total courses (Bio, Alg 1, Eng9, 4 total courses (Bio, Alg 1, Eng9, Government/Economics)Government/Economics)

First classes: June 2001First classes: June 2001

Clovis UnifiedClovis Unified

Cal Online ADA = 0Cal Online ADA = 0

Budget: Budget: $250,000$250,000 Funded from 2000-2006 by Funded from 2000-2006 by

12 different grants and 12 different grants and funds over 6 years – no funds over 6 years – no ADA or General Fund.ADA or General Fund.

Financing: Cal OnlineFinancing: Cal Online

Course ContentCourse Content

Licensed from Florida Virtual School.Licensed from Florida Virtual School. $20,000 $20,000 per yearper year

Then, created own. One time cost for Then, created own. One time cost for teacher development: $5,000teacher development: $5,000

Course ManagementCourse Management

MoodleMoodle Cost: (0 – used district server; except Cost: (0 – used district server; except

the cost of the tech person)the cost of the tech person) Full time online tech assistant Full time online tech assistant

monitored and organized courses into monitored and organized courses into MoodleMoodle

Other Online ToolsOther Online Tools

District Student Information SystemDistrict Student Information System Elluminate Online Conferencing Elluminate Online Conferencing

System: System: $5,000$5,000

Equipment CostsEquipment Costs

MaterialsMaterials: : (textbooks, lab kits, etc.): (textbooks, lab kits, etc.): $6,000$6,000

Teacher cell phones: Teacher cell phones: $4,000$4,000

Total: Total: $10,000$10,000

Administrative CostsAdministrative Costs

Full time Coordinator, and Full time Coordinator, and online tech assistant online tech assistant

TOTAL: TOTAL: $120,000$120,000

Teacher CostsTeacher Costs

District teachersDistrict teachers 4 part time teachers – ($15,000 each)4 part time teachers – ($15,000 each) Total: Total: $60,000$60,000

Special EducationSpecial Education

Provided by district (no direct cost)Provided by district (no direct cost) Consult and observeConsult and observe

Now, Add it up!

Add It UpAdd It Up

Income by ADA: Income by ADA: -0--0-. . Content: $20,000Content: $20,000 Other Online Tools: $5,000Other Online Tools: $5,000 Personnel: $180,000 (Admin and Tchrs)Personnel: $180,000 (Admin and Tchrs) Equipment: $10,000Equipment: $10,000

Expense Total: Expense Total: $215,000$215,000 Income – Expenses = +Income – Expenses = +$45,000$45,000

Asst. Supt. BusinessAsst. Supt. Business

100 students enrolled in 4 100 students enrolled in 4 courses.courses.

$215,000 Costs$215,000 Costs Divided out: Divided out: $2150$2150 per student per student

(in addition to the face-to-face (in addition to the face-to-face school costs)school costs)

Clovis Unified - Cal Online Clovis Unified - Cal Online

Ended in 2006Ended in 2006

No finance model worked for part time No finance model worked for part time studentsstudents

Create Your Own Create Your Own Finance Plan Finance Plan

Fill in your “estimated” cost chart.Fill in your “estimated” cost chart.

2020 Visions Report 2020 Visions Report (2006)(2006)

$1 mil to start up an online school$1 mil to start up an online school

Bellsouth Foundation (2006). Anderson, Bellsouth Foundation (2006). Anderson, A.B., Augenblick, J., and DeCesare, D., and A.B., Augenblick, J., and DeCesare, D., and Conrad, J.Conrad, J.

Online School Online School Finance ChallengesFinance Challenges

Economy of scale: Need money or Economy of scale: Need money or studentsstudents

With full complement of courses, how With full complement of courses, how do you reduce costs?do you reduce costs? Contract content out?Contract content out? Teachers?Teachers? Develop own content?Develop own content? Get more students?Get more students?

Lessons Learned:Lessons Learned:Via research and Via research and

experienceexperience Get all district admin Get all district admin on boardon board TalkTalk with all with all ““stakeholderstakeholder”” groups groups

in establishing your online school in establishing your online school (counselors, special education, (counselors, special education, etc.)etc.)

Identify budget income for Identify budget income for 3 years3 years Lack of money = no programLack of money = no program

ResourcesResources iNacol, International Organization for K-12 Online

Learning – www.inacol.org CUE (and the eLearning SIG) – www.cue.org Keeping Pace - http://kpk12.com/ Ca eLearn Framework -

http://www.ccsesa.org/index/hotTopics.cfm Ca Dept of Ed -

http://pubs.cde.ca.gov/tcsii/onlineeducation/onlineeducindex.aspx

Online Learning Research about Costs - Online Learning Research about Costs - http://www.onlinelearningvisions.com/research

Contact

Rob @ OnlineLearningVisions.com

Web: www.OnlineLearningVisions.com

Rob’s Wiki: http://robdarrow.wikispaces.com