What Are Institutions Doing (or Not Doing) about State Authorization - PowerPoint PPT Presentation

What Are Institutions Doing (or Not Doing) about State Authorization -- Revisited February 27, 2013 • The webcast will begin at the top of the hour. • There is no audio being broadcast at this time. time. • If you need assistance, contact Blackboard Collaborate: 866-388-8674. • An archive of this webcast will be available on the WCET website next week.

What Institutions are Doing (or Not What Institutions are Doing (or Not Doing) about State Authorization February 2013

What Are Institutions Doing (or Not Doing) about State Authorization -- Revisited Welcome. • Megan Raymond, WCET Thank you Blackboard • Collaborate! If you have technical issues: If you have technical issues: • • Call 866-388-8674 Use the chat box for • questions. Archive, PowerPoint, and • Resources available next week.

What institutions are Doing (or Not Doing) about State Authorization? Jim Fong Bruce Chaloux Russ Poulin UPCEA Center for Executive Deputy Director, Research and Director and CEO Research and Consulting Sloan-C Analysis, WCET

Demographics Most of the respondents represent public and private non-profit four-year institutions. The 19% of respondents from private for-profit The survey respondents are evenly distributed institutions, community colleges, and other institutions among enrollment sizes. The institutions, based on have been combined in a single group for the remainder the type of institution and number of FTEs, is similar of this report. to 2011 and allows for reasonable comparisons. Type of Institution Estimated number of full-time equivalent (FTE) students Other 3% Private for- Private for- Community profit 4-year college More 4% 12% Under than 5,000 20,000 27% 28% Public 4-year Private non- 54% profit 4-year 10,001 to 5,001 to 27% 20,000 10,000 25% 20% n = 179

Number of other states/territories/protectorates in which online or correspondence courses are offered On average, the institutions surveyed said that they serve 32 states, territories or protectorates with online courses. There are differences based on the size and type of institution. Average Median Public 4-year, n=86 35 34 Smaller schools tend to operate in fewer number of operate in fewer number of Private non-profit 4-year, n=41 Private non-profit 4-year, n=41 34 34 30 30 states, with an approximate median of 11 states Other, n=30 26 21 (excluding its own). <5,000, n=37 25 11 5,001 to 10,000, n=32 26 21 Institutions with more than 20,000 enrollments operate 10,001 to 20,000, n=40 34 30 in a median 49 states. The >20,000, n=46 43 49 overall median is 36. Overall, n=176 32 36

Progress in addressing the state authorization regulation Institutions have made steady progress since 2011 Applied/received No action taken approval from all � Just over half have applied to one or more states (52%), as 5% states of interest 2012 compared with 28% in 2011 15% � 15% are finished with the application process in all states in which they plan to serve students, as compared with 5% in Initial steps, no 2011 formal contact or application to any � Five percent have yet to take action states 18% Contacted States, no applications No Action Applied to all 3% states of 9% 2011 interest Applied to one or 5% more states 52% Applied to one or more states Initial steps 28% 38% n=206 Contacted states, no application 26% n=215

Reasons for not applying for state authorization 60% Waiting for more clarification 6% 62% In the process/Collecting info 36% 37% We have no staff available to file applications 29% 18% The cost is too high 15% 17% We believe we are exempt from having to comply 10% 12% Waiting for states to ask us 0% 15% 2012, n=60 We believe the regulation will be repealed 19% 17% State or school system handling issue 13% 2011, n=145 8% We have only a few students from out-of-state enrolled 5% 5% Operating only in the states … not triggering physical presence 3% We are offering very few online courses 3% Other/Don't know 1% � For those who responded, the majority have not applied for a state authorization because they are still awaiting clarification, or are in the process of applying. However, it should be noted that fewer, compared to last year, are not apply at all, which suggests institutions are less likely to completely wait. � In 2011 a greater proportion believed that the regulation would be repealed (19% in 2011, 15% in 2012). � The biggest reasons in 2012 are awaiting clarification, in the process/collecting info, and lack of staff. � Another reason includes awaiting licensure from a school’s own state .

Expected Compliance Costs The chart shows the expected compliance costs and that approximately one in five expect to pay nothing. It is likely that these institutions are applying to states that require no fees. Larger institutions are less likely to pay nothing. These compliance costs do not include staff costs. By Institution Type By Enrollment Size A private non-profit 4-year >20,000, n=41 12% 7% 29% 24% 27% 15%0% 38% 28% 18% institution, n=39 10,001-20,000, n=34 32% 3% 29% 21% 15% A public 4-year institution, n=80 18% 9% 34% 24% 16% 5,001-10,000, n=27 26% 15% 30% 19% 11% Other, n=24 38% 17% 29% 8% 8% <5,000, n=40 15% 5% 48% 25% 8% $0 $1-1,000 $1,001-10,000 $10,001-50,000 $50,001+ $0 $1-1,000 $1,001-10,000 $10,001-50,000 $50,001+

Expected Compliance Costs (zeros removed) If institutions are applying to states with fees, most institutions still expect to spend $10,000 or less on compliance costs, with private non-profit 4-year institutions spending the most. In general, the larger the enrollment size, the greater spending expected for compliance costs. By Institution Type By Enrollment Size Type* Average* Median* Type* Average* Median* <5,000, n=34 <5,000, n=34 $32,708 $32,708 $15,000 $15,000 $52,623 $12,500 A private non-profit 4- year institution, n=33 5,001-10,000, n=20 $57,430 $10,000 $48,034 $10,000 A public 4-year 10,001-20,000, n=23 $46,148 $10,000 institution, n=66 $37,990 $10,000 >20,000, n=36 $59,822 $25,000 Other, n=15 * The values in this table have been calculated from the stated costs excluding $0

Expected FTE compliance staffing By Institution Type By Enrollment Size Compared to last year, some institutions have assigned staff to work on A private non-profit 4-year >20,000, n=44 14% 32% 27% 27% 8% 50% 28% 14% compliance. institution, n=36 The majority of 10,001-20,000, n=35 29% 26% 26% 20% institutions have fewer A public 4-year institution, 17% 36% 28% 19% than 0.5 FTE staff working n=83 on state authorizations. 5,001-10,000, n=29 14% 38% 38% 10% Private and public non- profit 4-year institutions are similar in their are similar in their Other, n=30 Other, n=30 27% 27% 20% 20% 23% 23% 30% 30% staffing, but other types of <5,000, n=39 13% 51% 18%18% institutions have the greatest personnel 0-.10 .11-.50 .51-1.0 1.1+ 0-.10 .11-.50 .51-1.0 1.1+ commitments. Type Average Median Type Average Median In general, the distribution of FTE staffing for state A private non-profit 4- <5,000, n=39 .75 .35 .83 .50 year institution, n=36 authorizations is similar 5,001-10,000, n=29 1.34 .50 .82 .50 across enrollment size. A public 4-year 10,001-20,000, n=35 .81 .50 institution, n=83 1.54 .88 >20,000, n=44 1.05 .88 Other, n=30

Leadership Involvement, Overall Distance and Continuing Education Directors drive the approval process, with 85% being somewhat or very involved. Chief Academic Affairs Officers and Legal Counsel also have relatively high involvement. The Faculty Senate is the least likely to be involved or informed. President, n=173 18% 61% 13% 8% Chief Academic Affairs Officer, 3% 37% 38% 22% n=178 Chief Business Officer, n=174 Chief Business Officer, n=174 23% 23% 51% 51% 19% 19% 7% 7% Legal Counsel, n=170 19% 23% 35% 23% Distance/Continuing Education 8% 7% 15% 70% Director(s), n=169 Academic Deans, n=169 18% 44% 28% 11% Not at all involved Informed, but not actively involved Somewhat involved Very involved n=181

Seeking Authorization in all States Percentage that will be seeking authorization from all 59 states, territories, and protectorates Overall, n=179 27% 2011: Will you be seeking approval from all states, territories, and protectorates? A private non-profit 4-year 33% institution, n=49 A public 4-year institution, n=96 30% Other, n=34 12% Yes No 44% 56% 56% Under 5,000, n=48 19% 5,001 to 10,000, n=35 20% 10,001 to 20,000, n=45 n = 211 27% More than 20,000, n=51 41% About 27% of respondents expect their institution to seek authorizations from all states, a decrease from 2011 (44%). The larger the enrollment size, the more likely they will seek authorization from all states.

Not Seeking Authorization Are there states from which you now believe you will not seek authorization (due to requirements and/or costs) or can no longer accept students? Which states? 2011, n = 122 2011, n = 119 No 25% No 41% Yes 59% Yes 75% � Of those not seeking authorization in all 59 states, protectorates and territories, about ¾ said that they will be bypassing some states. These institutions named 45 states/territories.