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Opinion
Getting the Money Right
12/12/2006
Penn State. In 1998 he launched the Penn State World Campus, now called the university’s “25th Campus” and offering more than 50 online degrees and certificate programs. Similarly, in September of 2005, in his inaugural speech as the new president of the University of Illinois, B. Joseph White included a vision that a fourth campus – a virtual campus – might be part of UI’s future.Basic Funding Models
Funding models for distance and online learning are in a state of flux even at some established institutions. A funding model might be instituted at the launch of distance and online learning programs and be quite effective in providing support and investment of new programs – only to be modified over time and under new administrative management or leadership. In other words, these programs are subject to the vagaries of the budgeting process, shifts in strategic priorities, and changes in leadership at either the institutional or college level. Many of those interviewed also suggest that funding models are quite sensitive. They maintain that small changes in revenue sharing can have large effects: the famous butterfly effect at work here!
As with any business, funding models need to accommodate three types of activities: venture capital/start-up funds, operational funds, and research and development funds for growth. Here is how some institutions are budgeting for these activities:
Venture capital/start-up funding . Most of the successful distance and online learning programs were started with seed money/development money from one or many sources, including grants, central administration, and state initiatives. Another strategy is to partner with another business entity.
Operational funding. Institution-wide distance and online learning organizations, occasionally morphed from historical correspondence organizations, tend to be cost centers and thus assume responsibility for a wide array of services and support targeted at the online learner. The trend toward reliance on course management systems often means that the distance and online learning organization uses the central course management system and is assessed a fee for the staff and services of this part of the infrastructure.
Research and development funds. A successful funding model for distance/online learning programs often includes revenue sharing with deans and faculty while also providing sufficient revenue for all the elements of a quality support and learning organization. These elements include marketing, recruitment, admissions, registration and payment, orientation, records and advising, and technical and information resource access.
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