Fees For Extension

Rhonda Gibler, Assistant Vice Provost

Three Year Fees Transition Process 1. Articulate the need to generate more fees

for Extension programs and services.2. Standardize the Process.3. Gather information regarding program

viability.4. Create an environment where faculty are

conscience of the cost/impact ratio of a program.

Budgeted Sources of Funding

29%

10%

20%

3%

12%

18%2%4%1% 1%

State Appropriation - 29%

Federal Funding - 10%

Fees from Continuing Education Programs - 20%

MU Allocation for Continuing Education - 3%

County Council Funds - 12%

Grants & Contracts - 18%

Recovery of Facilities & Administration Costs - 2%

Sales & Services Revenues - 4%

Gift Revenues - 1%

Other Revenues - 1%

Shift in funding sources FY01-10

1 2 3 4 5 6 7 8 9 10$0

$10,000,000

$20,000,000

$30,000,000

$40,000,000

$50,000,000

$60,000,000

Appropriated

Generated Revenue

Fiscal Year

PRO

JECT

ED

Use of fees not new to Extension

• Extension currently collects millions of dollars in fees in numerous programs.

• We are attempting to standardize our approach not start something brand new.

Why Standardize?

• Ensure equitable treatment of customers.• Establish processes that support revenue

growth for all partners.

• Ensure general funds are leveraged well and are used where fees are not as likely to be generated.

What will happen to the fees generated?

• They will be used to support Extension programming

• Initially, they may reduce the size of cuts in programming and staffing during tough federal, state and county budgets.

What will happen to the fees generated?

• Over time, fees will diversify the funding streams for Extension programs -- potentially allowing for program growth.

• High priorities for new revenues: – faculty and staff positions – faculty and staff salaries

Phased approach over three years

• This is intended to move the organization with deliberate speed.

• Allows for the gathering of input and building organizational buy in.

The standardization of the fees strategy and guidance has full administrative support and

will move forward.

Haven’t we tried this before???

Everyone in the Extension community will be involved

and has expectations to meet where fees are concerned.

We DO NOT expect to collect fees for every program

• We do however expect to conduct intentional reviews with the goal of determining what mix of resources should support the program.

In the early stages, the gathering of information about

how and where fees are currently used is as important

as revenue collection.

Two Strategies for Standardization

1. Program Directors will lead review committees in their content areas to determine by program whether a state level base fee should be charged.

Two Strategies for Standardization

2. Faculty and staff will submit revenue and expense information regarding programs where fees are collected.

Fee Generation Worksheet

• http://extension.missouri.edu/FeeGeneration/

Distribution of Revenue

• Extension state-level base fees will be remitted to Extension on campus.

• Hosts will retain the fees collected as a result of the local costs being added into the final fee charged for the program.

Distribution of Revenue

Distribution of Revenue

• In the absence of an established state base fee:– Host direct operating costs incurred for the

program are recovered first.– Revenues beyond that are distributed on a

prorated basis.

Distribution of Revenue

Consistent messages regarding fees and our transition strategy will be key to

successful implementation.

http://extension.missouri.edu/staff/feegeneration/

Fees For Extension

Rhonda Gibler