Technology & Learning
Community

From the Field

September 1996

Project Reinvest:
Developing an Economic Planning System for
Technology-Based and Distance Learning.
by Robert H. McCabe

The growing use of information technology on campus and in distance education will play a major role in the evolution of the learning college. It does, however, introduces additional cost elements and complexity. Colleges are accustomed to dealing principally with class size, classrooms, and faculty as the only variables in educational budgeting. In these new programs, institutions must use much more sophisticated economic planning and management systems. Under Project
Reinvest, the League for Innovation in the Community College is developing a major new management tool—an economic planning system for technology-based and distance learning projects. It will include a computer-simulation model designed for use by educational planners who may not be sophisticated in finance.

Growth In Distance Learning 
Momentum to use information technology in delivery of on-campus and distance learning programs is escalating, driven by the rapidly expanding capabilities of the technology, the growing involvement with technology in everyday life, and the conviction by legislators and other leaders that there are cost savings to be found.

Throughout the country, there is pressure on legislatures to limit expenditures. At the same time, the cost of operating more prisons, the need for better social services, and required infrastructure improvements are squeezing allocations to higher education. In this tight financial environment, enrollment in higher education is forecast to increase substantially. Faced with inadequate resources, and without really understanding distance education or educational technology, legislatures are embracing distance learning and technology as the "silver bullet" that will reduce the need for additional funds for higher education.

The excitement that is driving the interests of educators is in the exploding capabilities for interactive communications. Yet, most institutions are proceeding with both over-costly models and inexpensive, poor quality, passive distance education systems, much like those that failed two decades ago.

Planning and Management System 
Without doubt, there will be rapid expansion of distance learning programs, and this in turn can be the catalyst for finally developing new designs for campus-based education. Unless institutions have the tools to plan for cost-effective/learning-effective programs, the significant potential for improving learning and access to learning while containing costs will be wasted. These gains can only be realized if institutions are prepared to restructure the delivery of educational services and to develop educational plans and budgets in an entirely different way than they typically do.

The Purpose of the League Project 
The purpose of the League project is to develop an economic planning system that will be a practical tool for higher education institutions in planning cost- and learning-effective, technology-based, and distance learning programs. The project will:

1. identify the components of learning programs (both for
development and for delivery) that are available to facilitate
successful learning. 

2. determine the costs associated with various options for both development and delivery. 

3. compare the costs of acquiring instructional materials and
software to in-house development. 

4. estimate the cost and income prospects from sales of
materials. 

5. combine the anticipated development and delivery costs
with forecast income from enrollment and/or sales, in order to
do a cost/benefit analysis of proposals for information
technology-based and distance learning programs. 

6. develop a personal computer-based simulation program. It will permit "gaming" of the economics of program proposals by adding, deleting, or adjusting both development and delivery components in order to evolve a plan that is educationally effective and within acceptable cost parameters.

7. compile a list of enhancements and support components
that contribute substantially to learning success. 

8. develop a list of model programs and a bibliography. 

Project Organization 
The project is being directed by League Senior Fellow Robert H. McCabe. A panel of individuals experienced in hands-on operation of technology-based or distance learning projects will participate in development of the planning system. Panel members include: Jon Alexiou, Interim President, Miami-Dade Community College, Kendall Campus; Jan Baltzer, C.I.O. and Vice President, The Apollo Group, The University of Phoenix; Barbara Gellman-Danley, Vice President, Institutional Advancement and Technology, Monroe Community College; Rich Gross, Kirkwood Community College; Pamela Quinn, Vice President, LeCroy Center of Telecommunications, Dallas County Community College District; Carol A. Twigg, Vice President, EDUCOM; K. C. Hundere, Glendale Community College.

To be successful, the system must be usable by a variety of institutions with an unlimited array of educational delivery plans. The objective is to complete the project by April 1997.

The project will benefit from as much involvement and input as possible. Individuals who are interested in becoming involved should contact the author: 

Robert H. McCabe, Senior Fellow 
League for Innovation in the Community College 
1601 S. Miami Avenue 
Miami, FL 33129 
(305) 854-4428 

Originally published in the September 1996 issue of Signals.