Describes the costs for an online or blended learning program. Gives two case studies as examples and the result.

1. T he Bottom Line:
Financing Online/Blended
Pr og r ams
Dr. Rob Darrow
Lead 3.0 – San Mateo
April 2012
Handout: Online Cost Sheet

2. Introductions
 Me
 You

3. A Few Definitions
 Online Learning
 70% or more time taught and learned
online
 Blended Learning
 Using online learning tools to teach
students where some student time is
flexible
 Computer Assisted vs. Teacher Led

4. Online/Blended Learning
Programs
Computer Assisted Teacher Lead
 Computer assessment and  Teacher places students
computer placed  Teacher at end of every course
 Complete lesson (teacher in  Students advance based on
a box) teacher assessment (some may
be multiple choice)
 Multiple choice test (Pass,
 Online interaction (e.g.
continue; Fail, repeat)
discussion boards,
 Adult facilitated synchronous online
(credentialed or classified) lessons/office hours)
 Education 2020  One teacher every course
 K-12, Inc.
 Plato
 Florida Virtual School
 Apex Learning  Connections Academy
Which costs less?

5. Who Has…
 A Blended Learning Program?
 An Online Learning Program
 (students taking courses online with
teachers not in the same school)

6. In California…how do we
fund schools? (Finance 101)
 ADA – Average Daily Attendance
 1 student in school 1 day = 1 ADA
(or FTE).
 Cannot split ADA
 Independent Study
 Grants / Fees / Fund Raisers /
Student Pays

7. California
Finance
 ADA (“seat time” - 240
minutes each day)
 Independent Study (student
gets hours based on work
and physically meets a
teacher once a week).
 Charter (ADA or Ind Study)
1 student in school 1 day = 1 ADA.

8. Two California
School Districts
 Kings Canyon  Clovis Unified
Unified  Cal Online
 Dunlap Leadership (2000-2005)
Academy - 2008  (Students: 37,000;
 (Students: 9700; Teachers: 1752)
Teachers: 439)
 www.dunlapleadershipacademy.com/

9. Two California
School Districts
Kings Canyon Unified Clovis Unified
Full time online student Part time online student
Students may attend (no more than one online
computer lab course)
weekly/daily Face to face training
Monthly check in with Online check in with
teacher face-to-face teacher
One teacher facilitates One teacher per course
all courses

10. Clovis Unified
Kings Canyon USD

11. Kings Canyon
Unified
 Dunlap…the one area of the district
without a high school.
 Where’s Dunlap? Population: 131

12. Dunlap Leadership
Academy
 Why?
Kings Canyon
USD

13. Financing: Dunlap
Leadership
Academy

14. California Finance
ADA Differences
Per student, per year
 Kings Canyon - $6,063
 Clovis Unified – $5,983
 Modesto City - $5,839
 Sylvan– $5,551
 Patterson - $5,290
 Charters - $6,600 (9-12)
Ed. Data Figures, Unrestricted ADA, 2009-10

15. Dunlap Leadership
Academy
30 students - ADA
 30 students X $6100 = $183,000
per year.
 Special program funding - $650
per student (or another $20,000)
 Total Income: $203,000.
 Round to $200,000

16. See Handout:
Calculating Costs

17. Dunlap Leadership
Academy Course
Content
 Provided by Advanced Academics.
Cost: $400 per student per course.
 5 courses per student.
 $400 X 30 students X 5 courses =
$60,000.

18. Course Management
System (Moodle, Bb)
 Included in “content” price

19. Other Online Tools
 Use district student information
system (no cost)
 No additional software used

20. Equipment Costs
Computer Lab
 Cost for
hardware (30
computers):
$30,000.

21. Administrative Costs
 ($50,000) Principal – Part time (shared
with school across the street)
 ($40,000) Secretary/lab aide and
campus aide
 8:00-2:00 each day – 30 hours per week.
 ($10,000) Custodian (part time –
shared with school across the street).
 Total Personnel Cost: $100,000

22. Dunlap Leadership
Academy Supplies
 Supplies = $5,000.

23. Teacher Cost
 Included in “content cost”

24. Special Education
 “Built in” to the program
Now, Add it up!

25. Dunlap Leadership
Academy Income and
Expenses
 Income by ADA: $200,000.
 Personnel: $100,000 (no hired dist
teachers)
 Equipment: $40,000
 Content and Teachers: $60,000
 Supplies: $5,000
 Expense Total: $205,000
 Income – Expenses = - ($5,000)

26. Asst. Supt. Business
Sees:
Cost Per Student
Cost = $200,000
 30 students = $6600 per student.
 50 students = $4000 per student.
 120 students = $2000

27. Clovis Unified
 Unified in 1960:
one high school / intermediate school,
4 elementary schools

28. Clovis Unified
 District motto: “Be the best you can in
mind, body and spirit.”
 In 2008: 28,000 students – 12,000 in
high school.
 6 high schools, 5 intermediate schools
and 32 elementary schools.

29. Clovis Unified
Cal Online
 Part time students – may not take
more than one online course
 4 total courses (Bio, Alg 1, Eng9,
Government/Economics)
 First classes: June 2001

30. Clovis Unified
Cal Online ADA = 0
 Budget: $250,000
 Funded from 2000-2006 by
12 different grants and
funds over 6 years – no
ADA or General Fund.

31. Financing: Cal Online

32. Course Content
 Licensed from Florida Virtual School.
 $20,000 per year
 Then, created own. One time cost for
teacher development: $5,000

33. Course Management
 Moodle
 Cost: (0 – used district server; except
the cost of the tech person)
 Full time online tech assistant
monitored and organized courses into
Moodle

34. Other Online Tools
 District Student Information System
 Elluminate Online Conferencing
System: $5,000

35. Equipment Costs
 Materials:
(textbooks, lab kits, etc.): $6,000
 Teacher cell phones: $4,000
Total: $10,000

36. Administrative Costs
 Full time Coordinator, and
online tech assistant
 TOTAL: $120,000

37. Teacher Costs
 District teachers
 4 part time teachers – ($15,000 each)
 Total: $60,000

38. Special Education
 Provided by district (no direct cost)
 Consult and observe
Now, Add it up!

39. Add It Up
 Income by ADA: -0-.
 Content: $20,000
 Other Online Tools: $5,000
 Personnel: $180,000 (Admin and Tchrs)
 Equipment: $10,000
 Expense Total: $215,000
 Income – Expenses = +$45,000

40. Asst. Supt. Business
 100 students enrolled in 4
courses.
 $215,000 Costs
 Divided out: $2150 per student
(in addition to the face-to-face
school costs)

41. Clovis Unified - Cal Online
Ended in 2006
 No finance model worked for part time
students

42. Create Your Own
Finance Plan
 Fill in your “estimated” cost chart.

43. 2020 Visions Report
(2006)
 $1 mil to start up an online school
Bellsouth Foundation (2006). Anderson,
A.B., Augenblick, J., and DeCesare, D., and
Conrad, J.

44. Online School
Finance Challenges
 Economy of scale: Need money or
students
 With full complement of courses, how
do you reduce costs?
 Contract content out?
 Teachers?
 Develop own content?
 Get more students?

45. Lessons Learned:
Via research and
experience
 Get all district admin on board
 Talk with all “stakeholder” groups
in establishing your online school
(counselors, special education,
etc.)
 Identify budget income for 3 years
 Lack of money = no program

46. Resources
 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/onlineeduc
 Online Learning Research about Costs -
http://www.onlinelearningvisions.com/research

47. Contact
Rob @ OnlineLearningVisions.com
Web:
www.OnlineLearningVisions.com
Rob’s Wiki:
http://robdarrow.wikispaces.com