Delta Cost Definitions

Methodology, Definitions, Notes, & Sources

Delta Cost: Education and Related (E & R) Expenses

Methodology

Education and related (E&R) expenses include direct costs of instruction and student services plus a portion of indirect costs such as academic support (libraries, academic computing, course and curriculum development); institutional support (administrative, legal, external relations); and operations and maintenance (O&M) (service and maintenance to grounds and facilities, utilities, property insurance). The methodology was developed by the Delta Project on Postsecondary Education Costs, Productivity, and Accountability. This cost data is presented with benchmarking comparisons to statistically similar institutions (baseline, each campus's Baseline Comparison Group). Read more about Baseline Comparison Groups and benchmarking.

Formula for Calculating E&R Expenses

E & R = (Instruction + Student Services) + (Instruction + Student Services) x (Academic Support + Institutional Support + O&M)
(Instruction + Student Services
+ Research + Public Service)

To review definitions for the formula elements above, please go to page 21 of the Delta Project’s 2011 Trends in College Spending report.

Education and Related Expenses per Degree

E & R expenses are divided by degrees to determine the cost (to the institution) per degree. Degrees include baccalaureate, master’s, doctoral, and first-professional level degrees. Certificates have been excluded, and only first majors are included.

Education and Related Expenses per Full-Time Equivalency (FTE) Student

E&R expenses are divided by fall FTE student enrollment (IPEDS).

Notes

Because expenditures could not be separated between the community college and the four-year university, it was not possible to complete this analysis for UT Brownsville. However, if you combined all expenses and all awards (certificates, associates, bachelor’s, and graduate), it cost just over $40,000 to produce an award in 2009.

The UT Brownsville and UT Pan American campuses closed at the end of AY 2015. UT Rio Grande Valley began enrolling students in Fall 2015.

Sources

IPEDS

Delta Project on Postsecondary Education Costs, Productivity, and Accountability

More on this Topic

One Pager - The Delta Cost Project: Cost per Degree

UT System Research Brief: Productivity and Efficiency, February 2011