Experiences in Implementing a Statewide Partial Cost Recovery Program Darrell Dromgoole April 2013.

Experiences in Implementing a

Statewide Partial Cost Recovery Program

Darrell DromgooleApril 2013

Rationale For PCR

• Economic Conditions • Flat to declining state, federal, and

local appropriations

• Increasing cost of doing business

• Competitive position of faculty and staff

Position Impactsbetween 2010 and 2012

Guiding Principles PartialCost Recovery

•Consistency with agency mission

•Sustain program delivery capacity

•Consideration of impacts on local support

•Program priorities continue to be driven by strategic planning process

Partial Cost Recovery Fees

•Educational group methods•Minimum $10 up to 10% per participant

•Online courses and Services•15% service fee

•4-H participation fee•$25 annual fee per member

How have We Done?

How Have We Done?

Challenges

Naysayers• “we have always offered programs free of

charge”

• “taxpayers already pay for Extension programs

• “program partners will discontinue support”

• “lose program participation”

• “clientele won’t see the program value”

• “4-H youth participation fee won’t work”

Challenges continued...

Fiscal accountability•Collection and timely processing of funds

•Cash handling

•Best Practices financial resources management

Recommendations for Successful Implementation• Don’t apologize – communicate clearly that

Extension has value• Get early “buy in” from agents, specialists

and other personnel• Communicate, communicate, communicate

to key officials and partners at all levels• Involve chief financial officer to assist with

fiscal processes

Website : http://ExtensionCostRecovery.tamu.edu

Doug Steele – DirectorKyle Smith – Executive Associate DirectorDarrell Dromgoole – Associate Director – County ProgramsPete Gibbs – Associate Director – State ProgramsDonna Alexander – Chief Financial Officer

Additional Resources