I have updated
some of the key numbers that support the PSA model. I decided to post my
calculation document in raw form. The numbers speak for themselves, but I’ll
provide some elaboration.
[NOTE: Here are links to financial analyses of the Canadian (2022) and Australian (2022) higher education systems.]
All
calculations are based on the 2016-17 academic year and are
in constant 2017-18 USD. Data has been averaged across 2 and 4-year public
institutions and is presented in full time equivalent (FTE) measures. The data
sources are the National Center for Education Statistics (NCES) and the College
Board (CB). Calculations do not include weighting for 2-year vs. 4-year
institutions or undergraduate vs. graduate level of study.
Two notable calculations:
a) Maintaining the current number of FTEF
and an annual practice expense of $200,000, the PSA model can provide HE for
34% of the total revenue in the HEI model.
b) At
34% of total revenue, PSA can provide not only a
sustainable, respectable living for all FTEF, but tuition-free HE to 11,239,067
FTESs for a 10% increase in FTESs.
As always, I invite
feedback and collaboration.
Full Time Equivalents
|
Full Time
Equivalents
|
Student Ratio
|
|
Faculty (FTEF)
|
680,510
|
15.5
|
|
Graduate Assistants (FTEGA)
|
98,599
|
107.2
|
|
Other Staff (FTEOS)
|
1,162,004
|
9.1
|
|
Students (FTES)
|
10,565,751
|
N/A
|
[FTEF entails
instruction, research and public service. All graduate assistants are
considered part time. Figures are for 2 and 4-year public HEIs combined.
Source: Snyder, et al., 2019, pg. 262 and 283.]
PSA sample
practice expenses
|
Amount
|
Item
|
|
$10,000
|
Salary of academic
practitioner (gross)
|
|
$3200
|
Other
salaries, wages, and commissions (teaching assistant)
|
|
$2000
|
Rent (office and lecture
services, facilities, and equipment)
|
|
$200
|
Advertising
|
|
$100
|
Printing and shipping
|
|
$200
|
Office
supplies and equipment (computer, phone, business cards, etc.)
|
|
$200
|
Website hosting,
maintenance, internet fees
|
|
$50
|
General
business insurance
|
|
$150
|
Health insurance
|
|
$200
|
Retirement
|
|
$500
|
Society membership and
other professional fees (accountant, professional development courses, etc.)
|
|
$16,800
|
Total
|
Practice expenses
are based on professional prerogative and so in reality will display
considerable variety. These numbers - $16,800/month or $201,600/annum - are for
a solo practice with office assistance and facilities, face-to-face teaching
facilities, and a teaching/graduate assistant. These numbers are consistent
across cities in North America. It is also important to note that under these
calculations the mean, median and mode of income distribution are the same,
with a range of zero – so, every academic earns the identified practice
scenario income.
PSA
practice funded by select current HEI model sources
|
Source
|
Per
FTES
|
Total
FTES
|
Per
FTEF
|
|
Revenue
|
|
Total
Revenue
|
$37,797
|
$399,353,690,547
|
$586,844
|
|
Appropriations
& Non-operating Grants
|
$10,523
|
$111,183,397,773
|
$168,382
|
|
Tuition
& Other Fees
|
$7,666
|
$80,997,047,166
|
$119,024
|
|
Expense
|
|
Instructional
|
$10,832
|
$114,448,214,832
|
$168,120
|
|
Instructional,
Research, Public Service, and Academic Support
|
$18,959
|
$200,316,073,209
|
$294,361
|
|
Instructional,
Research, Public Service, Academic and Student Support
|
$21,036
|
$222,261,138,036
|
$326,609
|
[Formula used in
calculations: (Source per FTES) x (Total FTES) ÷ (Total FTEF) = Per FTEF
(Practice Funding/Revenue). Source: Snyder, et al., 2019, pg.386, 387, 394.]
With this
sort of financial liberation in higher education amazing things are possible. Maintaining
the total revenue per FTES and a practice expense pf $200,000/annum, the number
of faculty could increase by 66% or 449,143 FTEF – or as PSA prefers, FTE Academics.
With an academic-student ratio of 1:15.5 that would also mean a 66% or 6,961,719
increase in FTES. Graduate assistance would increase by 1145% or 1,031,054
FTEGA. The flexibility in PSA finance also means there is room for more liberal
student expansion and retention numbers, along with tuition and expense-free
HE.