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Texas Kills Its TeleCampus

April 9, 2010

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The University of Texas System announced Thursday that it would shutter its pioneering UT TeleCampus, laying off 23 employees and reconfiguring the online education entity into a smaller operation within the system's central office.

You'd be forgiven for not having noticed that rather stunning development, though, if you glanced only casually at the university press release announcing the news. Its headline was "UT Institutions Use Distance Education to Teach More Students, Improve Graduation Rates," and the news release focused on how the university's various campuses had developed their own distance education expertise that, with support from the as-yet-to-be-defined smaller office, would be allowed to flower.

"Over the last 12 years, the TeleCampus has been successful in helping the campuses develop and administer online courses," said Anthony de Bruyn, director of public affairs for the Texas system. "As a result, their mission is complete."

The idea that online education at the University of Texas (or at least some of its campuses) has developed to the point that a centralized driver like the UT TeleCampus is no longer necessary is certainly feasible, said Richard Garrett, who analyzes online learning for Eduventures, a research and consulting firm.

In many ways, such a change -- which Garrett characterized as the first of its kind -- would be evidence of maturation, and a logical evolution, he said. "It's reasonable to begin to expect structural changes like this, where the more successful that online becomes, the less it makes sense to have separate structures to support it," said Garrett.

Indeed, that is largely how Texas officials portray the TeleCampus, which Russ Poulin, associate director of WCET, a cooperative focused on the use of technology in higher education, described as "a leader and exemplar for many other consortia in terms of some of the services they were offering."

Michael K. Moore, senior vice provost at the university's Arlington campus, said that the TeleCampus played a huge role in stimulating the embrace and use of distance education by several of the system's campuses, including his own (though Arlington started its own online program in 1997, a year before the launch of the TeleCampus). Enrollments through the TeleCampus have risen steadily from 5,688 in 2001-2 to 10,813 in 2005-6 to 16,062 in 2008-9.

But "at this point, many of the campuses have developed their own capacity to develop courses," in many ways creating redundancy with the separate online operation, Moore said. The TeleCampus now administers 250 online courses, while UT's campuses themselves administer 2,400, de Bruyn said.

Redundancy that may be merely undesirable in good times can become completely unacceptable when budgets tighten -- and it seems clear that money played a role in the TeleCampus's hastened demise, despite the absence of any mention of money (let alone the layoffs) in the university's public statements about Thursday's decision.

The TeleCampus has long funded its operations through a mix of fees (based on enrollments) from the campuses that used its services and an annual subsidy from the UT System's Available University Fund; in the 2008 fiscal year, it received about $1.9 million from the central fund, roughly $800,000 from institutional fees, and $270,000 in other revenue. About two years ago, system officials told the TeleCampus that it would have to wean itself from the Available University Fund money by 2012, and after closing the gap somewhat through budget cuts in 2009, the TeleCampus crafted a plan to significantly increase what it charged its campus users.

That proposal led campuses like Arlington to reconsider the value of what they were getting from what Moore semi-jokingly called the "tax" they pay to the TeleCampus. Arlington -- with UT-Permian Basin, one of the two heaviest deliverers of online education -- would have seen its annual payment rise from about $140,000 to more than $500,000, he said. "In our case, that was causing us to reconsider our level of involvement" in the TeleCampus, he said. "It started to be a question of whether we could do it ourselves more efficiently."

Like several people interviewed for this article, Moore said that he was taken by surprise by Thursday's announcement; he, like others, was under the impression that officials with the TeleCampus would have more time to develop a viable way to make up for the full evaporation, in 2012, of the system's financial subsidy.

It's not clear exactly what happened to speed up the university's timeline; Gov. Rick Perry's February mandate that the UT System and other state agencies plan to return 5 percent of their state funds for the current biennium may well have played a role.

Officials affiliated with the TeleCampus could not be reached for comment, although one confirmed (as de Bruyn did) that all 23 of its employees would be laid off as of Aug. 31, the end of the system's fiscal year. De Bruyn acknowledged that there was an "efficiency aspect" of the decision to shutter the TeleCampus, in addition to the more upbeat reasons cited in the news release, but he said an estimate of the projected savings from replacing the organization with a smaller office in the central administration "is not firm yet."

Moore of UT-Arlington said he too believed that his campus would probably see some savings through elimination of "redundancy"; some of the fees it pays to the TeleCampus, for instance, cover Blackboard licenses that Arlington itself has, too.

But he also acknowledged that "there are going to be some challenges" because some of the services that the TeleCampus provides to campuses like Arlington will be difficult and expensive to replicate. The online campus, for instance, ensures that students from one campus can enroll in another's distance programs without any difficulties with financial aid or other administrative issues. While a small staff in the system office might be able to smooth over those and other problems in the few months before the TeleCampus officials disappears, Moore said, "there's a lot of heavy lifting to be done."

Not until UT establishes a new structure that fills the roles that the TeleCampus played -- or until the university fails to do so -- will it be fully clear whether the decision to kill off the separate unit was well-timed or premature, said Garrett of Eduventures.

"Moving from a centralized model to a decentralized model may be the logical outcome of a successful organization like the UT TeleCampus, making it a victim of its own success," he said. "But you can't move from a centralized to a decentralized model without due attention to what that actually means -- making sure that there's coordination among the campuses, that there's a continuing focus on improvement, that there continues to be encouragement to the campuses. Those kinds of things don't just happen naturally, and just as much care and attention needs to be given to this transition" as was given to building the TeleCampus in the first place if Texas is going to build on its legacy, Garrett said.

He added: "The question we can't answer yet is whether the timing is right because the TeleCampus has truly run its course, or is it primarily a need to cut costs now and we'll see over time whether enough thought has been given to making a new system successful."

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Comments on Texas Kills Its TeleCampus

  • Bursting the bubble?
  • Posted by Hank at Retired, PAC 10 on April 9, 2010 at 10:15am EDT
  • Not at Texas myself, and there may well be a funding problem in the present moment, but I have always thought universities moved into distance education in the first place in pursuit of a pot of gold, not for the pedagogical challenges or good deeds. It seems to me that this is of late a common development, in that they find distance education is not infinitely scalable and scramble for some reason to drop such programs. It seems that faculty and administrators from a butts-in-seats legacy have a very difficult time doing distance education. I don't mean to tout distance education particularly, just that the expectations have often been unrealistic and so developments like this seem inevitable.

  • Redundancy, Success, and the UT TeleCampus
  • Posted by Russ Poulin , Associate Director at WCET on April 9, 2010 at 10:30am EDT
  • The comments about 'redundancy' are interesting. There is worry about the TeleCampus having services that are redundant. As a person who studies consortia, I know that consortia have to be sure to offer services that add value and do not duplicate services already available by campuses. But not all campuses are equal. A service available at a larger campus might not be available at the smaller ones and they need the extra assistance. There is no discussion about the redundancy of effort in each campus having to reproduce each of these services on their own-with highly varying quality. What is the real cost of that redundancy? It will be buried in the campus ledgers.

    The press release talks about the mission being accomplished. Ending a program because or its success without an apparent plan of what to do next is a bit unusual. Let's hope they do have a plan for going forward.
    Russ Poulin
    Associate Director, WCET

  • Thanks, UTTC
  • Posted by skuiks , Professor at UT on April 9, 2010 at 11:45am EDT
  • First, I just want to say "Thank you" for the excellent services that UTTC has provided over the years to the UT institutions. Second, at a time when the Texas governor is asking for a 5% cut from all institutions, a shared service is really a money saver for all participants. Now, the smaller UT institutions will be asked to cut 5% and at the same time come up with additional resources to do the job that UTTC did so well for us. In a sense the UT System Administrative Offices in Austin found their 5% savings by passing on costs to the smaller less well funded schools.

  • skuiks is exactly right
  • Posted by suramom , Senior Lecturer at UTD on April 9, 2010 at 12:45pm EDT
  • skuilks is exactly right. We will be adding costs to replace something that worked well, and repeating the costs again in every department. Moreover the expertise they had will disappear. But it will disappear from one budget line and those adding to their duties won't show up immediately.
    Meanwhile the football program is sucking millions out of the system, and we get to cut our budgets to accommodate that.

  • Posted by richard miller on April 9, 2010 at 1:00pm EDT
  • Success is failure?

  • Thank you
  • Posted by Lori Williams , Center for Student Success at Walden University on April 9, 2010 at 2:15pm EDT
  • I want to add my thanks to the others here in the comments to the leaders past and present at UT Telecampus who so graciously shared their learning and processes over the years through presentations at conferences like the University Continuing Education Association and Sloan-C. We've learned a lot from your pioneering efforts.

  • Unfortunate, but...
  • Posted by Richard Hezel , President & CEO at Hezel Associates, LLC on April 10, 2010 at 7:00am EDT
  • Having had a subsidiary consulting role in the early development of UTTC, it's disappointing to see it close--all the more so because of the good UTTC people who have offered leadership nationally to other, similar efforts. The swings between centralization and decentralization in distance and continuing education are trends we've observed over the generations. In distance ed, decentralization was already under way within the University of Maine and other states, just as many state "virtual universities" (KY, CA, AZ, TX, NY) were getting under way. What quickly became clear was that the institutions and their faculties wanted more control, especially over curriculum developed in their names and over money. In the long run, centralized state higher education services have the highest likelihood of success where they fill the (changing) needs (e.g., technology, marketing) of campuses at perceived reasonable costs and where they energize the development of sustainable programs on the campuses. UTTC will be remembered for having provided a good model for such energizing.

  • Where Is The Honor?
  • Posted by CLL , Owner at Small Business on April 13, 2010 at 12:00pm EDT
  • Why has no one mentioned that several of the 23 employees laid off with UT TeleCampus were going to retire with UT? Several were there for 10--20 years. NO one received a compensation package/severance. Just work till August 31, 2010, then leave; being discarded like an old shoe! Where is the honor in that UT? These people love UT and many attend all their home football/basketball games. They are devoted to UT/the institution of higher learning. Several are graduates of UT. It is highly unlikely in today's economy to secure a comparable job. What will be done to help these "lifer" employees?

  • No more economies of scale
  • Posted by Mary Lee , Past TxDLA President on April 21, 2010 at 11:30pm EDT
  • This move is not likely linked to the request for a 5% reduction from State Legislators. That's been a standing request for several years, now. One has to wonder: "What's the rest of the story".

    Elimination of the Available University Fund (formerly the PUF fund, I suppose) moneys could have crippled the TeleCampus by 2012. No doubt, the AUF has been losing money like any other fund, especially as Texas oil fields have become depleted. However, a longer-term approach to reducing dependency on those funds could be approached in such a manner as to actually improve the performance of the TeleCampus and the System's smaller campuses.

    Actual "restructuring" would need to be accomplished by examining and eliminating any of those "redundancies" mentioned by System spokespersons. Restructuring does not begin by eliminating important functions performed by important persons. It begins by eliminating cost redundancies such as software licensing fees.

    At a time when Texas is, once again, facing tough times ahead, the ripple-effect of eliminating those 23 jobs, the services provided especially to smaller campuses, and services provided to students statewide is likely to end-up costing the Texas economy a lot more jobs and much more money than the retirement packages of some senior employees.

  • What's the centralized plan for marketing?
  • Posted by Jim Fong , Educational Marketing Consultant at Fong Strategy on May 18, 2010 at 8:30pm EDT
  • Distance education is far from mature. Learning on the Internet may be at a "comfortable" stage, so it feels it feels premature that the innovation function of serving adult students and others is being centralized into the colleges and academic units. I also wonder whether the marketing and student experience aspects of this have been sufficiently planned through. As the article suggests,over 16,000 students were being served and chose to go in through the UTTC door, as opposed to redundant doors supposedly already at UT. Giving UT the benefit of doubt, I will assume that they addressed the following:

    - Internal competition for students. I've seen it at many other institutions where one college, say the school of nursing, is competing for the same student the business school is marketing to. I've seen one state with its many campuses have one campus with its online M.B.A. compete against its sister campus' online M.B.A.

    - Developing marketing expertise at many locations, as opposed to one serving the 16,000+. Does each college or campus have an unduplicated marketing team ready to chart the course of e-marketing, i.e. social network marketing, search engine optimization, writing for the web, strategic positioning and market research? Many institutions can't even get e-mail marketing right! It's a competitive market out there ... will each campus be able to effectively address the competition? Maybe they will be even better positioned, who knows for sure? It's hard enough to attract true marketing talent to education ... does UT now have to do it ten-fold?

    Centralizing marketing for online education can work, as it has with UMass Online and Penn State's World Campus. My experience seems to suggest that having many smaller marketing units results in tactical marketing and achieving true strategic marketing is difficult. If strategic marketing is to be accomplished, then it most likely will cost more in a decentralized model.

    A totally different topic would be the student experience. Will the decentralized model work better. I've secret shopped over a hundred institutions and seven out of ten fail. Will the UT experience be better than the UTTC experience.

    Good luck UT. Regardless of the outcome five years from now, my guess is the world may never truly know if this rather bold decision was a good one, as if it is successful, you'll say good things. If the enrollments are down, I doubt it will ever be reported or they won't be able to separated out in a true apples to apples comparison. If enrollments are up, I wonder whether you will be able to calculate the costs of doing so and whether this new venture was more profitable or less costly.

  • UT
  • Posted by Satira Ellis , Lecturer at E-Learning Faculty on June 22, 2010 at 2:15pm EDT
  • My biggest concern about this closing is faculty and student support. It appears that UT has reached a comfortable level in their distance education delivery, but e-learning is a fairly new discipline and is by no means static. I really hope the university will have in place staff to support faculty and train new ones in development in the pedagogical field that goes along with e-learning; and I hope that students will receive sufficient support so that UT will retain it's high standards.

  • Duplication or Duplicity
  • Posted by Kevin Handy , Instructional Design Professional at Digitalingo on July 10, 2010 at 6:45pm EDT
  • The cynic in me wonders whether or not Texas universities don't build ivory towers at the expense of taxpayers. Distance education has the tremendous potential to provide standardized courses and learning object reuse in an increasingly expensive educational environment. Instead of using the same courses - my sense from this article - is that each institution creates its own wheel, maintains the wheel and turns the wheel itself. This bothers me at so many levels. I have looked at the price of these online courses - and frankly I attend a completely online private school. I would love to attend a state supported school, but aside from the admissions requirements for graduate level programs, it irks me these institutions still live in the proverbial clouds. Courses offered at their convenience on their time line. Little wonder the costs keep increasing, we keep building more physical campuses and these state supported schools face no competition. I see bloated waste in these independent entities with all that autonomy. If I were in charge believe me - some of these institutions would not exist the way they do now. We need nothing short of revolution at Texas colleges and universities. Until then I would say we need to start writing our legislators until the next biennial so they can fix some of these perceived issues.
    Kevin H, Ed D candidate, Organizational Leadership, Argosy University Online