Cost Recovery/Revenue Enhancement Strategies

• How is teaching at another college considered Extension work?
• Is money from local fundraisers or donations now required to go to RCE?
• Have those with a current 10% IDR (teaching) appointment covered 10% of their salary value?
• Do you need a Master's or Ph.D. degree to teach an on campus course to generate salary value?
• How does the salary value recovery requirement affect one's relationship with OCPE?
• Do faculty/staff need to adjust program budgets to generate net proceeds?

County Government and Stakeholder Questions

• How will cost recovery/revenue enhancement plans be shared with county government officials? What about key stakeholders?
• What if a county wants some of RCE's cost recovery or tries to offset it with a budget decrease?

Grantsmanship

• Where do you find the time to find grants?

Handling and Placement of Recovered Funds

• Does money now placed in county accounts now have to be placed in Rutgers accounts?
• How do RCE faculty and staff "get credit" for money run through local, non-governmental accounts?

The 10% of Salary Value Recovery Expectation

• How is 10% of salary value calculated? Does it include just salary or salary and fringe benefits?
• What are the incentives to raise 10% of salary value and the consequences of not doing so?
• What are the expectations for staff in the titles of Program Coordinator/Program Associate to recover salary value?
• Can current federal or county government appropriated funds offset or reduce the 10% of salary value expectation?
• Can "excess" funds generated one year be "banked" and used to cover the 10% expectation later?
• Are untenured faculty exempt from the expectation to recover 10% of their salary value?
• How do outlying centers fit into cost recovery/revenue enhancement expectations?
• Are RCE administrators subject to the 10% of salary value recovery expectation?
• If you already exist 100% on soft money, do you need to write additional money into grants?

User Fees and User Fee Calculations

• What is the difference between a normal/basic service and an enhanced level of service?
• Can classes be taught for organizations (e.g., libraries) that can't or won't pay a user fee?
• When can statewide user fees start to be charged?
• What will stop clients from going to other providers once RCE starts charging fees?

Use of Recovered Funds by RCE and Department

• Will the 10% cost recovery that goes to one's department be spent on programs that generated it?
• What will the 25% that goes to RCE and one's department be used for?

Miscellaneous

• Can high staff performers that do exceptional cost recovery transfer to a faculty position?
• Where will RCE development and gift money go?
• What are other Cook/SEBS faculty (non-Extension) doing to generate revenue?
• If faculty and staff receive a donation/gift that goes to the Foundation, can faculty and staff receive credit toward their 10%?

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Cost Recovery/Revenue Enhancement Strategies

How is teaching at another college considered Extension work?
Official teaching of a college class is not considered Extension work, but if within your field of expertise and the RCE mission, the class preparation can assist with Extension roles (e.g., research, professional presentations, or publications). Be cautious about how you are paid for your involvement. Consult with your department chair first.

Is money from local fundraisers or donations now required to go to RCE?
Only if you choose to use money from local fundraisers as part of your 10% of salary value recovery. If you choose to use other methods to satisfy this requirement, then all of the money raised from local fundraisers and donations can remain with local entities. The choice is up to individual faculty/staff members. An example would be a county fair association which would contribute 10% of salary value for faculty and staff who make a major contribution to the success of the fair.

Have those with a current 10% IDR (teaching) appointment covered 10% of their salary value?
Yes. There is no expectation to teach another course to increase the IDR percentage. However, any additional funding that can be generated through grants or other methods would be most welcome.

Do you need a Master's or Ph.D. degree to teach an on campus course to generate salary value?
No, but obviously the preference would be an instructor with a Master's or Ph.D. Decisions about undergraduate instructors are made on a case by case basis and depend on the needs of an academic department and the level of expertise and teaching experience of individual instructors. RCE faculty/staff interested in this option are encouraged to consult their RCE department chair first and then meet with the appropriate academic department chair.

How does the salary value recovery requirement affect one's relationship with OCPE?
RCE faculty and staff are free to negotiate instructional fees for continuing education courses with OCPE just like any other OCPE educational providers.

Do faculty/staff need to adjust program budgets to generate net proceeds?
Not necessarily. However, this can be done as a strategy to recover costs and raise revenue. RCE faculty/staff are encouraged to use the Cost-Recovery Template and be mindful of ALL programmatic costs, including time spent by RCE employees. This must be done in consultation with the Department Chair and consistent within the department.

County Government and Stakeholder Questions

How will cost recovery/revenue enhancement plans be shared with county government officials? What about key stakeholders?
The subject of cost recovery/revenue enhancement is being discussed at all annual county stakeholder meetings. In many counties, freeholders and/or county administrators are among those attending. In addition, CEDHs have an opportunity to discuss cost recovery efforts, as appropriate, at annual county budget reviews. The NJAES Board of Managers has been kept well informed of the progress of the RETF and two of its members sit on the RETF. Individual RCE faculty and staff are encouraged to positively discuss cost recovery efforts, as well as ongoing budgetary challenges, with key constituents.

What if a county wants some of RCE's cost recovery or tries to offset it with a budget decrease?
A CEDH would need to consult with Extension Administration on a case-by-case basis. Any conversations in this regard should be steered in the direction of identifying specific legitimate expenses that might be offset (e.g., room rental) rather than an RCE office's budget as a whole.

Grantsmanship

Where do you find the time to find grants?
Like any aspect of Extension work, you need to block out time for it. Note the deadline date for the grant and work backwards to create a realistic time schedule to read the grant guidelines and develop various sections (e.g., project objectives, grant budget). Also be sure to allow time to get required signatures. Set aside several consecutive hours of writing time in each time block to maximize your performance. Create templates for frequent grant sections (e.g., RCE description and mission statement) so you can cut and paste them in future grant proposals. Also cut and paste from your previous documents such as journal articles or program impact statements.

Handling and Placement of Recovered Funds

Does money now placed in county accounts now have to be placed in Rutgers accounts?
Not necessarily. Develop a "holding account" method that works for you (e.g., county Board of Ag account, county sundry account, RU sundry account). The expectation is that, once every state fiscal year (July 1 to the following June 30), a check(s) would be cut, or funds transferred, to RCE for 10% of the salary value of each employee or, better still, all of the employees (does not include clerical/support/paraprofessional staff) in an RCE county office.

How do RCE faculty and staff "get credit" for money run through local, non-governmental accounts?
The 10% expected can be met by sending a local check for 10% of each faculty/staff member's salary value to RCE once every state fiscal year. If faculty/staff in a county office have a "banner year" for fundraising, they can send 10% in the current year and leave the balance for the following years' 10% salary recovery (in a county discretionary account). Payment should be coordinated by the CEDH or Office Manager.

The 10% of Salary Value Recovery Expectation

How is 10% of salary value calculated? Does it include just salary or salary and fringe benefits?
To calculate 10% of your salary value, take your RCE gross income (regardless of how many paychecks it is paid in; e.g., a Rutgers portion and a county portion) and divide by 10 or multiply by .10. Use the Cost Recovery and Revenue Enhancement Planning Worksheet to keep track of your progress. Fringe benefits are not expected to be covered unless required in a grant or similar funding source.

What are the incentives to raise 10% of salary value and the consequences of not doing so?
Many incentives are benefits for the entire RCE organization rather than for specific individuals. If everyone recovers 10% of their salary value, there will be increased funding for RCE programs and to hire new employees. The infrastructure of RCE will be more easily sustained than if no action is taken. Individually, employees may be rewarded for intrapreneurship with FASIP or Pay for Performance (merit pay) salary increments. The consequence of not meeting cost recovery expectations is a weaker RCE.

What are the expectations for staff in the titles of Program Coordinator/Program Associate to recover salary value?
All RCE Program Coordinators and Associates who are involved in program delivery to the general public are expected to recover 10% of salary value. These staff are encouraged to collaborate with county faculty and/or state specialists on grant projects of mutual interest. Program Coordinators have the ability to serve as a PI on a grant; whereas, Program Associates do not.

Can current federal or county government appropriated funds offset or reduce the 10% of salary value expectation?
No, but federal, state and county grant opportunities can be utilized.

Can "excess" funds generated one year be "banked" and used to cover the 10% expectation later?
No, the 10% expectation applies each fiscal year (July 1 through June 30).

Are untenured faculty exempt from the expectation to recover 10% of their salary value?
No. All RCE faculty are involved in program delivery and, hence, expected to generate 10% of salary value annually. It is helpful to think of the salary recovery expectation as enhancing- not competing with- tenure requirements. Many strategies suggested for salary recovery, such as undergraduate teaching, grants, and corporate donations for high-profile projects, should be viewed favorably by reviewers.

How do outlying centers fit into cost recovery/revenue enhancement expectations?
RCE faculty at outlying centers have the same expectation to recover 10% of salary value as everyone else. This may require reallocating money received from corporate or commodity group donors that was previously kept entirely by the center. Faculty can use any number of strategies to recover their 10%.

Are RCE administrators subject to the 10% of salary value recovery expectation?
Yes.

If you already exist 100% on soft money, do you need to write additional money into grants?
No, you have more than exceeded the 10% salary recovery expectation.

User Fees and User Fee Calculations

What is the difference between a normal/basic service and an enhanced level of service?
As noted in Guiding Principle #6 (25k PDF) and page 8 of the RETF report, base level services include phone, written, or electronic correspondence on questions of a general nature or an initial visit or consultation. Services that require detailed reporting and/or consultations are enhanced. For example, answering a school nurse's question is a basic service. Developing a school wellness policy is an enhanced service. Similarly, helping a grower with a pesticide question is a basic service. Developing a nutrient management plan is an enhanced service where it would be appropriate to charge a user fee.

Can classes be taught for organizations (e.g., libraries) that can't or won't pay a user fee?
It is not expected that every class taught for other organizations will be done for a fee. The decision to teach a class for a particular group is up to individual faculty/staff members. It is important to be aware of resources that other organizations may have that have not been tapped into. Key criteria to use in making this decision are whether the class topic fits RCE's mission areas and the number of expected attendees. Also, the need for local goodwill and whether someone has other ways to raise 10% of salary value should be taken into account.

When can statewide user fees start to be charged?
Each RCE department has been charged with developing user fees appropriate to its program delivery methods no later than July 1, 2007. However, as soon as a user fee has been determined, a department may choose to implement it and start collecting revenue.

What will stop clients from going to other providers once RCE starts charging fees?
Absolutely nothing, as has always been the case. RCE clientele are free to seek information and assistance from whatever source they so desire.

Use of Recovered Funds by RCE and Department

Will the 10% cost recovery that goes to one's department be spent on programs that generated it?
Not necessarily. Departmental funds will be used for discretionary general programmatic support. Decisions to spend departmental funds will be made by individual RCE department chairs.

What will the 25% that goes to RCE and one's department be used for?
To maintain and/or enhance the infrastructure of RCE and for department programmatic priorities at the discretion of the department chair. Examples such as, untenured faculty, travel, marketing and promotion, curriculum development. etc.

Miscellaneous

Can high staff performers that do exceptional cost recovery transfer to a faculty position?
No. There is no such thing as a lateral transfer from a staff position to a faculty position. The only way that an RCE staff member can obtain a faculty position is if a position becomes available and is posted by Rutgers University and they apply and compete successfully during the interview process.

Where will RCE development and gift money go?
Gifts to RCE will be allocated according to the selection that is made by the donor on the RCE donor card. Gifts can be used to support a specific programmatic initiative (e.g., health and wellness programs, Master Gardener program) or unrestricted for RCE's area of greatest need as determined by RCE administration.

What are other Cook/SEBS faculty (non-Extension) doing to generate revenue?
There is no current counterpart to the RETF or salary value generation expectation for non-Extension faculty at SEBS. About 98% of non-Extension faculty have 10-month appointments, their administrative processing fees are on grants, and most discipline departments require faculty to pay operating costs (i.e. phones, xeroxing, etc.) However, there have been dramatic staff reductions and operating expense cuts.

If faculty and staff receive a donation/gift that goes to the Foundation, can faculty and staff receive credit toward their 10%?
Yes, gift/donation money through the Foundation can be credited toward the 10%.