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OCC explains chargebacks and enrollment trends as outside students increase
Summary
Presenters told the committee chargebacks—tuition revenue from students whose home county pays—are formulaic and have increased as OCC draws more out-of-county students; staff said the financial effect depends on program, with some programs (nursing) operating at a loss regardless of residency.
Committee members asked how increased attendance by out-of-county students affects OCC finances. CFO and staff explained tuition chargebacks are a formula-based reimbursement from counties where students reside when those students attend OCC, and that higher chargebacks correspond to greater out-of-county enrollment.
"The chargebacks that OCC is getting is filling that gap," the CFO said, explaining that OCC receives the tuition and chargeback revenue that helps 'make whole' certain programs. Staff cautioned that the net effect depends on the program; they said programs such as nursing do not 'pay for themselves' and can operate at a deficit regardless of whether students are county residents.
Presenters framed out-of-county enrollment as generally positive when county residents still have access to seats, but said the subsidy math varies by program and staff offered to provide more granular figures on program-level subsidy and chargeback amounts.
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