Impacts and Their Values in Extension Accountability

1. Impacts and Their Values in Extension Accountability Florida County Extension Directors In-service Training, Gainesville, Florida November 8, 2007 Workshop by: Dr. John G RichardsonDepartment Extension Leader andAgricultural Programs Accountability ManagerCollege of Agriculture and Life Sciences Department of Agricultural and Extension EducationBox 7607 N.C. State University, Raleigh, NC 27695 USAEmail : john_richardson@ncsu.eduPhone : (919) 515-6080Fax: (919) 515-1965

2. Content • Accountability Introduction • Florida Commissioners • An Urgent County Budget Process • Communicating Value Testimonial • Numbers Count • Impacts and Program Measures • Success Stories • Costs and Values • Determining Program Value • Success Stories with Values • Key Valuing Tips • Communicating Program Value • Valuing Workshop (participant discussions) • Success Story Review Nomenclature • Lies and Statistics

3. Introduction • Policy makers want to see viable, tangible program results. • Quantifiable results stay in the public’s mind, but descriptions or qualifications DO NOT. • We need: • Identifiable program impacts, and…. • To place economic values on them!

4. Florida County Commissioners Questions Why fund 4H when we have boys clubs and girls clubs.......... and school programs..... and city programs... Why fund FCS when we have the Health Department and Social Services and Elder care programs and ,,,,,, and .......... (Vergot)

5. Urgent – A NC County Budget Process for FY 05 • What are consequences of eliminating this service? • Should we (the county) be in this business? • How do you plan to enhance the efficiency of this service? [limit to no more than 2 pages placed in bullet form-to be completed in one week]

6. Determining Program Economic Benefit Values Numbers Count! “Whenever some quantification is done—no matter how speculative or limited—the number tends to get into the public domain and the qualifications tend to get forgotten…The number is the thing.” (U.S. Congress Report by the Subcommittee on Oversight and Investigation, 1980, 7, 10)

7. Accountabilityand Success Success Stories Are an Excellent Means for Communicating Impacts ------- They Should Always Convey Impacts, and When Possible, Values

8. Communicating Program Value Success Story: Location: Hoke [Reduced costs] According to the Department of Juvenile Justice, Hoke County is a "target county" because a large number of youth are sent to training school. Between January and May 2004, it has cost the county $25,272 to detain youth. To address the character and decision making skills of youth, Cooperative Extension offers a prevention program called 4­H Life Skills. Cooperative Extension collaborates with Hoke County Schools to offer the program to elementary and middle school students. The program has reached 158 students this year and none of the students who have graduated from the program have been referred to juvenile justice. For each child not referred to juvenile justice, the county saves $72.00 a day and $26,280 a year.

9. Communicating Program Value Testimonial Idaho State Legislator, Tom Trail (2004) stated that … “last year, Cooperative Extension in Idaho was facing a budget cut of at least 2%. In my position as a State Representative in the Idaho Legislature where I serve as Vice Chairman of the Agricultural Committee, we requested any information that Extension may have available to verify and support the public expenditures from the state of Idaho for Extension programs. We were able to obtain information, very much like the success story presented in this paper, which specified very specific and concise benefits to society and in tax payer savings as a result of 4-H programs. In this Idaho case it was very clear that the lower rate of juvenile offenses and drug related problems was a savings to society.  We did get an added $200,000 budget addition for the extension and 4-H programs partially as a result of the information shared with the House and Senate Ag Committee as well as the Joint Appropriation and Finance Committee.  This budget increase was approved, even though it was in a very tight budget year.”

10. First, We Must Recognize Impacts Impact = Learning + Behavior Change + Results • Impact may be expressed as a change in economic value or efficiency, environmental quality, societal or individual well-being.

11. Program Measures Level 7 – End Results Level 6 – Practice Change Level 5 – KASA (Knowledge, Attitude, Skill, Aspiration) Level 4 – Reactions Level 3 – People Involvement Level 2 – Activities Level 1 – Inputs

12. examples ofFour Program Thrusts(to meet local needs) Examples • 4-H youth development • Beef cattle management • Family financial management • Home gardening

13. InputsInputs – time, funds, staff invested Examples • One hundred staff hours are committed. • A bus is secured for a tour • Office, copier, paper, computer are available. • A budget of $2,500 is allocated.

14. ActivitiesActivities – events, activities, programs, sessions offered Examples • 4-H Summer Camp is held July 10-15. • A six-week beef production course is offered. • A home-study course on financial management is presented. • A subscription-based newsletter is offered to interested home gardeners.

15. People InvolvementPeople Involvement – number of participants involved Examples • 200 youth participate in 4-H Summer Camp. • Thirty-two cattle producers attend the beef production management course. • Two hundred food stamp recipients are enrolled in the financial management home study course • 400 people subscribe to home gardener newsletter

16. ReactionsReactions – what participants thought of the program, its organization, its leader etc. Examples • Ninety percent of camp attendees indicate that they will recommend it to others. • Ninety-five percent of course attendees rate the information gained Very Good or Excellent. • Eighty percent of recipients indicate the ease of use of the study materials. • All subscribers indicate satisfaction with the newsletter content and regularity.

17. KASAKASA (Knowledge, Attitudes, Skills, Aspirations)Change Examples • Ninety percent of camp participants gain new understanding of applied leadership and community involvement principles. • Eighty percent of beef producers gain greater appreciation of the value of assuring the availability of mineral supplements to pasture cattle. • Half of thestudy participants indicate gaining new money saving skills. • Eighty percent of subscribers indicate a desire to enhance their approach to after-harvest pest management practices.

18. Practice ChangePractice Change – improved methods of action adopted Examples • Seventy camp participants demonstrate new proactive involvement in school and community enhancement projects. • Fifteen beef producers begin to employ advanced nutrition management programs. • Eighty program participants begin to follow economical food selection practices, and cost comparisons for their interest charges. • Forty percent of subscribers indicate adoption of new BMPs for fallowing their gardens.

19. End ResultsEnd Results – broader outcomes, effects, and benefits resulting from changes in practices Examples • Youth community projects produce $250,000 savings to tax payers. • Eleven Beef producers increase net income by $6,000 per farm. • 80 home study participants reduce their consumer credit interest payments by an average of $200. • 50 subscribers adopt spreading of composted materials that reduce soil erosion, protect water quality and reduce solid waste disposal costs for the County of over $3,000.

20. BRIEF REPORTSWANTED “We want brief, concise reports of accomplishments that cover the main points of : Who’s involved; Problem; What you did; Difference it made; any collaborators; Contact person; and onone page”! (Congressional Aide for former Congresswoman Eva Clayton)

21. Success story structure Problem, Program, People, Partners, Impact, and Conclusion PPPPIC

22. Heart Healthy Program Successful Heart disease is the number 1 killer in Robeson County [Problem]. Cooperative Extension in cooperation with local hospital and Health Dept. [Partners] sponsors quarterly “heart healthy” cooking workshops for the general public. Emphasis is on health recipes and cooking techniques participants can use in their daily lives [Program]. 49 consumers participated in the four workshops [People] . Participants were surveyed several weeks following classes, and 36 indicated they had used class recipes or modified their own recipes to reduce fat, sodium, or sugar. According the JADA, nutrition intervention saves on average $8000 medical costs per patient. Thus, for the small group surveyed there was an estimated total savings of $288,000 [Impact] . Due to interest of participants and program value, workshops will continue quarterly [Conclusion] .

23. Key Tips For Writing Quality Success Stories • Follow the PPPPIC format • Make sure the program IMPACT is presented • Never use ACRONYMS unless meaning is described • Focus on Cooperative Extension’s programs & roles • Place monetary values on impacts if possible • Use Cooperative Extension rather than “I” or “the agent” • Focus on program outcomes rather than activities • Write toward external audiences rather than internal • Accept that others may not know of or understand your programs • Avoid using client names or specialist names • Avoid using lots of numbers and % signs • Describe program as simply as possible • When indicating grants, make sure the program leverage is presented • Name only the key partners rather than everyone • Always check the spelling • Once in a system, review your story for misspellings and truncation • Use Key impact words as appropriate such as job gains, dollars earned/saved, educational improvements/gains, social or natural environment enhancement, etc. Jgr-4-04 Revised 8-07

24. Program Costs and Values

25. Cost Effectiveness Comparisons Extension services are being assessed and compared to alternatives as to level of efficiency and real benefits to clients and society.

26. Accountability NEED TO PROJECT Our VALUE

27. SIMPLIFIED PROGRAM COST ANALYSIS FORM A. Total Salary $38,000 ____divided by 1,600 = $23.75cost per hour (this calculation is based on an annual work time of 2,000 hours with 25% fringe benefits added) B. Overhead, clerical support, and travel = 1 X (A.) = $23.75cost per hour C. Total hours expended for program planning, implementing, evaluating, marketing, etc.________188_____________hours D. Program Cost = A + B ___$47.50___, and multiply by C. 188__, equals: Total Ordinary Program Cost __$8,930___ Plus E. Extraordinary Program costs (if any), (examples include: participant travel such as on tours, temporary labor such as parking attendants, meals, extra supplies, special printing, hired travel such as taxis or airplane tickets, per diem, consultants, and any other items that are over and above ordinary daily operations)__$800__+ ________+________ = Total ___$800______ TOTAL PROGRAM COST (D. + E.) $8,930 + 800 = $9,730 *Quick Cost Calculation = A. $23.75 X 2 = $47.50 X C. 188 = $8,930 + $800 = $9,730 *(plus extraordinary costs, if any) ------------------------------------------------------------------------------------------------- Prepared by John G. Richardson Extension Program Delivery and Accountability Leader

28. HEART HEALTHY PROGRAM(3 professionals involved) 5 hours planning 15 hours shopping/preparation 1 hour room set up 2 hours promoting/advertising 8 hours preparing recipe booklets 15 hours presenting 1 hour evaluating & reporting 47 hours 4 workshops per year = 188 hours total Using a salary of $38,000, the cost per hour = $47.50

29. Heart Healthy Program Successful Heart disease is the number 1 killer in Robeson County [Problem]. Cooperative Extension in cooperation with local hospital and Health Dept. [Partners] sponsors quarterly “heart healthy” cooking workshops for the general public. Emphasis is on health recipes and cooking techniques participants can use in their daily lives [Program]. 49 consumers participated in the four workshops [People]. Participants were surveyed several weeks following classes, and 36 indicated they had used class recipes or modified their own recipes to reduce fat, sodium, or sugar. According the JADA (1996), nutrition intervention saves on average $8000 medical costs per patient. Thus, for the small group surveyed there was an estimated total savings of $288,000 [Impact]. Due to interest of participants and program value, workshops will continue quarterly [Conclusion]. Program Cost Effectiveness Program Value = $288,000 Program Cost = $9,730 Net Program Benefit = $278,270 Cost-Benefit Ratio = $29.6 to $1

30. Determining Program Economic Benefit Values In valuing impacts or results of Extension programs, one or more of the factors listed may be considered for calculating the economic value of the impacts. Therefore, value may equal: Reduced costs Increased income Savings Value Added Expected values (projected use/income) Alternative opportunity cost of capital Increased productivity Willingness to pay Multiplier effect How we are better off = less injury/sickness/ death/medical costs/insurance premiums Non market benefits (cost effectiveness) Indirect values Determining Program Economic Benefit Values Fact Sheet 2002-01 JGR & CLM/2002 NCCES

31. Reduced Costs Increased Income Savings Increased Productivity Valuing Extension Programs Value Added Expected Value Alternative Opportunity Costs of Capital Willingness to Pay Multiplier Effect Indirect Values How We Are Better Off Non- market Benefits Determining Extension Program Economic Benefit Value URL: http://www.ces.ncsu.edu/AboutCES/Factsheets/EconomicBenefitValues.htm

32. Reduced costs • This means for estimating program value has been used extensively. • Estimate gains or dollars saved resulting from participants changing their behaviors/practices as a result of the organization’s educational programs.  • Examples: Food costs reduced as a result of comparison shopping; or the value of soil sampling education can be the dollars saved when application rates are based on analysis recommendations rather than indiscriminately applying higher rates.

33. Increased income • Extension programs can: • help participants gain new skills that enhance their job prospects, • lead participants to adopt innovative practices that increase yields, or • encourage other decisions that cause participants to increase their income. • One can estimate income gained as a result of adopting new or alternative enterprises that enable the more efficient use of available resources • The program's value can be the difference in participants' income levels before and after the program.

34. Increased Savings • There are a number of Extension programs that focus on savings enhancement. • The increased savings realized by program participants can be considered the estimated value of the program.

35. Increased Productivity • This valuation method is commonly used in non- agricultural businesses as well as in agriculture.  • Productivity is the ratio of output per unit of input. • Therefore, practices, processes, or innovations that either increases output or reduces the units of inputs would increase productivity. • Examples: • Farming more acres with the same number of employees • Larger or more efficient equipment often increases the productivity of a farm operation • Increased crop yield per acre • The difference between the value gained resulting from adopting a new practice, and the costs required to implement the new practice, would be a good estimate of the value of educational program causing such efficiency gains.

36. Value added • Value added is the increased value from using a product in a new way or modifying the product in a way that generates more profits for the business. • An example: a farmer uses the grain produced on the farm as feed for his livestock rather than selling the grain for cash. This may significantly improve the returns per bushel of grain produced. • The value of the program that resulted in this alternative use of the grain can be estimated to be the difference in returns produced by feeding the grain to the livestock compared to the price of the same bushel of grain if sold.

37. Expected values • This method of program valuation, requires one to have knowledge of the end product or result that is expected from the educational program. • For example, the value of a program to help people start home-based business may be the projected income generated by such a new business. • The expected income can be estimated based on the known history of similar ventures.

38. Alternative Opportunity Cost of Capital • Some Extension programs address alternative allocation of resources within one’s business to increase total return. • The increase in total returns can be used as an estimate of the program value. • For example, a farmer has a choice to 1. invest in machinery which would result in a major cost savings ,or 2. to invest the same funds in a regular savings acct. • The value of the program to assist the farmer in making this decision could be estimated to be the difference between the net income realized from the cost savings of the machinery investment and the interest earned had the money been invested in a savings account.

39. Willingness to Pay • The willingness of people to pay for some item or service may be used as an estimate of the economic benefit of providing that product or service. • Consumer’s perception of improved quality of products has been successfully parlayed into additional income through improved product packaging or presentation. • People are often willing to state how much they would be willing to pay for certain improved packaging, conveniences, and services. • Such stated willingness-to-pay could serve as the basis for estimating the value of educational programs exploring the costs and benefits of activities such as improved market development, or services such as recreational opportunities (trail development, agri-tourism, or similar recreational ventures).

40. Multiplier effect • This term is often used in economic development circles. • When new money is introduced into a community as a result of economic activity, it is likely that there will be greater demand for other goods and services in the community. • This may result in more new businesses. • The "multiplier" then, is the number of times that the initial dollar of economic activity causes additional dollars to be generated in the community. • The estimated value of the Extension program that stimulated the initial increase in economic activity could be the total value of additional goods and services being generated.

41. How we are better off? • The insurance industry continually places values on peoples’ lives and serious injuries.  • Changes in habits, lifestyles, practices, infrastructure, and physical and social environment, impacts our well-being. • Removal of hazards, improvements in physical surroundings, and changed behaviors that results in reduced illnesses or increased life expectancy, all add to the value of life. • Adopting practices that result in safer driving, improved eating habits, improved water quality and safety, increased seat belt use, safer pesticide handling, and numerous other behaviors are examples of changes that impact the protection of human life. • The value of such changes in behavior can reasonably be quantified using statistical values ascribed to human life, injury, and health, and thus can be used to estimate the economic value of educational programs.

42. Non-market benefits (cost effectiveness) • Extension programs produce change in human behavior. • Easy to identify • Difficult to value due to their non-market nature. • Examples of non-market benefits: (not bought or sold) • changes (increases) in a person’s education level, • changes in one’s aspirations or attitudes, • improvement in one’s quality of life, self-esteem, or major leadership skills and abilities. • Human development and social change have been studied and values projected for these changes.  • These projections can be used to place values on such Extension programs. • For example, US Census Bureau estimates values of different education levels in lifetime earnings.

43. EDUCATION PAYS OFF New data from the Census Bureau shows that people with higher education levels earn more money over a lifetime. Lifetime earnings estimates (Full-time workers ages 25 to 64) Source: Census Bureau THE NEWS & OBSERVER The Associated Press Sunday, July 21, 2002

44. Indirect values • Indirect values are difficult to assess. • Indirect benefits are affected by factors beyond the scope the educational program. • Valuation of indirect program results is questionable at best, if attempted by persons not recognized as valuation experts. • Example: the value of refrigeration equipment sold to provide better protection for food in a restaurant • The primary program goal: food safety through proper food preparation and handling practices by food service workers. • Motivation to buy new equipment may be: a result of Food Handlers Extension Certification Program.HOWEVER • In reality, the equipment may have simply been: • A replacement of old equipment, • Merely a step toward  expanding the restaurant’s business, • Or, simply the result of a visit by a very good refrigeration equipment salesperson.

45. Key Valuing Tips • Must be believable • Use common sense • Be reasonable and realistic • Use credible sources • Seek multiple sources of values information (Web, Experts, respected publications) • Ask clientele • Use observation skills • Anecdotal evidence may be sufficient • Use comparative values if needed • Historical values or commonly accepted values may be used • Extrapolation may be used if realistic • May use estimates of values lost • Shadow pricing may be used (reduced crime rates, education) • Think beyond the box • Can not readily value everything • Beware of unintended messages • Some outcomes may take longer than others Jgr 10-07

46. Communicating Program Value Through Success Stories Location: Caldwell [Increased income] Many small and limited-resource farmers are constantly looking to diversify their agricultural enterprises in order to stay in business. One area for potential growth in the foothills and mountains is in the green industry. During 2006, 131 small and limited-resource farmers received information on growing nursery and greenhouse crops as value-added products through workshops and personal consultations. Of the 131, 27 have diversified or expanded into the green industry. As a result, 324 acres are in production resulting in an increased total income of $291,600 for the 27 farmers. Location: Robeson [Reduced costs] [How we are better off] Robeson has the 2nd highest diabetes mortality rate in NC for primary cause. Afro- and Native Americans, majority of Robeson's population, have a higher diabetes rate than Caucasians. Robeson County Cooperative Extension partnered with the Health Dept. and 4 minority churches in 2006 (4 were completed in 2005) in conducting diabetes educational classes and grocery store tours. 71 consumers participated. According to follow up behavioral change surveys, 69% had improved foot care and 79% had made dietary changes to better control their diabetes. One congregation used class information to revive a member experiencing low blood sugar. One man relieved foot numbness by using correct walking step. In follow up conversations, several participants commented on increased label reading and used correct diabetic terminology. Nutrition intervention is known to contribute to health care savings ($5400 per person); thus this instruction saved an estimated potential of $383,400.

47. Communicating Program Value Through Success Stories Location: Hoke [Reduced costs] According to the Department of Juvenile Justice, Hoke County is a "target county" because a large number of youth are sent to training school. Between January and May in only one year, it has cost the county $25,272 to detain youth. To address the character and decision making skills of youth, Cooperative Extension offers a prevention program called 4­H Life Skills. Cooperative Extension collaborates with Hoke County Schools to offer the program to elementary and middle school students. The program has reached 158 students this year and none of the students who have graduated from the program have been referred to juvenile justice. For each child not referred to juvenile justice, the county saves $72.00 a day and $26,280 a year. Location: Chowan [Expected value] [How we are better off] [Increased productivity] [Increased income] 2007 was an extremely dry season for all of the counties' row crop and vegetable farmers. Because rainfall was extremely short of providing crop needs, growers were increasingly dependent on the abundant surface waters of the Chowan River and the Albemarle Sound. The sound and river become increasingly salty over time when rainfall is limited. Monitoring for salt concentration was initiated in late May and continued through the growing season. Salt concentrations were reported in newsletters and made available on request. Concentrations became high enough (3000ppm) that continued irrigation would cause crop damage. Cooperative Extension implemented an educational program focusing on Salt Concentration Monitoring that enabled growers to make informed decisions on irrigation timing and frequency and avoided a potential 20% loss in yield. On approximately 10,000 acres of irrigated crops, this could have amounted to a $800,000 loss.

48. Communicating Program Value Through Success Stories Location: Iredell [Reduced costs] Poultry growers in Iredell, Alexander, and Wilkes Counties have been assisted by the North Carolina Cooperative Extension Service in Iredell County to properly manage the waste produced on their farms. 87 growers were able to realize a cost savings of $1,142,970.00 in commercial fertilizer cost by utilizing poultry litter as the nutrient source for crops grown on their farms. Growers were assisted in litter analysis, soil testing, and crop nutrient requirements. 3529 acres of crop land and 15,676 tons of litter were analyzed and applied according to agronomic rates and in an environmentally friendly manner. Location: Henderson[Increased Income] [Expected Values] Several projects focused on sediment reduction and water quality has resulted in an increased demand for native riparian plants but limited local supplies. Through educational programs CES in partnership with various other agencies has been able to encourage five new growers to begin producing these plants to fill this niche. This will allow contractors the opportunity to source this material locally, potentially increasing the income of the local nursery industry by $1,000,000 annually and saving several miles of streambanks. This $1,000,000 will be kept in local coffers.

49. Valuing WorkshopInstructions: Review the story and offer your comments and suggestions Family and Consumer Sciences Programs The NC Cooperative Extension, Cabarrus County Center utilizes the volunteers of the Extension and Community Association (ECA) to carry educational information out into their communities within the county. The 155 Cabarrus ECA members focused on strengthening families through education, leadership and community service. Twenty seven members participated in the Certified Volunteer Unit (CVU) program which documents their volunteer hours annually. The 27 members who recorded their hours volunteered 16,396 hours helping with Extension programs and community service projects. Valued at $18.04 per hour, their efforts equaled $295,783 in contributions to the county. Daycare teachers, battered women, international residents, needy children and 40 additional local, state and national organizations benefited from their hours of volunteer efforts.

50. Valuing WorkshopInstructions: Review the story and offer your comments and suggestions Family and Consumer Sciences Programs Each year, millions of people are affected by foodborne illness. Many cases are a result of dining in restaurants and food service establishments that have used unsafe food handling practices. In June 2006, Beaufort County in partnership with the Beaufort County Environmental Health, Martin and Chowan County Cooperative Extension trained 35 food service managers in the Servsafe Food Safety Course. As a result of taking and passing the certification exam, 28 food service operations, will add 2 points for the next 3 years to their overall inspection grades. Based on data provided by Extension's food safety specialist, a case of foodborne illness costs $862. If each establishment prevented one case of foodborne illness, the savings would be $30,170.