A Report on the Feasibility of Textbook Rental - IBHE

Submitted cost data are presented by campus in Appendix D. As most institutions have no directexperience with rental programs, it is important to keep in mind that the information is estimated.Community Colleges. Based on survey responses, the average estimated start-up cost ofa textbook rental program at a community college is $2.5 million. Estimated start-up costs rangefrom $454,000 at Kankakee Community College to $3.9 million at Lincoln Land CommunityCollege. City Colleges of Chicago estimate the start-up costs at $23.1 million; however, sinceCity Colleges of Chicago is a district consisting of seven colleges, the cost is $3.3 million perindividual institution. The total estimated start-up cost of implementing textbook rental programsat the 15 community colleges that provided cost data is $55.5 million.All but two of the responding community colleges provided the IBHE with estimatedannual operating costs. The estimated average annual cost is $1.3 million per community college,and estimated annual costs range from $32,000 at Kankakee Community College to $3.3 millionat Lincoln Land Community College. City Colleges of Chicago estimate total annual costs at$12.1 million, or $1.7 million per individual institution. The total annual operating cost at theresponding community colleges is estimated to be $28.4 million.The itemized table on page 32 provides the estimated average start-up and annualoperating costs based on the community college responses. Extrapolating from the returnedsurveys with complete start-up and annual operating cost information to all community colleges,the estimated start-up cost of implementing textbook rental programs at all community collegesexcept Frontier Community College, Lake Land College, and Rend Lake College, whichcurrently have rental programs, is $112.9 million. The estimated annual operating cost oftextbook rental programs at all the community colleges is $64.0 million.Public Universities. Based on survey responses, the estimated average start-up cost of atextbook rental program is $10 million per university. Estimated start-up costs at publicuniversities range from $2 million at Northeastern Illinois University to $20.2 million at theUniversity of Illinois at Chicago. These estimates appear to be on par with the estimated $9.8million start-up costs supplied by Southern Illinois University–Edwardsville for comparativepurposes. Using these estimates, the start-up cost to implement textbook rental programs at all thepublic universities except SIU-E and Eastern Illinois University, which currently have rentalprograms, is $98.3 million.All of the responding public universities provided IBHE with estimated annual costs ofoperating a textbook rental program. Estimates of annual costs at public universities average $3.8million and range from $748,612 at Chicago State to $10.9 million at the University of Illinois atChicago. Using these estimates, the annual cost of textbook rental programs at all the publicuniversities except SIU-E and EIU is expected to be around $37.6 million.The itemized table on page 33 provides the estimated average start-up and annual costs ofthe 10 public university responses.-31-