Extension's Financial Security: Public Value and Adaptive Leadership

Created with the help of Google Notebook LM, this briefing summarizes key points and concepts presented in an article I co-authored on "Extension’s Response to the Change in Public Value: Considerations for Ensuring Financial Security for the Cooperative Extension System," published in the Journal of Human Sciences and Extension.

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The article explores the financial challenges facing the Cooperative Extension System (Extension) due to shifts in public value and the increasing influence of neoliberalism. It examines how Extension administrators perceive these challenges and the strategies they are employing to ensure financial security. Jeremy Elliot-Engel's research highlights the stagnation of federal funding, cyclical state and county funding, and the growing demand for demonstrating return on investment. The study, based on interviews with state Extension directors and 4-H program leaders, reveals the critical need for Extension to adapt by effectively communicating its value through data-driven evidence, leveraging stakeholder relationships, and exploring diverse funding streams like grants and fees for service, while navigating the inherent limitations of these approaches. Ultimately, the article underscores that a coordinated effort combining data, relationships, and compelling narratives is crucial for securing the future financial stability of the Cooperative Extension System.

Main Themes and Important Ideas:

The Changing Landscape of Public Funding and the Rise of Neoliberalism:

• The article identifies a significant shift in the public contract, moving from a general belief in the value of public service to a demand for demonstrable "return on investment" (ROI).
• This shift is attributed to the increasing influence of a "firmly neoliberal framework," which is characterized by a belief in free market capitalism, individual responsibility, and reduced state intervention in the economy.
• Consider that neoliberalism, as a "cultural field," has led to an "erosion" of public willingness to fund public services like higher education, impacting Extension's traditional funding sources.
• Administrators recognize this philosophical shift, noting that stakeholders are increasingly asking, "What is the return on investment? And, why should the public dollar be invested in this program compared to any other given program?"

Financial Instability and its Impact on the Cooperative Extension System:

• Cooperative Extension has experienced "federal budget stagnation as well as state and county cyclic funding cycles" since the 1980s, leading to increasing concerns about financial stability.
• Administrators identified a "reduction of financial support as the most significant crisis for the Cooperative Extension system." This reduction impacts the delivery of existing programs and limits the ability to engage in new initiatives.
• Downward pressure on funding has directly resulted in a "reduction in the number of people to do the work," which is particularly challenging for an organization based on direct community education.
• Federal funding through the Smith-Lever Act is considered the "foundation for the funding partnership," providing flexible base support crucial for matching funds. However, this funding has been at "flat funding levels," effectively shrinking due to inflation.

Technical Responses and the Emphasis on Communicating Public Value:

• In response to financial pressures, Extension has adopted "technical approaches" focused on better documenting and communicating its "public value" and "impacts" to stakeholders, particularly legislators.
• Strategies include increasing evaluation efforts, using impact statements, and engaging in strategic planning, mirroring practices in the public and non-profit sectors.
• The goal of these efforts is based on the narrative that "if Extension does a better job of documenting and communicating the impact and relevance of Extension education programs to funders, then more appropriate financial resources will follow."
• Concepts like "public value stories and statements" and "public good" have been used in place of "impact" to build support.

Measuring and Demonstrating Public Value:

• Various methods for measuring and calculating public value have been explored, including economic impact studies and Social Return on Investment (SROI). Economic impact studies aim to quantify social, economic, and environmental values in monetary terms.
• SROI is highlighted as a "holistic method supporting exploration of the connection between funding and program outcomes" to measure the comprehensive value of Extension.
• Administrators recognize the need to move beyond simply stating the number of participants to demonstrating "what were the outcomes [for] those millions of people?"
• There is a growing emphasis on "evidence-based information about the impact of our programs," with increased focus on large-scale research projects and the development of logic models to connect short-term outputs to long-term outcomes.

The Role of Adaptive Leadership in Navigating Financial Challenges:

• The article frames the funding challenges as "adaptive challenges," requiring organizational learning and shifts in behavior, rather than just "technical problems" with known solutions (see Fabris McBride, 2022).
• Adaptive leadership principles, such as "Get on the Balcony" (gaining perspective), "Identify the Adaptive Challenge" (differentiating technical vs. adaptive issues), and "Maintain Disciplined Attention" (focusing on the hard work), are relevant for administrators.

Diversifying Funding Streams: Grants, Contracts, and Fees for Service:

• Faced with declining public support, administrators have increasingly relied on "soft dollars" from grants and contracts. While seen as "necessary" and offering "vast opportunities" by some, they also pose challenges.
• Grants are often "term-limited," creating "discontinuity of service" and hindering the development of long-term community-responsive programming. University policies on funding permanent positions with soft money can further exacerbate this issue.
• The pursuit of grants can sometimes lead to mission drift, as administrators may feel pressured to seek funding for projects that don't perfectly align with Extension's goals.
• "Fees for programming," particularly 4-H memberships, have become an active strategy for generating financial support. However, there are practical limitations and concerns about the sustainability of relying heavily on fees.

The Importance of Stakeholder Relationships and Advocacy:

• Establishing "positive and trusting relationships with funders" is identified as crucial for increasing support. Administrators emphasize "reaching out to businesses and stakeholders to develop stronger partnerships."
• Stakeholders with personal experience with Extension programs, particularly alumni, are more likely to see its value and provide support.
• "Advocates" who can articulate the specific impacts of Extension programs are considered highly effective in influencing legislators. Legislators want to hear not just from Extension staff but also from their constituents about the positive outcomes.
• However, the article acknowledges that even strong relationships and compelling testimonials may not overcome significant economic downturns or fundamental shifts in public funding priorities. As William stated, "I can line up a thousand of our clientele to testify on our behalf, but the answer will always come back to me the same" when resources are simply unavailable.

The Interplay of Data, Relationships, and Narrative in Communicating Value:

• Neither relationships nor data alone are sufficient to secure financial stability. A coordinated approach is needed.
• Personal experiences and narratives provide powerful individual-level evidence, while empirical evaluation results offer broader understanding of Extension's impact.
• The credibility of the messenger is also important. While administrators are expected to advocate for funding, messages from satisfied stakeholders can be particularly influential.
• Effective communication of public value requires combining stakeholder personal experiences, relationships, and personal narratives with data-driven ROI to influence legislative financial support.

Quotes:

• "The public contract between citizen, legislature, and public-serving organizations has changed to, ‘What is the return on investment?’"
• "While this narrative has been identified in the literature for decades, the Cooperative Extension system continues to experience financial instability."
• "Neoliberalism is customarily ‘thought of as the return and spread of one specific aspect of the liberal tradition, namely economic liberalism’ (Thorsen & Lie, 2006, p. 2)."
• "In contemporary United States culture, society demands proof of Extension and LGUs as valuable public goods’ (Franz, 2015, p. 13)."
• "I think the ultimate crisis for Extension in this country, not just here [in this state], will be the moment when the federal funds, if there was decision at that level, [are] not invested in Extension with Smith-Lever. I think if that were to ever happen, that would be a critical moment."
• "Extension ‘[is] a hundred variations on a theme.’" (referring to the unique funding models in each state)
• "We need to be focused on developing capacity funding; that’s the message everyone should be having."
• "There’s just a lot of conversation about what the future’s going to hold and whether or not we’re going to have all the opportunities that we have now, going forward 10 or 20 or 50 or 100 years. I think that’s the biggest piece I worry about. I think that within our organizations, we’ve got great people. We can make a lot of great decisions. We can move forward, but we heavily rely on the public to fund these institutions."
• "So, you can’t just say millions of people, but what were the outcomes [for] those millions of people?"
• "The grant money [is] out there; there are . . . always opportunities to apply for more grants."
• "[At] this university, you cannot have permanent positions that are on soft dollars, so the only way for us to grow is by drawing on grants and gifts and those types of things. But regrettably, [that] doesn’t create a sustained position for people to feel like they have a career trajectory."
• "Your advocates have to be able to say why is it important—this time more likely to graduate from high school [or] two times as likely to pick a science career and go to college. Those are issues legislators want to hear."

Conclusion:

The article provides valuable insights into the complex financial challenges facing the Cooperative Extension System in an era of shifting public values and increasing neoliberal influence. It underscores the critical need for Extension administrators to adopt adaptive leadership approaches, prioritize the measurement and effective communication of public value through a combination of data, compelling narratives, and strong stakeholder relationships, and strategically navigate diverse funding streams while acknowledging their limitations. Ensuring the long-term financial security of Extension requires a multifaceted and coordinated response that recognizes the evolving expectations of funders and the fundamental shifts in the broader societal and political landscape.

Original Source:

Elliott-Engel, J., Westfall-Rudd, D. M., Seibel, M., & Kaufman, E. (2020). Extension’s response to the change in public value: Considerations for ensuring financial security for the Cooperative Extension System. Journal of Human Sciences and Extension, 8(2), 5. https://doi.org/10.54718/BWRZ4634