skipnav
Home > VCFA Documents > Model Work

 

A Need-Based Funding Model for Universities

 

An Overview of the Components and Methodologies Used to Determine Institutional Funding Needs
 

      Need-Based Funding Model

 

Desirable Attributes of the Model:

·    Ensures adequate funding

·    Simple to understand

·    Provides equitable funding

·    Stabilize funding

·    Responsive to changes within institutions

·    Sensitive to colleges’ different missions

·    Based on reliable, uniform, and replicable data

·    Based on the state goals for postsecondary

·    Provides incentives for effectiveness and efficiency

·    Makes provisions for funding special-purpose units

 

 

        Need-Based Funding Model

 

Merits of the Model:

  Institutional Need is determined using cost data collected and compiled by the University of Delaware on 175 institutions over a 10-year period and average SREB Faculty Salaries.

     

  Equity is achieved when every institution receives the same funding for the same discipline and level of Student Semester Credit Hour (SSCH) produced by the institution.

       

  Model simplicity is achieved by reducing the SSCH to four Cost Categories (determined by Delaware Data) and three levels of instruction (undergraduate, graduate, and doctoral).

       

  Model provides for unique institutional missions by special funding methodologies.

 

        Need-Based Funding Model

 

The Model

Expenditure Functions:

The model determines funding needs in six (6) SSCH/FTE-based expenditure functions, one (1) facilities square footage based function, two (2) special mission functions and a diseconomy of scale.

 

SSCH/FTE-Based Functions:

               Teaching Salaries                     Other Instructional Costs

               Library Cost                                    General Institutional Support

               Research                                 Public Service

  

Square Footage-Based:       Facilities Maintenance and Operations

 

Special Missions:           Traditional Minority Mission   -      Land Grant Mission

 

Diseconomy of Scale: 

   Institutional Support & Other Instructional Costs for less than 3500 FTE

 

Teaching Salaries

        Need-Based Funding Model

  

 

Methodologies:

 

Sum each institution’s SSCH by CIP-code into 4 discipline

cost-categories by 3 levels, undergraduate, graduate (all

non-doctoral level graduate enrollment), and doctoral

levels.

 

Result = 12-cell matrix SSCH enrollment


Teaching Salaries

    Need-Based Funding Model

 

 

Four Disciplines Cost Categories:

 

 

1.    (Least Expensive) - English, General Studies, Mathematics, Interdisciplinary Studies, Health-Related Knowledge, Interpersonal Skills, Leisure & Recreational Activities, Personal Awareness, Philosophy, Psychology, Public Administration, and Social Sciences

 

2.    Ethnic & Cultural Studies, Marketing, Communications, Education, Languages, Home Economics, Law, Biological Sciences, Parks & Recreation, Basic Skills, Construction Trades, Mechanics, Precisions Production, Transportation, Business Management

 

3.    Agriculture, Conservation, Architecture, Communications Technologies Computer & Information Sciences, Library Science, Physical Sciences, Science Tech, Visual & Performing Arts, Health Professions

 

4.      (Most Expensive) – Engineering, Engineering Related Technology

 

 

 

Teaching Salaries

 

  Need-Based Funding Model

 

 

SSCH Required to Produce an FTE Faculty Member by Cost Category and Level

 

Levels 

Cost Categories  Undergraduate   Graduate     Doctoral

             I.                      645               170             130

            II.                      480               250             145

           III.                      365               160             120      

          IV.                      230               102               70

 

 

 

 

 

 

Teaching Salaries

 

        Need-Based Funding Model

Calculations:

 

       Each institution’s SSCH are classified into the 12-cell Cost Category-Level Matrix.

 

       Each of the 12 SSCH cells divided by the SSCH

                        required by that Cost Category for an FTE faculty.

 

       FTE faculty numbers are totaled for each of the 3 levels.

 

 

       The FTE faculty are multiplied by an SREB average faculty

salary for the appropriate level ensuring equal funding for all SSCH of the same discipline and level.

 

 

 

Other Instructional Costs

 

        Need-Based Funding Model

 

 

        Expenditure types:

 

Academic Departmental Operating, Non-Credit Instruction, Correspondence Courses, Faculty Staff Benefits, etc.

 

           Calculation:

                45% of Teaching Salaries

 


Library Costs

 

        Need-Based Funding Model

 

 

Expenditure types:

 

Librarians and support staff salaries, fringe benefits, library maintenance and operations, collection acquisitions and maintenance, and library technology costs.

 

Calculation:

 

11% of the sum of Teaching Salaries and Other Instructional Costs

General Institutional Support

 

        Need-Based Funding Model

 

 

Expenditure types:

 

Student services, financial aid, academic deans and other academic support staff, general administration, campus security, admissions, personal and academic counseling, campus computing centers, etc.

 

Calculations:

 

54% of the sum of Teaching Salaries and Other Instructional Costs


Research

 

  Need-Based Funding Model

 

 

Expenditure types:

 

Salaries and benefits of research faculty and laboratory assistants, research supplies, animal facilities, lab supplies and support

 

Calculations:

 

     5% of undergraduate level teaching salaries generated

25% of graduate level teaching salaries generated

50% of doctoral level teaching salaries generated 

Public Service

        Need-Based Funding Model

 

 

Expenditure types:

 

Governmental relations, public broadcasting, official functions, parent activities, news service, alumni affairs, etc

 

Calculations:

 

           3% of teaching salaries

Facilities Maintenance & Operations

        Need-Based Funding Model

 

  

 

Expenditure types:

 

Utilities – electricity, water, sewer, gas, trash/garbage removal

 

Maintenance & operation – physical plant staff salaries and benefits, telecommunications, grounds maintenance, custodial care, and building maintenance (carpenters, electricians, plumbers, painters, cabinet makers)

Facilities Maintenance & Operations

  Need-Based Funding Model

 

 

Calculations of Space Needs:

 

    Academic Space

 

The needed square footage is determined using the 5-Factor Academic Space Prediction Model. Space needs are determined in five categories:

 

Teaching                            Academic Offices

Library                                    Academic Support

Research

 

 

 

 

Facilities Maintenance & Operations

        Need-Based Funding Model

 

 

 

 

                    General Institutional Support - 50% of the Academic Space. 

 

                    Auxiliary Space is excluded.

 

Calculation of Funding Needs:

 

Excess/Shortage Sq. Ft. = Total Sq. Ft. – Model Sq. Ft.

 

Funding Need  =   Excess/Shortage Sq. Ft.  X  $2.40/Sq. Ft.  +

Needed Existing Sq. Ft.  X  $4.85/Sq. Ft.

 

Special Missions

  Need-Based Funding Model

 

 

            Types of Special Missions :

 

      Federal Land Grant Institutions

 

      Traditional Minority Mission

     

 

      Calculation:

 

  Federal Land Grant Institution = 10% of Teaching Salaries

 

  Traditional Minority Institution = 10% of FTE based Funding

 

 


 

Diseconomy of Scale

  Need-Based Funding Model

 

 

An institution receives additional funding for Other Instructional Costs and General Institutional Support if its student FTE Enrollment is less than 3,500.

 

Calculation:

 

           FTE Below 3,500             Funds/FTE

1 -  150                             $1,200

Next 150                           $1,000

Next 200                           $   800

Next 250                           $   600

Next 250                           $   300

Next 200                           $   200  

Total Funding Need

  Need-Based Funding Model

 

 

Calculations:

 

The total funds needed by the institution are represented by the sum of the recommendations for: Teaching Salaries, Other Instructional Costs, Library Costs, General Institutional Support, Research, Public Service, Facilities Maintenance and Operations, Special Missions, and Diseconomy of Scale.

Tuition and Mandatory Fee Income

  Need-Based Funding Model

 

 

 

Calculations:

 

=   Undergraduate SSCH   X   $130

=   Graduate SSCH   X    $190

=   Doctoral SSCH    X   $230

 

Total = Sum of above calculations

 


Appropriation Need/Reuest

  Need-Based Funding Model

 

 

 

Calculation:

 

Appropriation = Total Funding Need  -  Tuition & Fee Income