Current through Register Vol. XLI, No. 50, December 13, 2024
Section 135-2-5 - Formula Calculations5.1. The funding formula shall operate on a five-year cycle, beginning with fiscal year 2024 budgeting cycle.5.2. Benchmarking 5.2.1. In the first year of each funding cycle, abbreviated herein as year zero (y0), the Council shall establish baseline values for each metric based on an average of the three most recent full academic years of available data. The baseline data shall provide a basis of comparison upon which institutional performance shall be gauged in subsequent years of the funding cycle (years one through four).5.2.2. In each year following y0, each institution's recommended funding level shall be calculated based on the increase or decrease of the institution's total outcomes score as compared to the y0 benchmark value.5.3. Funding Formula Calculations5.3.1. At the beginning of each annual budget cycle, the following values shall be calculated and used in the determination of each institution's recommended base appropriation request:5.3.1.a. The number of outcomes achieved within each data metric, with weighting factors applied where appropriate for:5.3.1.a.1. Students representing Focus Populations; and5.3.1.a.2. Certificates or degrees awarded in State Priority Programs;5.3.1.b. The Total Outcomes Score based on an average of the three most current years of data for each of the metrics established in Section 4.5 of this rule;5.3.1.c. The net increase or decrease in outcomes score between the current year and the benchmarking year (y0);5.3.1.d. The inflation-adjusted rate per outcome;5.3.1.e. The Base Operating Budget, adjusted for inflation; and5.3.1.f. The prior year's Outcomes Based Funding level, adjusted for inflation.5.3.2. Each institution's base appropriation request shall be determined by the following calculations: 5.3.2.a. The net increase or decrease in outcomes score is multiplied by the system-level rate per outcome to determine the net change in Outcomes Based Funding. This value is added to the inflation-adjusted Outcomes Based Funding level from the prior year.5.3.2.b. The prior year's Base Operating Budget is adjusted for inflation and added to the Outcomes Based Funding pool, calculated in paragraph 5.3.2.a of this rule.5.3.2.c. Any annual reduction to an institution's Outcomes Based Funding pool shall not exceed five percent (5%).