TOTAL FUNDING BASE: Sum of I and II
(Instruction, Research, Community Education and Public Service Expenditures)
The University System operates under a formula funding system developed in 1982 and implemented in the FY1984 budget request. The goal of full funding of the formula was achieved in FY1987.
The formula is a mathematical device that aggregates the funding needs of all institutions to provide a continuous level of support for the Resident Instruction activity of the University System. The formula is used by: 1) the Board of Regents to request Resident Instruction funds from the State of Georgia; 2) the Governor to recommend Resident Instruction funding to the Legislature; and 3) the Legislature to appropriate State funds for Resident Instruction to the Board of Regents. The formula is not used to allocate money to the various institutions.
An array of workload variables is applied to a set of constants to determine Resident Instruction funding needs. Student workload, expressed in terms of quarter credit hours (QCH), directly or indirectly generates about 80 percent of the total budget. Operation and maintenance costs of the physical plant account for another 15 percent of the budget. Thus, the formula is student driven. The workload variables and constants are described below.
I. INSTRUCTION AND RRESEARCH
Group 1. Law, Letters, Library Science, Psychology, and Social Sciences
Group 2. Area Studies, Business, Communications, Education, Home Economics, Mathematics, Public Affairs, and Interdisciplinary Studies
Group 3. Agriculture, Architecture, Biological Sciences, Computer Science, Engineering, Fine and Applied Arts, Foreign Languages, Health Professions, Physical Sciences, and Technologies
Group 4. Learning Support Programs
Group 5. Medicine, Dentistry, Veterinary Medicine
Total instruction expenditures = academic salary expenditures + instructional support position expenditures + instructional operating expense expenditures.
II. PUBLIC SERVICE. A basic amount is funded for each institution to support a campus coordinator and one support position. Separately organized institutes are specially funded.
TOTAL FUNDING BASE: Sum of I and II
(Instruction, Research, Community Education and Public Service Expenditures)
III.ACADEMIC SUPPORT. 17.7 percent X Total Funding Base = Academic Support Expenditures.
IV. STUDENT SERVICES AND INSTITUTIONAL SUPPORT
General Support. 23.1 percent X Total Funding Base = Student Services and Institutional Support Expenditures.
Fringe Benefits. Projected actual needs for benefits such as FICA, health and life insurance, workers' compensation, etc.
Teachers' Retirement.
V. OPERATION AND MAINTENANCE OF PHYSICAL PLANT
Regular Operations. Number of square feet of building space X cost per square foot = Expenditures for Operation and Maintenance of Physical Plant (in FY1995 budget: 29,796,684 square feet at $3,6991 per square foot).
Major Repair/Rehabilitation Fund. .75% X Current Replacement Value (FY94 replacement value of $4,065,351,333) = Expenditures for MRR.
Utilities. Number of square feet (above) X cost of utilities per square foot ($1.6042 in FY94)= Expenditures for utilities.
VI. HEW Desegregation Programs
VII. Quality Improvement Programs. 1% of all above expenditures = Expenditures for Quality Improvement.
TOTAL FORMULA REQUIREMENT: Total of all above expenditures (sum of I through VII).
LESS REVENUE
Student Tuition and Fees. Set at 25% of the total requirement, excluding Public Service and Community Education, Research, MRR, and Desegregation Programs.
Graduate Assistant Fee Reduction
Other Revenue
STATE APPROPRIATION REQUEST = Total Formula Requirement Minus Revenue
Source: Formula for Excellence: Financing Georgia's University System in the 1980's (1982); Office of the Senior Vice Chancellor for Capital Resources