Budget Office
Instructional Funding Formula
The Instructional Funding Formula
The Instructional Formula is a series of calculations used to develop the funding for instructional faculty, classified employees, student wages, operating, and equipment within the Instruction function.
The most significant (and complex) feature of the Instruction Formula is the credit hour matrix used to determine the number of instructional faculty. Student credit hours are classified by discipline according to cost (Clinical, High, Medium, and Low) and by level of instruction (Lower Division, Upper Division, Masters, and Doctoral). The result is a 16-cell matrix. The student credit hours are converted to FTE. FTE is based on the current matrix distribution ratio multiplied by a three year trailing weighted average. The FTE is then divided by student/faculty ratios appropriate for each cell of the matrix to determine the total number of instructional faculty. The number of classified employees allocated to each institution is determined on the basis of a 5:1 faculty to classified ratio. Classified employees are funded at a grade-step 27-01.
The significance of this matrix is that it allows the state to distinguish between institutions on the basis of programmatic mix and mission. Institutions with larger percentage enrollments in clinical programs such as Nursing, or high cost programs such as Engineering and the Physical Sciences generate more faculty positions than do Institutions whose enrollment is primarily in Business and the Social Sciences. Similarly, institutions with a greater proportion of upper division and graduate students receive more faculty positions than do campuses whose mission is primarily lower division instruction. The funding for instructional faculty is calculated by multiplying the number of faculty positions generated by the credit hour matrix by an average faculty salary (mid-point between Q1 and Q2 for a 12 month assistant professor).
The number of graduate assistants is determined by applying ratios to Masters and Doctoral enrollments. Institutions receive one graduate assistant for every 8 Masters students and 3.33 doctoral students.
Student wages, operating and equipment are per unit calculations based upon the number of faculty and classified positions.
For the current fiscal year, the formula is funded at 84.5%.
