Associated Students of New Mexico [ASNM]
THE
INSTRUCTION
AND GENERAL
FUNDING
FORMULA
An Overview
The New Mexico Commission on Higher Education 1997
CURRENT FUND
EXPENDITURE CATEGORIES
With in each fund, there are common expenditure categories. Following is a list
of Current Fund expenditure categories:
Instruction & General
Student Social & Cultural Development
Research
Public Service
Internal Service Departments
Student Aid, Grants, & Stipends
Auxiliary Enterprises
Intercollegiate Athletics
Independent Operations
The New Mexico Higher Education Funding Formula recommends equitable expenditure
levels for the Instruction & General (I&G) portion of
current fund expenditures.
FUNCTIONAL CATEGORIES
WITHIN I&G
Expenditures are categorized by function or purpose within the institution.
Following is a list of functional categories for I&G
expenditures:
Instruction
Academic Support
Student Services
Institutional Support
Operation & Maintenance of Plant
A separate equation, or formula, is used to calculate equitable expenditure
levels for each these functional categories. The sum of
all of these equations results in a recommended I&G expenditure level for
institutions.
INSTRUCTION
The following activities are considered a part of the
Instruction category:
General Academic Instruction
Occupational & Vocational Instruction
Special Session/Summer Session Instruction
Community Education
VARIABLES IN THE
INSTRUCTION FORMULA
The following variables for each institution are plugged into the instruction
formula in order to determine an equitable expenditure
level for instructional activities.
Student Credit Hours (SCH)
Cost per SCH Including Differentials for:
> Size of Institution (small vs. large)
Level of Instruction (lower division, upper division, or graduate level courses)
> Specific Discipline (e.g. Agriculture, Business, Social Sciences)
> Session Type (regular session vs. summer session)
ACADEMIC SUPPORT
The academic support category includes expenditures for activities such as:
Libraries :
IMuseums & Galleries
Acudio-Visual Services
SAncillary Support
IAcademic Administration & Personnel
ODevelopment
Course & Curriculum Development
Separate versions of the academic support fonn~0 exist for the two-year and the
four-year institutions. Each version has an equation
for an institution's annual library replacement allowance, and an equation for
academic administration.
TWO-YEAR ACADEMIC
SUPPORT
General Academic Support "I" X 9N
for branches or 11% for independent institutions
Acquisition Units X $47.04
Library X Replacement Rate of 5%
Base of 3 Staff at Rate of $89,663
Additional Staffi1ng Units at Rate of $27,675
Per 200 FTE for Institutions with FTE Enrollment > 600
Per 300 FTE for Institutions with FTE Enrollment > 2,000
FOUR-YEAR ACADEMIC
SUPPORT
This formula has separate calculations for library funding and for general
academic administration.
Annual Library Replacement Allowance
> Equals 5% of ACRL Standards, funded at 75%
> FTE Students
> UG Majors/Minors
> Masters/No Ph.D.
> Masters W/ Ph.D.
> Doctoral Program
IAcademic Administration
"I"
20 Volumes
350 Volumes 6,000 Volumes 3,000 Volumes
25,000 Volumes
19% of
STUDENT SERVICES
The Student Services formula determines appropriate expenditure levels for the
following types of activities or services:
Supplementary Educational Services:
Counseling & Career Guidance
Financial Aid Administration
Student Admissions & Records
There are separate versions of the student services formula for two-year
institutions and four-year institutions.
TWO-YEAR STUDENT SERVICES
The following factors are a part of the two-year student services formula:
Base Funding Up To 600 Headcount $201,104
$47,784
$ 1 09,352
Staff Salaries C
Fringe Benefits
Other Costs
Additional Staff1ng Units per 150 HC for branches and per 125 HC for independent
institutions up to 5, 1 00 $44,780
HC, then per 1 50 HC
Credit taken for Carl Perkins funding
FOUR-YEAR STUDENT
SERVICES
The following factors are a part of the four-year student services formula:
Minimum Staffing Headcount = 1,500
Minimum Staff FTE = 20
Additional HC per FTE = 150
Formula Salary =$25.138
Formula Fringe Benefits =$5.973
Other Costs/FTE Staff = $13,669
INSTITUTIONAL SUPPORT
The institutional support formula determines appropriate expenditure levels for
the following types of activities:
CExecutive Management
Finscal Operations
SGeneral Administrative Services
Logistical Services
Community Relations
INSTITUTIONAL SUPPORT
FACTORS
The following factors are a part of the institutional support formula for both
two-year and four-year institutions:
Current Year's Funding Level
SGrowth calculated as a percentage of growth in total I & G expenditures, ~
FBase
less Institutional Support expenditures
> 10% for NMHU, WNMU, ENMU,
NMIMT, and all two-year institutions
6% for UNM & NMSU
OPERATION AND MAINTENANCE OF PLANT
This formula determines appropriate expenditure levels for the following types
for activities or services:
1 Plant Operations/Maintenance
> Custodial Services
General Building & Grounds Upkeep > Auto & Truck Maintenance
Etc.
Utilities
There are separate plant operations/maintenance formulas for the two-year and
four-year ; institutions, however, the utilities formula
is th40 same for both.
TWO-YEAR PLANT
OPERATIONS &
MAINTENANCE
The following factors are a part of the two-year plant operations and maintenance
formula:
CSquare Footage per FTE $17,0,
Fiormula Salary
SFormula Fringe Benef1ts
LOther Costs/FTE Staff
12,238
$4,065
$7,07 1
FOUR-YEAR PLANT OPERATIONS & MAINTENANCE
The following factors are a part of the four-yeai:4 plant operations &
maintenance formula:
SSquare Footage per FTE = 9,500
FFormula Salary = $18,644
Formula Fringe Benefits = $4,429
Other Costs/FTE Staff = $7,495
UTILITIES
Both the two-year and the four-year institutions
use the following formula for utilities:
Start with Established Base
Calculate $/sq. ft. from the base
GMultiply $/sq. ft. X new square footage
EAdd to Base
UInflate Adjusted Actuals with Inflation
Factor
REVENUE CREDITS
The various formulas described up to this point determine appropriate expenditure
levels. Various credits are then subtracted from
this expenditure levels: and adjustments due to required transfers to non-I & G
funds are made. This determines a recommende d general
fund appropriation amount.
Tuition -- An assumed level of tuition revenue is subtracted, with the
recognition that institutional governing boards determine
actual tuition rates.
FLand and Permanent Fund -- Where applicable, credit is taken for an amount up
to the level of the renewal and replacement formula
described on the next page.
Interest Income -- Eighty percent of interest earned on current fund balances is
the previous year is credited against formula
expenditures.
Miscellaneous Fees -- The credit is calculated at one dollar per formula SCH.
Unrestricted Federal Funds -- The formula utilizes 50 percent of these funds
received in the previous fiscal year.
Local Mill Levy (two-year only) -- Estimated current year receipts are used to
determine the level of the credit.
REQUIRED TRANSFERS
Building Renewal and Replacement -- An amount based on the replacement cost and
age of institutional facilities is provided for
transfer to plant funds.
FEquipment Renewal and Replacement -- AQ amount based on the replacement value
of unrestricted Instruction and General equipment
inventories is provided for transfer to plant funds.
State Scholarship Program -- This transfer to student financial aid is
calculated by multiplying three percent of the previous fall
term's headcount enrollment by the current annual tuition and fee rate.
RECOMMENDED I & G
APPROPRIATION
The following equation determines the recommended general fund appropriation for
Instruction and General:
Base Academic Year Instruction
+ Summer School Instruction
----------------------------
= Formula Instruction
+ Academic Support
+ Student Services
+ Institutional Support
+ Plant Operation & Maintenance
+ Utilities
----------------------------
+Total Formula Expenditures
- Revenue Credits
+ Transfers
----------------------------
= Instruction and General Appropriation
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