Funding Model & Finance Policies
- The Comprehensive Funding Review
The Council staff began a comprehensive funding review of all finance policies in 2004. This project runs parallel to the review of the public agenda and aligns all finance policies to the revised public agenda. The review will result in Council action on revisions to the benchmark funding model, capital finance policies, tuition policies, budget recommendation processes, performance funding component in the funding model, incentive funding programs, and special initiatives. The goal of the project is to directly align the budget process with the public agenda.
- Funding Distribution Methodology
As part of the comprehensive funding review in 2004, the Council approved a methodology for distributing appropriated funds to the institutions if less than the full Council recommendation or in cases where budget reductions are implemented
- Current Funding Model
The current funding model uses a statistical procedure to cluster similar institutions based on 20 nationally reported institutional characteristics. A total of 19 similar institutions were selected from the statistical analysis to be the basis for operational funding for the Kentucky institutions. The base funding level is determined by comparing total public funds per full-time student among 10 benchmark peer institutions and funding the institutions at the mid point of funding among the peer institutions.
- Historical Approaches
A complete overview of the history of postsecondary education funding and funding formulae is provided.