(a) Summary of measures.

1. (1) The productivity funding formula consists of four (4) categories:

   1. (A) Effectiveness (eighty percent (80%) of formula);
   2. (B) Affordability (twenty percent (20%) of formula);
   3. (C) Adjustments; and
   4. (D) Efficiency (plus or minus two percent (2%) of formula).
2. (2) The metrics of the four (4) categories are broken down below.

   Effectiveness	Affordability	Adjustment	Efficiency
   Credentials Progression Transfer Success Gateway Course Success	Time to Degree Credits at Completion	Research(4-year only)	Core Expense Ratio Faculty-to-Administrator Salary Ratio

(b)

1. (1) At this time, noncredit workforce training and postcompletion success metrics are not included in the formula but will be when adequate data is available.
2. (2) Other future technical modifications, such as an addition of an inflationary index and refining of existing metrics, will be considered in the future as necessary.

(c)

1. (1) Each metric is calculated using a three-year average based on the most recent academic year data that is available.
2. (2) Institutions will receive points in the productivity model according to the requirements of each metric.
3. (3) Points for each institution will be totaled and applied according to the weighting assigned to each metric in the effectiveness and affordability categories.
4. (4) Once the points for the effectiveness and affordability measures are totaled, adjustments based on research activities will be applied.
5. (5) Finally, the efficiency category will be applied against the adjusted total.
6. (6) The final total of points will become the institution’s productivity index.