(a) Core expense ratio.

1. (1) This measure is intended to encourage resource allocations which maximize spending in areas that directly impact:

   1. (A) Student success; and
   2. (B) Achievement of institutional mission.

2. (2)

   1. (A) The core expenses ratio is weighted at fifty percent (50%) of the efficiency category.
   2. (B) The ratio measures the expenditures on the core functions of an institution compared to the expenditures for institutional support and how the ratio compares to an institution’s Southern Regional Education Board (SREB) institution peer group.

3. (3)

   1. (A) The core expense ratio is equal to the sum of instruction expenditures, academic support expenditures, student services expenditures, public service expenditures, and research expenditures on a per full-time equivalent (FTE) basis divided by the institutional support expenditures per FTE.
   2. (B) Data for these expenditure elements are reported to and published by the integrated postsecondary education data system (IPEDS).

4. (4)

   1. (A) The adjustment for each institution is calculated by finding the percentage deviation of the core expense ratio of each institution compared to the SREB average core expense ratio for their peer group.
   2. (B) The resulting percentage is assigned an efficiency adjustment as described in the chart below. Weighting specifications – Core expense ratio

      % Deviation of ration from SREB Peer Group	% Change to Productivity Index score
      Below -20%	-2.0%
      -15.01% to -20%	-1.5%
      -10.01% to -15%	-1.0%
      -5.01% to -10%	-0.5%
      -5% to 5%	0.0%
      5.01% to 10%	0.5%
      10.01% to 15%	1.0%
      15.01% to 20%	1.5%
      Above 20%	2.0%

(b) Faculty-to-administrator salary ratio.

1. (1) This measure is intended to encourage efficient use of administrative positions to support institutional mission.

2. (2)

   1. (A) The faculty-to-administrator salary ratio is weighted at fifty percent (50%) of the efficiency category.
   2. (B) The ratio measures:

(i) The expenditures on faculty salaries compared to the expenditures on institutional support salaries; and

1. (ii) How the ratio compares to an institution’s Southern Regional Education Board (SREB) institution peer group.

2. (3)

   1. (A) The faculty-to-administrator salary ratio is equal to instruction salaries and wages per FTE divided by the institutional support salaries and wages per FTE.
   2. (B) Data for these expenditure elements are reported to and published by the integrated postsecondary education data system (IPEDS).

3. (4)

   1. (A) The adjustment for each institution is calculated by finding the percentage deviation of the faculty-to-administrator salary ratio of each institution compared to the SREB average faculty-to-administrator salary ratio for their peer group.
   2. (B) The resulting percentage is assigned an efficiency adjustment as described in the chart below. Weighting specifications – Faculty-to-administrator salary ratio

      % Deviation of ration from SREB Peer Group	% Change to Productivity Index score
      Below -20%	-2.0%
      -15.01% to -20%	-1.5%
      -10.01% to -15%	-1.0%
      -5.01% to -10%	-0.5%
      -5% to 5%	0.0%
      5.01% to 10%	0.5%
      10.01% to 15%	1.0%
      15.01% to 20%	1.5%
      Above 20%	2.0%