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

1. (1) Effectiveness (ninety percent (90%) of formula);
2. (2) Affordability (ten percent (10%) of formula);
3. (3) Adjustments; and
4. (4) Efficiency (plus or minus two percent (+/-2%) of formula).

(c)

1. (1) At this time, postcompletion success metrics are not included in the formula but will be when adequate data is available.
2. (2) It has been determined that the noncredit workforce training/education metric will not be incorporated into the productivity funding model.
3. (3) However, the addition of this metric will continue to be evaluated in the future.
4. (4) 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.

(d)

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 diseconomies of scale 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.