(a) Diseconomies of scale.

1. (1) Some institutions in the state serve rural areas with insufficient populations to support large enrollments.
2. (2) Adjustments should be included to acknowledge this unique aspect of mission.

(b)

1. (1) The diseconomies of scale adjustment will be recognized by adjusting the comparative year productivity index score of an institution that falls into a specified student enrollment size range.
2. (2) The range is based on the average three-year enrollment for two-year colleges. Adjustment specifications – Diseconomies of scale

   Enrollment Breaks	Adjustment
   Less than 30% of Average	1%
   Less than 50% of Average	2%
   Less than 70% of Average	3%