Wyo. Code R. 057-0001-5
Effective Date: 09/12/2001 to 01/10/2002
Rule Type: Expired Emergency Rules & Regulations
Reference Number: 057.0001.5.09122001
Wyoming Statute 21-18-202(c) assigns the Commission's administrative functions.
This chapter governs the Commission's administrative functions.
(a) The Commission adopted the Base-Plus Funding Allocation Model June 23, 1999 to achieve funding equity among the colleges and to secure funding parity with comparators. The base allocation is intended to support the operation and maintenance of the college system and to address equity and parity. The plus allocation is intended to address incentive or performance funded initiatives. Emergency rule changes adopted on September 6, 2001 modify the funding allocation model.
(b) Comparator institutions are selected from the most recent IPEDS database, and are chosen for their similarity to all 7 Wyoming colleges. Wyoming colleges are comprehensive community colleges and hence, should be compared to other comprehensive community colleges. The defining criteria of comprehensive community colleges begins with the following characteristics: two-year, public, post-secondary institutions in the 50 states that are not service schools and not in outlying areas outside the U.S. proper, and that participate fully in Federal Title IV programs, not as a branch of a participating main campus. Colleges having the following characteristics were deleted to increase the similarity of the comparators to Wyoming's colleges: 1) colleges not offering associate degree awards, and those that report offering the degree but did not actually award any during the previous two years; 2) colleges with less than 25 % of their 1 to 4-year awards being associate degrees (as a two-year average of the most recent IPEDS); 3) colleges having no certificate programs of at least one but less than two years, and those that awarded no such certificates over the same two years; 4) colleges that report no occupational offerings, as well as those that report no academic offerings; 5) colleges with no self-funded library; 6) colleges with no regional accreditation; 7) colleges with zero awards in either skilled trades or health fields and with more than half of their awards in either of those areas; 8) colleges that are not on a semester-based calendar system; 9) colleges in large metropolitan areas (whether central city or urban fringe); 10) historically Black colleges, tribal colleges, and those with 50% or more minority students (Blacks, Native Americans, Hispanics, and Asians); 11) colleges with zero part-time faculty or zero institutional financial aid (using two-year averages from the most recent IPEDS); 12) colleges with an average FTE of less than 500 or more than 3,000, those with an average fall headcount of less than 500 or more than 5,000, those with an average 12-month unduplicated headcount of more than 9,000, those with a dormitory capacity greater than 900, and colleges reporting a replacement cost for their buildings of less than $10 million or more than $110 million (all these size characteristics being based on two-year averages); and 13) colleges that regression diagnostics reveal have a pronounced influence on the regression slopes in predicting revenue per FTE.
(i) The resulting comparator colleges are entered into a multiple regression analysis. A&G (Academic and General) revenue is defined as the difference between total and auxiliary rev- enues on the IPEDS Finance Survey. The final regression equation, using A&G revenue per FTE (most recent two years averaged) as the dependent variable, consists of the following predictor variables: 1) natural log of average student FTE; 2) natural log of average building replacement cost; 3) percent of students who are non-minority; 4) average percent of full-time, degree-seeking students on financial aid; 5) average percent of full-time, degree-seeking students with student loans; 6) average percent of headcount faculty who are part-time; 7) average percent of fall headcount students who are part-time; 8) average percent of 1 to 4 year awards that are associate degrees; and 9) percent Associate, squared.
(ii) Each Wyoming college has a target revenue per FTE, namely its predicted revenue from the final regression presented in the paragraph above. The difference between the actual revenue per FTE and the target revenue per FTE gives the dollars per FTE that the college is either under-funded or over-funded, relative to the average revenue of comparators with the same combination of characteristics on the predictor variables in the regression. Alternatively, that difference is increased by the following amount: 0.675 times the regression standard error of estimate. This alternative calculation gives the dollars per FTE of under-funding or over-funding, relative to the 75th percentile of the comparators. Multiplying either of these dollar-per-FTE differences times the college's average FTE enrollment yields the total dollar amount of yearly under-funding or over-funding for each college.
(iii) The system-wide, biennial parity gap is calculated as two times the sum of all the negative dollar amounts (the under-funding amounts) calculated in one of the two ways detailed in the preceding paragraph.
(iv) The Commission shall accomplish subsequent reviews. Within one year of the adoption of the revised funding model, the Commission, in consultation with the colleges, will determine whether an immediate review and possible further revisions of the comparator pool and/or the regression variables are needed. Two years thereafter, and every fourth year after that, such a review shall be undertaken, with revision of the comparator pool and/or the variables in the regression equation if the review indicates that revisions are needed.
(c) There are two components to the Funding Allocation Model utilized for the colleges. The first component is the 'Parity Comparator Calculation' which establishes the system-wide dollar amount of under-funding, if any, relative to the pool of comparators. The second, or 'Equity,' component allocates new state and local appropriations among the colleges. Institutional revenues remain with the colleges. The Funding Allocation Model revised September 6, 2001 shall be effective September 6, 2001 for developing the 2003-2004 Biennial Budget Request.
(d) The Parity Comparator Calculation is derived as described in section 3(b), above.
(e) The Equity Comparator Calculation is derived as follows:
(i) Community service and continuing education revenues are generally related to self-supporting programs, and revenues are usually offset by approximately equal expenditures. Fees collected by the colleges vary widely across the system, and they are usually subject to implied restrictions. To neutralize varying college policies in these areas as incentive/disincentive factors in allocation, they are excluded in the comparator calculation. For similar reasons, revenues obtained from several other sources are also excluded as follows:
(ii) The equity calculations on Wyoming's colleges begin with the Total Current Funds Revenue from their detailed budget submissions (which excludes Other Funding Sources—Carryover, Transfers, Other), and the following items are subtracted from this total before equity comparisons are made (if they are included in the original total): Sales & Services of Auxiliary Enterprises; Gifts, Grants, & Contracts (Federal, State, Local, and Private); Endowment Income; BOCES/BOCHES Revenue; Community Service and Continuing Education Revenue; Student Fees; and Other Fees.
(iii) From the budget reports, the first year's snapshot is fine-tuned by taking into account the next recapture/redistribution anticipated in the new fiscal year (reflecting local revenue changes in the first year), as well as any other known changes in biennial funding.
(iv) The result of these subtractions and additions is called the 'Adjusted' A&G revenue. Dividing the Adjusted A&G Revenue by the refined FTE figure for each college (obtained from their enrollment reports to the Commission) gives the adjusted revenue per FTE used in the equity calculations only. Refined FTE is taken from the enrollment reports on Wyoming's colleges, calculated as the Student Credit Hour total for the first year of the biennium (summer, fall, and spring), divided by 24.
(f) The Funding Allocation Model determines the allocation of funding among the colleges using the Adjusted Revenue/FTE expressed as a proportion of the target revenue per FTE as determined in the parity calculations. This proportion is termed the equity ratio.
(i) The Funding Allocation Model utilizes the two major revenue sources: state appropriations and local appropriations. The total of the two revenue sources in the standard budget for the biennium is the foundation for the calculation.
(ii) New funding may be positive or negative. If negative, as in projected local revenues, the allocation is shared proportionately among all colleges.
(iii) Unless new state appropriations are restricted, or the expenditure specified in some manner, new state appropriations and new positive local appropriations shall be allocated 50% to parity (proportional allocation) and 50% to equity allocation.
(iv) Parity allocation is made according to the distribution percentage of the total state and local revenues for each college, as established on June 30 of odd-numbered years in the budget request year.
(v) Equity allocation is intended to equalize the funding position of colleges across the Wyoming system. Fifty percent of new state or local appropriation funding is utilized. The college with the lowest equity ratio is funded first, to bring that college to the equity ratio of the next college, then both colleges are provided equity adjustments in the attempt to reach the level of the next college, and so on.
(vi) For parity or equity adjustments in local revenues, state appropriations equal to the local appropriations are recaptured from the colleges and redistributed as detailed in 3(f)(i) through (v).
(g) As an adjunct to the funding allocation model, revenues received by the Commission's Contingency Reserve Account, to be utilized only for facility emergency repairs and/or preventive maintenance, shall be distributed as follows:
(i) The distribution is made by gross square footage for Education and General Facilities (excluding gross square footage of auxiliary facilities) as of June 23, 1999.
(ii) Established with the initial base for the college system are the following Contingency Reserve Account percentages: Casper, 19.59%; Central, 10.25%; Eastern, 7.06%; LCCC, 19.72%; Northwest, 13.65%; Northern, 11.55%; and Western, 18.19%.
(h) Subsequent changes to square-footage by any college will not subsequently alter the distribution percentages established in the initial calculation of the base.
(i) Actual distribution of contingency reserve funds will depend upon receipt of funds by the Commission. Distribution to the colleges will be made as the Commission determines.
(j) The funding allocation model may be reviewed by the Commission as necessary and proposed revisions recommended for rules.
(a) The Commission shall prepare a consolidated budget request for state assistance, including state funding for Commission programs, the community colleges, and Wyoming Public Television in a format determined by the Department of Administration and Information.
(b) Requests for state appropriations to fund the regular support and operation of the colleges shall be developed utilizing a Commission adopted model.
(c) The Commission shall hold at least one public budget hearing for the community colleges, after which the consolidated request for state assistance shall be submitted to the Governor.
(d) The Commission adopted the Base-Plus Funding Allocation Model June 23, 1999 and revisions of September 6, 2001 to achieve funding equity among the colleges and to secure funding parity between all of Wyoming's colleges and their comparator pool. The Budget Request Model is linked to that concept.
(e) There are two components to the Budget Request Model as it relates to funding for the community college system: the Standard Budget Request and the Exception Budget Request.
(f) The Standard Budget Request is developed as follows:
(i) Determine community college funding as of June 30 in the odd-numbered year of the budget request development as shown on the Biennial Funding Report. The distribution percentage of total state and local appropriations is calculated and is the basis for proportional allocations for the next biennium.
(ii) Identify adjustments to the June college funding amounts, such as supplementary state appropriations, changes in the projections for local appropriations, changes in other anticipated revenues for the colleges, and one-time funding. The identified amounts may be recalculated to determine a biennial amount. Add or subtract these amounts to the June 30 funding.
(iii) After adjustments are made to the June 30 funding, the result is the Standard Budget Estimate for the ensuing biennium.
(iv) The total state and local appropriations are calculated and become the base for the request for equity and/or parity adjustments in the Exception Budget Request.
(g) The Exception Budget Request for equity/parity is developed as follows:
(i) Exception budget requests for equity and parity are calculated utilizing the comparator information developed in the “Parity Comparator Calculation,” Rules Chapter 5, Section 3 (b).
(ii) If funded by the legislature, new funding would be allocated as described in the funding allocation model.
(h) Standard and Exception Budget Requests for other programs assigned to the Commission are developed in consultation with the Commission, the colleges, and the Budget Division of the Department of Administration and Information.
(i) The Commission may seek additional funding from state or other sources to support incentive and/or performance funds that address statewide initiatives.
(j) The executive director will report to the Commission and the community colleges on action taken by the Governor and the legislature on the request for state appropriations.
(k) The Budget Division of the Department of Administration and Information is not bound by the provisions of this section.
(a) State funding for the assistance of community colleges shall be allocated by the Commission to the community colleges on the basis of the funding allocation model approved by the Commission, unless otherwise directed by the legislature.
(b) Disbursements of state appropriations shall be made by the Commission to the community colleges in accordance with the funding allocation model or other legislative instructions and at times and in amounts determined by the Commission.
(c) Unless otherwise specified by the Commission, payments to the community colleges will be made on or about July 15, September 15, December 15, and March 15 of each fiscal year in the biennium.
(d) Unless otherwise specified by the Commission, payments to the community colleges shall be made in the amounts of 15%, 15%, 10%, and 10% of the total amount of state appropriations designated for each college on the respective dates of each fiscal year in the biennium.
(e) Contingency reserve account funds shall be disbursed at times determined by the Commission.
(f) Any additional state funding appropriated to the Commission for distribution to the colleges will be disbursed at times and in amounts to be determined by the Commission.
“A biennial funding report shall be provided by each community college to the community college commission at the beginning of each biennium in a form and format determined by the commission. Any amendments to the report shall be provided to the commission immediately after adoption by the board.” (W.S. 21-18-205(b))
Commission operations are governed by Chapter 2, Commission Rules.
The Commission shall collaborate with college trustees, college administrators, the Governor’s office, and the legislature to determine statewide priorities that could be addressed by the college system.