Wyo. Code R. 057-0001-5
Effective Date: 06/21/2004 to 11/08/2004
Rule Type: Superceded Rules & Regulations
Reference Number: 057.0001.5.06212004
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 were selected from the most recent IPEDS database as of August 1, 2001, and were 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 those 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); in addition colleges that regression diagnostics reveal have a pronounced influence on the regression slopes in predicting revenue per FTE will be deleted from the comparator pool when the model is run
(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 current funds revenue and auxiliary revenues on the IPEDS Finance Survey (pre GASB 34/35 implementation), or as “total operating revenues” plus “total non-operating revenues” plus “discounts and allowances applied to tuition and fees” minus “sales and services of auxiliary enterprises” (post GASB 34/35 implementation). WPTV will be classified as an auxiliary and the associated revenues will not be included in A&G revenue. Additional mill levy funds “above the five mills” designated for repair and maintenance or capital construction will be classified as capital revenues and will not be included in A&G revenue. 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 (pre GASB 34/35); 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 first major awards that are Associate degrees; and 9) percent Associate, squared. Post GASB 34/35, the building cost used for variable (2) in this list will be ending book value rather than replacement cost. In the IPEDS data for 2002, for the subset of comparators that have already implemented GASB 34/35, building replacement value as of 2002 will be calculated as replacement value in 2001 multiplied by the proportional difference between ending book value and beginning book value for 2002.
(ii) Consistency of comparator data will be sought by examining the distributions of all the regression variables, comparing them between years, and identifying outliers. Anomalous data elements that cannot be otherwise resolved will be recoded to missing data. In constructing the two-year averages of the regression variables, missing data in either year will be replaced by the value for the other year. Any remaining missing data will be handled through mean substitution in the regression analysis. Consistency of reporting across the Wyoming colleges will be sought through sharing and comparing the figures reported to IPEDS, with corrections made to the data as needed before running the model. Missing data will not be permitted from any Wyoming college on any of the regression variables.
(iii) Each Wyoming college has a target revenue per FTE, namely its predicted revenue from the final regression presented in paragraph 3(b)(i) 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.
(iv) 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. Using the IPEDS data in this way necessarily yields a parity gap figure as of the end of the preceding biennium, based on total A&G revenue. To update that figure to the current biennium, data will be sought from the Chronicle of Higher Education or another reputable source. The change in funding for higher education nationwide will be compared to the change in Wyoming's community college funding over the same time period. The resulting value will be used to calculate an approximately updated figure. The updated figure will be less than the original figure if Wyoming's community colleges received a percentage increase in funding greater than the national increase (or a decrease that was less than the national decrease). The updated figure will be greater than the original figure if Wyoming's community colleges received a lower percentage increase (or a greater decrease) than the national average. In either case, the result will then be further adjusted to approximate the amount of the gap that reflects revenues available to support operating costs. The final adjustment will be calculated by multiplying the updated parity gap figure times the proportion of the comparators' total A&G revenue not derived from gifts, grants, and contracts from any source, Federal, state, local, or private.
(c) 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.
(d) 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. This component is described in Section 3(b), above. The second distribution component concerns the allocation of 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. Revisions to the model made by May 1, 2004 shall be effective for the 2005-2006 biennial budget. In future biennia, the same Model, including any further revisions subsequently adopted on or before
September 30 of each odd-numbered year, shall be effective for the biennial budget request made in that year.
(e) The Distribution Calculation is described below, based on the principle of base-forward. Funds restricted for health insurance premium reimbursement as of July 1, 2002 will not be included as part of the base forward calculation. Excluding such health insurance benefit funds, if the projected total of state and local appropriations for the community college system for the coming biennium falls short of the total for the current biennium, then each of the seven college's budgets will be decreased to make up the shortfall, in proportion to their current base budgets. If the projected total equals or exceeds the current total, then each college's current base budget will be carried forward into the coming biennium, with the additional amount in state and local appropriations distributed among the colleges on top of those base budgets. New funding is defined as the amount (if any) by which the total state and local appropriation for the upcoming biennium (excluding health insurance premium funding) exceeds the total for the current biennium. Subject to the triggers described in Section 3(e)(x) below, part of this new funding will be distributed in proportion to the current base budgets, and part will be distributed with the objective of achieving equity in funding among the colleges.
(i) The Proportional Base: For purposes of establishing 'base forward' state and local revenues, certified valuations as of 8/1 for the 2nd year of the current biennium will be used, projected at 99%. The paragraphs that follow use the 2003-04 biennium as an example, and mention FY 2001 and FY 2002. In future biennia, the calculations will be exactly analogous but will use figures from the appropriate fiscal and calendar years.
(ii) For the 2003-04 base forward, all colleges will submit revisions to their August 2001 local revenue projections according to the formula that follows, to enhance reporting consistency. State aid will be recaptured and redistributed based on these new projections to establish base forward, but recapture/redistribution will not affect the scheduled state aid disbursements for FY-2002. Total local revenues, associated with the standard 4-mill levy, will be projected for the 2001-02 biennium, using the following formula:
(FY-2001 Actual 4-Mill Levy Revenue) + (CY-2001 Certified Assessed Valuation X .004 X 99%) + 2(FY-01 Vehicle License Revenue) + 2(FY-01 Other Local Revenues) = Estimated Biennial 4-Mill Local Revenues.
(iii) Each college's state and local revenue base forward, as a percentage of the system-wide base forward, establishes that college's proportional share of any budget decrease for the coming biennium, as well as its proportional share of any new state and local funding not reserved for equity distribution.
(iv) The Equity Base: For purposes of equity comparisons among the colleges, the base will be considered to include not only state and local appropriations, but also institutional revenues. This equity base will start with the proportional base previously defined, and then add tuition revenue, fifth mill and related local revenue, and other institutional revenue. Specifically,
(v) Biennial credit tuition revenue will be projected by doubling the first year's actual tuition revenue (for example, FY-2001 for the current biennium) and adding in any scheduled 2nd year tuition increases (4.2553191% of FY-2001 credit revenue for FY-2002).
(vi) Fifth mill levy, related vehicle license, and other local revenues will be projected for the biennium, as follows (again using the current biennium as an example):
(FY-2001 Actual 1-Mill Levy Revenue) + (CY-2001 Certified Assessed Valuation X .001 X 99%) + 2(FY-01 Vehicle License Revenue) + 2(FY-01 Other Local Revenues) = Estimated Biennial 1-Mill Local Revenues.
(vii) Other revenue sources—investment income, gate receipts, miscellaneous, etc, —will be estimated for the biennium by doubling the related first year revenue received, using only Fund 10 (Operating) and Fund 11 (Optional Mill) amounts.
(viii) The result of these additions is called the 'Equity Base' revenue. Dividing the Equity Base Revenue by double 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.
(ix) The Funding Allocation Model determines the allocation of funding among the colleges using the Adjusted Revenue/FTE, annualized and expressed as a proportion of the target revenue per FTE as determined in the parity calculations. This proportion is termed the equity ratio.
(x) 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 proportional allocation and 50% to equity allocation, or in some other fractions as determined by the triggers described next. Health insurance premium benefit funding is considered restricted and not included as a new state appropriation (new funding).
The trigger determining the fraction on new money to be distributed proportionally and the fraction to be distributed for equity is calculated as follows:
Calculate the 'split percentage' as the total biennial dollars needed to bring the equity ratios of the six lowest colleges up to the highest equity ratio, relative to the total biennialized base-forward parity gap at the median, without updating or adjusting for operating revenues. (If the parity gap is zero, so that division is impossible, define the split percentage as equal to 100.) (The split percentage is calculated only once, at the beginning of the biennium, and applied throughout the remainder of the biennium.) Then locate the resulting split percentage within the following table of cut-off triggers, and distribute new money for equity or proportionally according to the percentages indicated:
| less than 10% | 0 | 100% |
|---|---|---|
| 10 to 34.99% | 25% | 75% |
| 35 to 65% | 50% | 50% |
| 65.01 to 90% | 75% | 25% |
| more than 90% | 100% | 0 |
(xi) Equity allocation is intended to equalize the funding position of colleges across the Wyoming system. 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.
(xii) For proportional or equity adjustments in local revenues, state appropriations equal to the local appropriations are recaptured from the colleges and redistributed.
(f) 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%.
(g) Subsequent changes to square-footage by any college will not subsequently alter the distribution percentages established in the initial calculation of the base.
(h) 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.
(i) As another adjunct to the funding model, the funding request for health insurance premium benefits will be calculated as follows:
(i) For the 2005-2006 biennium, the initial insurance premium benefit fund pool will be $10,598,636 based on plan enrollment numbers as of the May 2003 open enrollment period, and projected insurance rates for December 2003. For the 2007-2008 biennium and beyond, plan enrollment numbers as of January of odd numbered years, and projected health insurance premium rates for December of the same year will be used to calculate the amount of insurance premium benefit funding to be pooled for separate distribution.
(ii) Distribution will be based on a cost reimbursement basis at the approved state rate of coverage per eligible employee. Each college will submit a quarterly reimbursement request on an approved WCCC form.
(iii) The Commission will evaluate the sufficiency of funding in the health insurance premium pool on a quarterly basis. The Commission will work with the department of A&I to identify supplemental funding options for health insurance premium benefit costs if pooled funds are projected to be insufficient. The Commission will submit a supplemental budget request for health insurance premium benefit costs if other funding options are not available and pooled funds are projected to be insufficient.
(iv) If funds in the health insurance premium benefit pool fall short of actual costs and supplemental funding to meet this shortfall is not approved, each of the seven colleges' reimbursement will be reduced to make up for this shortfall in proportion to the number of eligible employees as of January of even numbered years.
(v) If state appropriated funds restricted for health insurance premium benefits exceed actual costs for the biennium, this amount will revert to the general fund.
(j) The funding allocation model and/or its adjuncts 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 August 1 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 August 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 August 1 funding.
(iii) After adjustments are made to the August 1 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 proportional adjustments in the Exception Budget Request.
(g) The Exception Budget Request is developed as follows:
(i) Exception budget requests are calculated utilizing the comparator information developed in the "Parity 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 and its adjuncts approved by the Commission, as outlined in Section 3 of these rules 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.