ERIC Number: ED464667
Record Type: Non-Journal
Publication Date: 1997-Apr-18
Reference Count: N/A
Assessment of the Funding Formula Used by the North Carolina Community College System: Economy of Scale Supplemental Report.
North Carolina Community Coll. System, Raleigh.; MGT of America, Inc., Tallahassee, FL.
In its phase one report, MGT of America, Inc., a management research and consulting firm, recommended several improvements in the funding model used by the North Carolina State Board of Community Colleges. In addition to an overall call for a simplified approach to presenting the financial needs of the 58 colleges, the report identified several aspects of the current funding model that required further review, two of which were the sliding scale for curriculum instruction (SSCI) and the base staffing/base funding provision for instructional and administrative support (BSBF). Each issue attempts to address the concept of "economy of scale," a business term that, when applied to higher education, implies that per-student cost is expected to be lower at a larger college than at a smaller college. The existence of this economy of scale phenomenon presents a special challenge to the NCCCS. The state operates an unusually high proportion of colleges in the smaller enrollment categories--29% of the state's community colleges enroll fewer than 1,000 full-time equivalent students, compared with only 21% regionally, and 15% nationally. This report describes the current funding formula for SSCI and BSBF, discussing their rationale, fiscal impact, evidence of economy of scale in other states, trends, and recommendations. The report ends with a "Next Steps" section, which outlines general areas for further review. Appended are selected excerpts from the MGT report. (EMH)
Publication Type: Reports - Research
Education Level: N/A
Authoring Institution: North Carolina Community Coll. System, Raleigh.; MGT of America, Inc., Tallahassee, FL.
Identifiers - Location: North Carolina