ERIC Number: EJ981021
Record Type: Journal
Publication Date: 2012
Abstractor: As Provided
Reference Count: N/A
Efficiency-Based Funding for Public Four-Year Colleges and Universities
Sexton, Thomas R.; Comunale, Christie L.; Gara, Stephen C.
Education Finance and Policy, v7 n3 p331-359 Sum 2012
We propose an efficiency-based mechanism for state funding of public colleges and universities using data envelopment analysis. We describe the philosophy and the mathematics that underlie the approach and apply\break the proposed model to data from 362 U.S. public four-year colleges and universities. The model provides incentives to institution administrators to eliminate wasteful spending and increase positive outcomes while maintaining educational quality and research productivity. The institutions in our study spent $96.74 billion, and states would reimburse $88.02 billion. Thus efficiency-based funding would reduce state government expenditures on these institutions by $8.72 billion, or approximately 9.0 percent. Efficiency-based funding is politically viable, as demonstrated by North Carolina's successful use of this approach in pupil transportation operations since 1994. The model will be of interest to state legislators, state education officials, and others who are concerned with funding formulas for institutions of higher education.
Descriptors: Productivity, Higher Education, Educational Quality, Transportation, Public Colleges, State Government, State Aid, Efficiency, School Effectiveness, Educational Policy, Educational Finance, Financial Policy, Funding Formulas, Politics of Education, State Policy
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Publication Type: Journal Articles; Reports - Descriptive
Education Level: Higher Education; Postsecondary Education
Authoring Institution: N/A
Identifiers - Location: North Carolina