The present paper tackles the issue of the higher education funding system in Slovenia. Its main attribute is that institutions are classified into study groups according to their fields of education, and funds granted by the state are based on their weights or study group factors (SGF). Analysis conducted using data envelopment analysis tested whether members of the University of Ljubljana are classified into groups according to their relative technical efficiency and SGF values are aligned with the relative differences between them. Results confirm the heterogeneity of the study groups, the inappropriate formation of one group, inaccurate classification of institutions and that the SGF values of different study groups are too high relative to the base group. (Contains 3 tables, 2 figures, and 2 resources.)