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State support of the Nebraska state colleges: A more relevant method of establishing appropriations
Abstract
This study was conducted to identify an optional appropriations methodology that would correct the existing funding inadequacies and inequities in the State Colleges, under the premise that such problems had been created by the State of Nebraska's current incremental funding model. Information was collected from the other forty-nine State Budget Offices, using a mailed survey. Responses were received from forty-three states. Information on the non-responding states was compiled from a 1986 study conducted by a Michigan Legislative Select Committee on Education. Findings of the survey included: 28% of the states are using an incremental method; 24% are using a formula funding model; 26% are using a combination of incremental and formula funding procedures; and 22% use other distribution processes. The "other" includes such methodology as zero-based budgeting, performance funding, marginal cost funding and decision packages. The advantages of the incremental funding model are: flexibility and autonomy for the institution; a simplified budgeting process; and bureaucratic control over the expenditure of funds. Disadvantages include: past inequities remain uncorrected; the quality of programs is not measured; and the mechanism is subject to political whims. The advantages of the formula funding process are: allows for an equitable distribution of scarce resources; provides a common set of criteria so adequacy is realized; and reduces conflict between higher education institutions. Disadvantages are: formulas may be inaccurate; past inequities may not corrected; and enrollment-driven formulas may result in inadequate funds in a declining enrollment environment. An analysis of performance funding and marginal cost funding was not possible with the shortage of current state users but many of the states are beginning to incorporate objective measurements in their funding process through use of incentive funding programs. This researcher concluded that embodying specific factors of the formula funding model in the current incremental funding process would begin to address the funding inequities and inadequacies found in the State College System.
Subject Area
School finance|Higher education
Recommended Citation
Nelson, Donna Dee, "State support of the Nebraska state colleges: A more relevant method of establishing appropriations" (1989). ETD collection for University of Nebraska-Lincoln. AAI9013618.
https://digitalcommons.unl.edu/dissertations/AAI9013618