The objectives of this study were: (1) to develop a procedure for categorizing statewide higher education funding formulas; (2) to use that procedure to categorize the statewide funding formulas utilized by fifteen selected states; (3) to simulate the implementation of at least one statewide funding formula from each category using 1972-73 New Mexico data; and (4) to develop several alternative model funding formulas for financing higher education in New Mexico.
The researcher solicited copies of higher education funding formulas (and related documentation) from fifteen selected states. An examination of the procedures used within the funding formulas of these selected states (Arkansas, Florida, Georgia, Louisiana, Maryland, Mississippi, Ohio, Oklahoma, Pennsylvania, South Carolina, South Dakota, Tennessee, Texas, Virginia and Washington) revealed that four quasihomogeneous formula categories could be identified. A representative statewide formula was selected from each category for simulated implementation in New Mexico using 1972-73 data. The Tennessee, Louisiana, Oklahoma and South Carolina statewide funding formulas were chosen for simulation in New Mexico. These simulations revealed that the procedures used within two of the statewide funding formulas (Oklahoma and South Carolina) interacted with institutional data for the six public New Mexico universities in a similar pattern. Based upon this finding, the researcher constructed three funding formula models for possible use in New Mexico. These computer simulation models allow for the rapid simulation of alternative funding formulas using New Mexico data.
Several conclusions were drawn based upon the findings of this study:
1. Definite procedural similarities exist among the funding formulas used by selected states.
2. The statewide funding formulas selected for simulated implementation would result in differing levels of support for higher education in New Mexico.
3. Each of the four statewide formulas selected for simulated implementation produced a distinct pattern of funding among the six New Mexico universities.
4. The procedures used within the four statewide formulas selected for simulation interacted with institutional data for the New Mexico institutions in three distinct patterns.
5. It is feasible to construct computer simulation models to allow for the rapid simulation of alternative versions of specific funding formulas.
This study also made possible several recommendations. First, the researcher recommends that studies be conducted to determine the interaction of institutional data with procedures used within other representatives of the four formula categories defined in this study. Second, it is recommended that the study be replicated using New Mexico data for other recent fiscal years. Finally, the researcher recommends that the New Mexico Board of Educational Finance utilize the computer simulation models constructed as a part of this study to develop a specific statewide higher education funding formula for implementation in New Mexico.
First Committee Member (Chair)
Second Committee Member
Third Committee Member
Rawson, Thomas M.. "A Study to Develop Alternative Statewide Higher Education Funding Formula Models for Possible Use in New Mexico." (1975). https://digitalrepository.unm.edu/educ_teelp_etds/314