The General Assembly directed the student credit hour enrollment change funding formula review to examine its accuracy. Evaluation findings indicated the formula is complex, relies on inaccurate enrollment growth estimates, and, as a result, yields inaccurate funding requests. The General Assembly should require UNC system administrators to thoroughly examine and modify the enrollment change funding formula, standardize the enrollment projection process, and hold officials accountable for sizeable projection errors. Second, the UNC system should develop policy and guidelines for enrollment growth funding decisions. Third, the General Assembly should receive annual reports of indicators to hold the system accountable to the public. Finally, performance-based funding should be implemented.
Agency Actions:
- In January 2011, the UNC Board of Governors rescinded its policy of “hold harmless” when a campus does not meet budgeted levels of enrollment. Starting with the 2013–14 academic year, enrollment change funding has been reduced for campuses that have not achieved their enrollment goals.