R742, Dedicated Capital Project Allocation Formula

R742-1. Purpose: To provide the methodology for how the Board of Regents will determine the amount of money to allocate to each institution for dedicated capital projects appropriated by the State legislature as required by statute including how the Board will measure each USHE institution’s fulfillment of the statutory factors and the relative weight assigned to each factor.

R742-2. References

2.1. Utah Code §53B-7-706 (Performance Funding) 

2.2. Utah Code §53B-22-201 (Capital Developments)

2.3. Policy and Procedures R701, Capital Facilities

2.4. Policy and Procedures R706, Capital Facilities Master Planning

2.5. Policy and Procedures R741, Non-dedicated Capital Project Prioritization Process 

2.6. Policy and Procedures R743, Process for Institutional Use of Dedicated Capital Project Funds

2.7. Policy and Procedures R751, Institutional Facilities Space Utilization

R742-3  Definitions

3.1. Capital Development: This policy adopts the definition established in Utah Code 63A-5-104(1)(a). 

3.2. Dedicated Project: a capital development project for which state funds from an institution’s formulaic allocation under Utah Code 53B-22-201 are requested or used.

3.3. Higher Education Capital Projects Fund: a capital projects restricted fund created by the state legislature to receive appropriations for USHE dedicated projects. 

R742-4. Regent Allocation of Funds: Each year the Board shall determine the amount of funding each USHE institution shall receive for dedicated projects from the annual legislative appropriation to the Higher Education Capital Projects Fund.

R742-5. Dedicated Capital Project Allocation Formula: Unless otherwise directed by the legislature, the Board shall allocate the annual legislative appropriation according to the following measures of the statutorily required factors with their associated weights:

5.1. Enrollment:  Weighted at 20 points. The measure is the most recent five-year average of Budget-Related full-time equivalent (FTE) students excluding online and concurrent enrollment FTE students.  Points are awarded proportionate to each institution’s five-year average.

5.2. Performance:  Weighted at 15 points. The measure is the sum-product of the percent of award in each performance category required by Utah Code 53B-7-706 and the weights given by the Board for the most recent performance funding allocation.  Points are awarded proportionate to each institution’s weighted performance.

5.3. Projected Growth in Student Population: Weighted at 15 points. The measure is the estimate of the number of 18-24 year-old students each USHE institution will accommodate based on ten-year population projections of Utah counties and the number of students from each Utah county currently enrolled in a USHE institution.  Points are awarded proportionate to the total number of 18-24 year-old students each institution is projected to accommodate in the next ten years.

5.4. Square Feet per FTE:  Weighted at 15 points. The measure is the current institutional space inventory for classrooms, teaching laboratories, and study/library space divided by the number of Budget-Related FTE excluding online and concurrent enrollment FTE students.  Points are awarded proportionate to the institutional square feet per FTE calculations relative to the institution with the most square feet per FTE in each of the three types of space.

5.5. Facility Age and Condition:  Weighted at 20 points. The measure is the product of the square feet, average age (adjusted for major remodels), and average condition (scored from 1 to 5 with higher numbers representing better condition) of non-auxiliary institutionally-owned buildings valued over $3.5 million as reported in the annual building inventory.  Points are awarded proportionate to each institution’s calculated score.

5.6. Utilization:  Weighted at 15 points. The measure is the classroom Room Utilization Rate (RUR) multiplied by the Seat Occupancy Rate (SOR) from the most recent utilization report for each USHE institution.  Points are awarded proportionate to each institution’s utilization rate.