There are two types of revenue in the incentive-based budget model: tuition/fees and other revenue streams.
Net Tuition and Fees
Net revenue for a primary unit is the total amount of tuition and fees minus the unit's share of institutional financial aid.
General tuition is categorized as follows:
- 75% of gross tuition is allocated to the College of Instruction (the primary unit that is teaching the course).
- 25% of gross tuition is allocated to the College of Record (the primary unit containing the major for the student enrolled in the class).
For example, a student with an Accounting major is taking a Fitness Walking course. In this case, the Miller College of Business would receive 25% of the student's tuition for the course as the College of Record. The College of Health would receive 75% of the student's tuition for the course as the College of Instruction.
Fees consist of Program/Course fees, which are fees associated with certain majors and/or courses.
The net revenue calculation in the model uses institutional financial aid. External financial aid (Federal, State, etc.) is excluded.
Institutional aid can be broken into two categories:
- Undergraduate Aid — the amount allocated to each of the academic units based on a college's proportional share of undergraduate tuition received.
- Graduate Aid
- graduate assistant fee remission (based on where the student's stipend is paid from)
- graduate assistant stipends
Other revenue consists of allocated state appropriations and other direct revenue not related to tuition or fees.
The following describes how state appropriations that aren't tied to specific initiatives are allocated:
- Research — an initial $2.5 million will be 'carved out' as an incentive for research based on total grant revenue. Primary units receive their share of the $2.5 million based on their percentage of the total grant revenue. This amount appears in the budget model as "State Appropriations – Research."
- Instruction — 80% of the remaining state appropriations are allocated to primary units based on their share of completed credit hours instructed, irrespective of student grades. This amount appears in the budget model as "State Appropriations – Instruction."
- Student Success — the remaining 20% of the state appropriations are allocated to primary units based on the number of degrees awarded in the following categories:
This amount appears in the budget model as "State Appropriations – Student Success."
- At-risk (students receiving Pell Grants in the year they earned their degree)
- High-impact (degrees considered high-impact by the Indiana Commissions for Higher Education).
Other Direct Revenue
Other direct revenue consists of:
- grants and contract revenue
- sales, services, and other