Higher Education Funding
Here you will find the Forecast and Historical General Revenue Distributions for the Arkansas Public Institutions of Higher Education. These charts show the General Revenue distributed (or in the case of forecast, expected to be distributed) to Arkansas's Public Institutions of Higher Education.
There are two models that determine Higher Education funding in the state of Arkansas. The state uses a Need-Based Model in tandem with a Performance Based Model. The Department of Higher Education is tasked with making recommendations to state lawmakers regarding budgets of public institutions of higher education. For a full detailed look at these recommendations, you can view our budget recommendations archive.
The Need-Based Model considers a variety of factors that affect the cost of operating an institution of higher education to determine how much funding the institution would need to operate. This number provides a guide for lawmakers to determine how much state revenue should be contributed to a particular institution. Universities and colleges are not currently funded at 100% of need. Institutions must find revenue from other sources (tuition, grants, donations) to meet operational needs.
The Performance Funding Model considers several outcomes that institutions have been tasked to improve upon. Institutions that have not met the performance outcomes risk losing a percentage of their base state revenue funding. Any money that is lost by an institution is then reallocated within the higher education budget.