Journal of Engineering and Applied Sciences
ISSN: Online 1818-7803ISSN: Print 1816-949x
Abstract
The use of formula in allocating funds to meet the financial needs of Higher Education Institutions (HEIs) has been in use by many countries, especially in Europe and by the United States of America since the late 1960’s. The successes recorded in its use, especially the decentralization of financial management of public HEIs, has made it attractive for other nations (developing and the less developed) to embrace the practice. This study reviews the related literatures on the concept of higher education funding models in general and funding formula as a mechanism for funding higher education in particular. The primary aim here is to review the scope and the potentials of deploying formula funding as an allocation mechanism for funding public HEIs and how the various stakeholders of tertiary education can identify how best to distribute public resources effectively and efficiently. Thus, the study discusses the various types of funding formulas in use today and their efficiency in addressing the financial needs of the HEIs. Higher education funding formulas are mathematical expressions containing same variables (e.g., student numbers, enrollments, etc.) that are used to determine an institutions budget. The study is expected to provide an insight into the characteristics and the impact of formula funding mechanism and provides some guides on how to select a funding mechanism that will be efficient, equitable and transparent.
How to cite this article:
Kofar-Sauri Bello Garba and Abd Rahman Ahmad. Higher Education Funding Mechanisms: Characteristics and
Impacts of Formula Funding Mechanism.
DOI: https://doi.org/10.36478/jeasci.2017.1440.1447
URL: https://www.makhillpublications.co/view-article/1816-949x/jeasci.2017.1440.1447