The Oregon University System has developed a resource allocation model intended to equitably distribute state funding based on university mission and enrollments by level of instruction. The methodology is grounded on identifying and achieving the median of peer university funding. A primary feature of the model is that dollars (general fund and tuition and fees) follow the student to his or her enrolling university and are not redistributed to other system programs and universities. The model rewards campuses for meeting or exceeding system and university objectives. Accountability for achieving key indicators and stimulating resident participation is the key ingredient of budget decision making. Ultimately, the peer-based methodology has provided significant latitude to the universities in planning their enrollment and program strategies but within a framework of board, gubernatorial, and legislative anticipation and expectation.
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