Sources of Funds:
State Formula Funding
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•Instructional  and Operations Formula
•State Funding is based on a weighting of Student Credit Hours (SCH) by:
–Level of course (Lower/Upper/Masters/PhD)
–Discipline
•Teaching Experience Supplement
•Additional weight of 10% applies for those undergraduate SCHs taught by tenured or tenure track faculty
•Infrastructure Support Formula
•Separate formula (based on utility cost and ft2 of E&G space) for Operation & Maintenance of Plant
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UTSA The University of Texas at San Antonio
Basically formula funding works by appropriating money per weighted SCH.
   We  get different levels of funding for lower division courses, upper division courses, masters and PhD SCH.
   We also get different levels of funding for different disciplines (I.e. more for engineering than liberal arts).