University of South Carolina exerts more control over college funding - Ryan Quinn, Daily Gamecock

In response to state budget cuts, USC has changed the way it funds its colleges and is placing more authority for money allocation in the hands of the provost. From 2004 to 2010, USC’s colleges operated on a model in which their enrollment numbers and the amount their students paid in tuition determined how much money they received. After paying an overhead fee that funded shared services — such as electricity, maintenance, Student Affairsand libraries — the colleges would retain the rest of their tuition dollars and build their budgets around them. This system, dubbed value-centered management, encouraged colleges to be entrepreneurial in seeking to expand their programs and enrollment because more students meant more money. But the size of incoming freshmen classes has been capped for at least the next three years because officials say the university has no more room to grow.