The Pennsylvania State System of Higher Education’s Board of Governors approved a new allocation formula for state funds at its Zoom meeting Wednesday morning.

The new formula, which would impact local PASSHE schools like Slippery Rock and Clarion universities, would take effect following the approval of the system’s 2022/ 2023 budget in July.

According to Dan Greenstein, chancellor , the new allocation formula would align 75% of state funding toward students and enrollment, while 25% would be put toward core operations of an institution.

“The board has worked for a year on this,” he said. “An allocation formula is essential to funding predictability for an institution. The dollars would be following the student in a significant way.”

As it stands, $472.5 million funds the 10 PASSHE schools. The new formula would be implemented if Gov. Tom Wolf signs legislation to increase PASSHE funding to $552.5 million.

Should PASSHE receive the additional funding, the Board of Governors would implement the new formula for the 2022/2023 school year.

The 75% of funds dedicated to students and enrollment was divided into categories of two year average full-time equivalent students, minority students, students from low-income households and others.