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The process of planning and budgeting for public institutions has been a topic of recent interest as budgetary constraints have mandated reduced funding for state agencies and publicly funded educational institutions. The most recent budget outlook in Minnesota suggests that funding for the University of Minnesota will be reduced significantly in the next biennium. This outlook is renewing the call for increased efficiency and cost control for publicly funded educational institutions such as the University of Minnesota. The authors have been involved with a project in which cost functions and economic relationships were examined within the College of Agricultural, Food and Environmental Sciences at the University of Minnesota. This paper is an extension of these efforts and attempts to address the questions relating to instructional revenue sharing.


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