PARRIS N. GLENDENING, Governor                                 Ch. 6

(5)     (i) For each board, the marginal costs component shall be the product
of the dollar amount per full-time equivalent student multiplied by the number of
full-time equivalent students at the board's community college or colleges.

(ii) The dollar amount per full-time equivalent student shall be
calculated by dividing [27%] 60% of the total State operating fund for the fiscal year by
the total number of full-time equivalent students at community colleges statewide.

(iii) In determining the marginal costs component for a board, the
number of full-time equivalent students at all campuses and colleges operated by the
board shall be added together.

(6)     (i) [Except as provided in subparagraph (ii) of this paragraph, the]
THE size factor component shall be [determined by dividing and distributing equally
1.75%] A SET PERCENTAGE of the YEAR'S total State operating fund [to each board
which operates a community college or colleges at which the total number of full-time
equivalent students is less than or equal to 80% of the statewide median] AS FOLLOWS:

1.       FOR FISCAL YEAR 1997 1998, 4% OF TOTAL FUNDING;

2.       FOR FISCAL YEAR 1998 1999, 3% OF TOTAL FUNDING; AND

3.       FOR FISCAL YEAR 1999, 2% OF TOTAL FUNDING; AND

4: FOR FISCAL YEAR 2000 AND EACH FISCAL YEAR
THEREAFTER, 1% 2% OF TOTAL FUNDING.

(ii) [For each board which operates a community college or colleges at
which the total number of full-time equivalent students is greater than 80% of the
statewide median but less than or equal to 200% of the statewide median, the size factor
component shall be determined by dividing and distributing equally 0.25% of the total
State operating fund to each eligible board] THE FUNDS AVAILABLE FOR THE SMALL
SIZE FACTOR COMPONENT SHALL BE DIVIDED AND DISTRIBUTED EQUALLY TO
EACH COMMUNITY COLLEGE BOARD THAT OPERATES A COMMUNITY COLLEGE OR
COLLEGES AT WHICH THE TOTAL NUMBER OF FULL-TIME EQUIVALENT STUDENTS
IS LESS THAN OR EQUAL TO 80% OF THE STATEWIDE MEDIAN.

(iii) In determining the eligibility of a board for a size factor
component, the number of full-time equivalent students at all campuses and colleges
operated by the board shall be added together.

(7)     (I) A BOARD SHALL BE ELIGIBLE FOR A HOLD HARMLESS
COMPONENT BEGINNING IN FISCAL YEAR 1998 IF THE SUM OF THE BOARD'S FIXED
COSTS, MARGINAL COSTS, AND SIZE FACTOR COMPONENTS FOR THE FISCAL YEAR IS
LESS THAN THE BOARD'S TOTAL STATE SHARE IN THE PRIOR FISCAL YEAR.

(II) THE HOLD HARMLESS COMPONENT AMOUNT SHALL BE
DETERMINED BY SUBTRACTING THE SUM OF AN ELIGIBLE BOARD'S FIXED COSTS,
MARGINAL COSTS, AND SIZE FACTOR COMPONENTS FOR THE FISCAL YEAR FROM THE
BOARD'S TOTAL STATE SHARE FOR THE PRIOR FISCAL YEAR.

[(i) A board shall be eligible for a wealth factor component if:
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