18.1 MRR Formula and Allocations
18.1.1 MRR Formula
MRR funds are generated annually by the budget formula as a function of the average estimated building replacement cost and total square footage in the University System at each institution. The average building replacement cost is assessed each year, and was most recently valued at $95 per square foot. The formula is funded at approximately 1% of average replacement cost, although the factor also has been subject to periodic adjustments.
All institutional square footage is included in the formula; i.e., auxiliary enterprise funded square footage as well as residential instruction (RI) and other square footage. Although included in the formula, auxiliary enterprise space typically cannot be repaired or renovated using MRR funds. However, special approval may be granted by the Vice Chancellor for Facilities in the event of life safety concerns.
The combination of all square footage in the University System of Georgia generates the total formula amount that is part of the system’s annual budget request. As an example of how the formula works, an institution with 1,000,000 square feet of space would generate an amount in the formula of $950,000 (1,000,000 square feet X $95/square foot X .01).
18.1.2 MRR Allocation
The formula, however, is not the basis upon which funds are allocated to institutions for capital facility repair and rehabilitation. The MRR allocation distributes funds to institutions on the basis of RI square footage, and also includes a factor for age and type of facilities.
Not all funds generated by the MRR formula are initially distributed to institutions. A portion, roughly 3-5%, is set aside to provide for emergencies and contingencies. Institutions may request funding for emergencies that cannot be addressed through regular MRR allocations. Requests for emergency MRR funding should be addressed to the Vice Chancellor for Facilities.