Growth to colleges is based on three key components:​

• Student Credit Hour (SCH) Growth - For fall and spring terms 60% is allocated to the college of instruction, and 40% to the college of enrollment. For summer term 100% is allocated to the college of instruction.
• Indirect Cost Recoveries (ICR) - Colleges receive 30% of ICR, in accordance with Institute policy.
• Provost’s Strategic Allocation Pool - 15% of the colleges’ new revenue is reserved by the Provost for strategic investments within the colleges

Colleges continue to receive 30% of ICR, consistent with Institute policy. The remaining ICR is allocated to non-college units, using a formula informed by Georgia Tech’s internal rate study. This study identifies each unit’s research-related effort and non-personnel services (NPS) expenses related to research support.​

The non-college allocation is intended to:

• Support increased research-related workload
• Fund cost-sharing commitments
• Provide resources for faculty startup and research initiatives

Units may request to carry forward up to 3% of their General Operations Original Base Budget each fiscal year. For full policy details and carry forward templates, visit the Carry Forward page on the Budget Office website.​​

Budgets for non-college units are determined using a defined set of activity-based drivers. These drivers link each unit’s funding to changes in the populations they serve or the activities they support, ensuring that budgets grow or shrink in alignment with demand.

This approach helps maintain a consistent level of service across the Institute. Executive leaders retain discretion to allocate the funds within their respective portfolios based on institutional priorities.

The Hybrid Allocation Model primarily focuses on resident instruction. While direct research is outside its scope, the model does affect:

• ICR distribution, via an annual allocation based on the Institute’s overhead rate
• Potential development of future research incentives