Educational and general expenditures include the functions of instruction and departmental research, extension and public services, educational programs such as workshops and instructional institutes supported by sponsors outside the institution, student services, general administration and expenses, staff benefits, libraries, and operation and maintenance of the physical plant.
Sponsored research, sales and services of education departments, and auxiliary enterprises are not priced by HEPI.
[3] In 2005, Commonfund Institute assumed responsibility for the index and the proprietary model used to calculate HEPI's values from Research Associates of Washington, D.C.
The heaviest weights accompany faculty and clerical salaries and fringe benefits, reflecting their relatively large share in college and university budgets.”[3] The regression-based index values are essentially equal to those resulting from complete data.
The resulting timing differences in the underlying data had sometimes led HEPI to seem too high or too low relative to the Consumer Price Index (CPI).