From the ECS State Policy Database Postsecondary Finance--Efficiency/Performance-Based Funding

This database is made possible by your state's fiscal support of the Education Commission of the States (ECS). Most entries are legislative, although rules/regulations and executive orders that make substantive changes are included. Every effort is made to collect the latest available version of policies; in some instances, recent changes might not be reflected. For expediency purposes minimal attention has been paid to style (capitalization, punctuation) and format. Please cite use of the database as: Education Commission of the States (ECS) State Policy Database, retrieved [date]. State Status/Date Level Summary CA Signed into law 09/2012 Postsec. From final bill analysis: Until January 1, 2018, authorizes a California Community College (CCC) district and the University of California (UC) to let any contract for expenditures greater than $50,000 and $100,000, respectively for the purchase of supplies and materials in accordance with "best value" policies as adopted by the local governing board, and UC Regents. Defines "best value." Bill text: http://www.leginfo.ca.gov/pub/11-12/bill/sen/sb_1251-1300/sb_1280_bill_20120928_chaptered.pdf Final bill analysis: http://www.leginfo.ca.gov/pub/11-12/bill/sen/sb_1251-1300/sb_1280_cfa_20120825_133939_sen_floor.html Title: S.B. 1280 Source: www.leginfo.ca.gov CA Signed into law 09/2012 Postsec. From bill summary: The Budget Act of 2012 appropriated $2,053,750,000 for the support of the University of California. This bill requires the University of California, as a condition of receipt of those funds, to report to the legislature by May 1, 2013, on whether it has met an enrollment goal for the 2012–13 academic year. Page 34 of 48: http://www.leginfo.ca.gov/pub/11-12/bill/sen/sb_1001-1050/sb_1028_bill_20120926_chaptered.pdf Title: S.B. 1028 - University of California Funding Contingent on Achieving Enrollment Goal Source: www.leginfo.ca.gov PA Signed into law 07/2012 Postsec. Establishes a new subsection to permit the State System of Higher Education to enter into an agreement with any entity for the cooperative use of supplies and services. Requires all purchases and agreements made pursuant to the subsection to be the result of competitive bidding in accordance with Pennsylvania law. http://www.legis.state.pa.us/CFDOCS/Legis/PN/Public/btCheck.cfm?txtType=PDF&sessYr=2011&sessInd=0&billBody=S&billTyp=B&billNbr=1322&pn=1743 Title: S.B. 1322 Source: http://www.legis.state.pa.us/ IA Signed into law 05/2012 P-12 Postsec. Directs the State Board of Regents to develop a program for implementing continuous improvement methodologies in every undergraduate course offered by the Regents universities. Continuous improvement plans are to be implemented in the fall semester of 2013 for courses with typical annual enrollment of 300 or more and by fall semester of 2014 for courses with typical annual enrollment of 200 or more but less than 300. Plans are to be implemented beginning the fall semester of 2015 for courses with typical annual enrollment of 100 or more but less than 200. Requires the Board of Regents to annually evaluate the effectiveness of the methodologies and improvement plans and submit findings and recommendations in its annual strategic plan progress report. http://coolice.legis.state.ia.us/linc/84/external/govbills/SF2284.pdf Title: S.F. 2284 -- Division VII Source: http://coolice.legis.state.ia.us FL Signed into law 04/2012 Postsec. For the 2012-2013 and 2013-2014 fiscal years, directs the board of governors to review and rank each state university that applies for performance funding based on a formula that bases (1) 25% of a university's score on the percentage of employed graduates who have earned degrees in specified technology/computer-related programs, (2) 25% on the percentage of graduates who have earned degrees in the aforementioned programs and who have earned industry certifications in a related field from a Florida College System institution or state university prior to graduation, and (3) 50% of a state university's score on factors determined by the board of governors to relate to the probability that program graduates will be employed in high-skill, high-wage, high-demand jobs. Directs the board of governors to annually award up to $15 million to the highest-ranked state universities. Directs the board of governors to annually report the rankings and award distributions to the governor and house and senate leadership. Pages 28-30 of 31: http://myfloridahouse.gov/Sections/Documents/loaddoc.aspx?FileName=_h7135er.docx&DocumentType=Bill&BillNumber=7135&Session=2012 Title: H.B. 7135 - Performance Funding for State Universities Source: myfloridahouse.gov FL Signed into law 04/2012 Postsec. Directs each board of trustees of a Florida College System institution to use purchasing agreements and state term contracts or enter into consortia and cooperative agreements to maximize purchasing power for goods and services. Provides a consortium may be statewide, regional, or a combination of institutions, as appropriate to achieve the lowest cost, with the goal of achieving a 5% cost savings on existing contract prices. Directs the board of governors to adopt regulations requiring universities to use purchasing agreements or state term contracts or enter into consortia and cooperative agreements to this end. Bill text (pages 10-11 of 72): http://myfloridahouse.gov/Sections/Documents/loaddoc.aspx?FileName=_h5201er.docx&DocumentType=Bill&BillNumber=5201&Session=2012 Final billl analysis (especially page 4 of 22): http://myfloridahouse.gov/Sections/Documents/loaddoc.aspx?FileName=h5201z.HEAS.DOCX&DocumentType=Analysis&BillNumber=5201&Session=2012 Title: H.B. 5201 - Consortia and Cooperative Agreements Source: myfloridahouse.gov IL Signed into law 08/2011 Postsec. Directs the board of higher education to form a broad-based group of individuals representing specified stakeholders to devise a system for allocating state funding to public postsecondary institutions based upon performance related to student success and certificate and degree completion. Beginning in Fiscal Year 2013, requires that the board of higher education budget recommendations to the governor and the general assembly include performance-based allocations. Requires that these metrics be adopted by the board by rule and be developed and promulgated in accordance with specified principles, including, among others, that the metrics include provisions for recognizing the demands on and rewarding the performance of institutions in advancing the success of students who are academically or financially at risk, including first-generation students, low-income students, and students traditionally underrepresented in higher education. http://www.ilga.gov/legislation/publicacts/97/PDF/097-0320.pdf Title: H.B. 1503 Source: www.ilga.gov SC Signed into law 08/2011 Postsec. Transparency and Efficiency Requires each public institution of higher learning to maintain a transaction register that includes a complete record of all funds expended, from whatever source for whatever purpose. Provides that the register must be prominently posted on the institution's Internet website and made available for public viewing and downloading. Grants the State Board for Technical and Comprehensive Education the authority to employ and administer certain administrative efficiency provisions. Comprehensive Human Resources System Directs the State Budget and Control Board's State Office of Human Resources to participate with five representatives selected by the respective presidents of the public institutions of higher learning and technical colleges to represent all of the public institutions of higher learning and technical colleges to study, develop, and recommend a separate, comprehensive human resources system for the public institutions of higher learning and technical colleges. Provides that the recommendation must include, but not be limited to, prescription of a methodology to establish a uniform compensation and classification plan among the public institutions of higher learning and technical colleges. Facility and Procurement Defines "permanent improvement project" for institutions of higher learning and revises the procurement statutory provisions. Public Vote for Tuition Change When the governing board of a public institution of higher learning, excluding technical colleges, adopts a change to the tuition or fees imposed on students, the change may be implemented by the institution only after a public vote with the number of trustees voting for and against the change being counted. http://www.scstatehouse.gov/sess119_2011-2012/bills/172.htm Title: S.B. 172 Source: http://www.scstatehouse.gov CT Signed into law 07/2011 Postsec. Existing law creates the Blue Ribbon Commission to develop and implement a strategic master plan for higher education in the state. Renames the commission the Planning Commission for Higher Education. Repeals the existing parameters for the master plan to be developed by the commission, and instead calls for the master plan to (1) establish numerical goals for 2015 and 2020 to increase the number of people earning a bachelor degree, associate degree or certificate, (2) increase the number of people successfully completing coursework at the community college level and the number of people entering the state's workforce and (3) eliminate the postsecondary completion gap. Requires that the master plan identify specific strategies to achieve such goals. Also requires that the master plan recommend changes to funding policies, practices and accountability to (1) align policies and practices with specified goals for the state's higher education system, including an evaluation of the use of performance-based funding and (2) consider how institutions might publicly report on expenditures, staffing and state support in a transparent and thorough manner. Repeals the requirement that the commission report biennially to the governor and general assembly on progress toward benchmarks identified in the strategic plan. Instead requires that the commission submit a preliminary report by January 2012 on the development of the strategic master plan, and submit a master plan by October 2012. Replaces biennial reporting requirements to governor and relevant legislative committees with annual reporting requirements. Specifies that the commission may periodically suggest changes to the goals as necessary. Rescinds language terminating the commission in January 2021. http://www.cga.ct.gov/2011/ACT/Pa/pdf/2011PA-00070-R00SB-00858-PA.pdf Title: S.B. 858 - Postsecondary Provisions Source: http://www.cga.ct.gov TX Signed into law 06/2011 Postsec. Requires that the higher education coordinating board's funding policies emphasize an alignment with education goals established by the board. Establishes requirements regarding the composition of committees employed by the board in establishing and reviewing the postsecondary funding process. Requires formulas for basic funding to incorporate, as the board considers appropriate, goals identified in the board's long-range statewide plan. Adds new Sec. 61.0593, "Student Success-Based Funding Recommendations". Identifies "at-risk student" and "critical field" for purposes of this section. Directs the board, in devising its funding formulas and making recommendations on appropriations to general academic teaching institutions, to consider undergraduate student success measures achieved by each of the institutions during the preceding state fiscal biennium. Also directs the board, at the same time it is making those recommendations, to make recommendations for incorporating the success measures into the distribution of any incentive funds. Specifies that success measures may include the total number of bachelor's degrees awarded, the total number of bachelor's degrees awarded in critical fields, the total number of bachelor's degrees awarded to at-risk students, and the institution's six-year graduation rate as compared against the six-year graduation rate predicted based on the composition of the institution's student body. Provides that not more than 10% of an institution's general revenue appropriations of base funds for undergraduate education recommended by the board may be based on student success measures, and that board recommendations based on student success measures do not affect funding for graduate education. Directs the board, in devising its funding formulas and making its recommendations to the legislature relating to appropriations of incentive funds for two-year public institutions, to consider the undergraduate student success measures achieved by the institution during the preceding state fiscal biennium. Specifies indicators that these success measures may include. Directs the board to review success measures for two- and four-year institutions biennially. Directs the board to include in its findings to the legislature an evaluation of the effectiveness of the student success measures in achieving the purpose of this section during the preceding state fiscal biennium. Directs the board, by September 30, 2011 and subsequently by July 2012, to submit to the Joint Oversight Committee on Higher Education Governance, Excellence, and Transparency a written report reviewing, comparing and highlighting national and global best practices on: (1) improving student outcomes, including student retention, graduations, and graduation rates; and (2) higher education governance, administration and transparency (this provision expires August 31, 2013). http://www.capitol.state.tx.us/tlodocs/82R/billtext/pdf/HB00009F.pdf#navpanes=0 Title: H.B. 9 Source: www.capitol.state.tx.us TX Signed into law 06/2011 Postsec. Directs the offices of the governor and the legislative budget board, in consultation with public institutions of higher education, to review the forms for higher education legislative appropriations requests to identify opportunities to improve efficiency, provide better transparency of funding sources, eliminate unnecessary or duplicative requirements, and otherwise reduce the cost or difficulty of providing information related to appropriations requests. Page 28 of 38: http://www.legis.state.tx.us/tlodocs/82R/billtext/pdf/SB00005F.pdf#navpanes=0 Title: S.B. 5 - Higher Education Legislative Appropriations Requests Process Source: www.legis.state.tx.us NV Signed into law 06/2011 Postsec. This bill creates the Committee to Study the Funding of Higher Education. Establishes the composition of the committee. Directs the committee to study specified issues, including: (1) Compare the method of funding higher education in Nevada with the methods used in other states, and determine whether other states' funding systems would be appropriate in Nevada; (2) Review the funding of remediation in the context of instructional delivery methods; (3) Consider funding institutions based on course completion rather than enrollment; and (4) Consider rewarding institutions for achieving defined graduation goals. http://www.leg.state.nv.us/Session/76th2011/Bills/SB/SB374_EN.pdf Title: S.B. 374 Source: http://www.leg.state.nv.us IL Adopted 05/2011 Postsec. Resolves that each public university report to the general assembly by January 2012 on its efforts regarding use of energy and water at its facilities, and have a target goal of reducing its expense footprint for power, gas and water consumption by at least 15% within 2 years or show how it has previously met this goal. Also resolves that this report include how much each university's total power, gas and water bills are and how much savings would be generated by its ongoing efforts to achieve the 15% target goal if that is more than its current efforts. http://www.ilga.gov/legislation/97/HR/PDF/09700HR0120lv.pdf Title: H.R. 120 Source: www.ilga.gov FL Signed into law 05/2011 Postsec. From Legislative Budget Committee Summary: Coenrollment in Public Schools and Adult Education Programs Prohibits funding for coenrollment in public schools and adult general education programs, except that for the 2011-2012 fiscal year students may enroll in core courses for credit recovery or dropout prevention for up to two courses. Provides that high school students are exempt from the payment of block tuition for general adult education programs. Facilities Expands the class size reduction lottery bond program to include other educational facilities. Suspends temporarily the state match for facilities and operating challenge grant programs for colleges and universities, effective July 1, 2011. Provides that existing eligible donations will remain eligible for future match and that the suspension may be removed once $200 million of the grant backlog has been matched. Allows a university board of trustees to expend carry-forward balances from prior year operational appropriations on legislatively approved fixed capital outlay projects authorized for the establishment of a new campus. Finance Streamlines library operations through consolidation and joint purchasing. Requires creation of a union catalog for higher education. Requires the Florida College System Council of Presidents to develop and recommend an equitable funding formula for the distribution of certain state funds to the college system institutions. Provides for the use of a funding formula to ensure equitable distribution of district workforce funds. Provides a $200,000 limit on the amount of state funds that may be paid for salaries of college and university presidents and administrative employees. Terminates the University Concurrency Trust Fund. Finanical Aid/Scholarships Increases the Florida Medallion Scholarship test scores in 2013-2014, from 1050 to 1170 for SAT, including the applicable home school test scores. Increases or establishes required community service hours for Bright Futures applicants. Requires applicants for Bright Futures, and certain other programs to submit the Free Application for Federal Student Aid prior to disbursement of funds. Prioritizes state student financial aid to the neediest (Pell eligible) students for the Florida Work Experience Program and the First Generation in College Program. Northwest Regional Data Center Designates the Northwest Regional Data Center as a primary data center. Student Enrollment Pilot Program Authorizes a spring and summer term student enrollment pilot program at the University of Florida for the purpose of aligning student enrollment and the availability of instructional facilities. Authorizes Bright Futures scholarships in the summer for these students. Transient Student Admission Authorizes the implementation of a transient student admission application process through the Florida Academic Counseling Tracking for Students system to include admissions, readmissions, financial aid, and transfer of credit functions. Authorizes a fee of $5 to support the system. Tuition Provides an exemption from the 30 percent need-based expenditure requirement from the tuition differential fee if the university has covered the entire tuition and fee costs of all resident students who are eligible for need-based aid. Authorizes alternative documentation for tuition fee waivers for Purple Heart veterans. Increases the tuition surcharge for excess hours to 100 percent in excess of 115 percent of the credit hours required for a degree. Requires a block tuition and corresponding out-of-state fee for students enrolled in adult general education courses. Removes fee exemptions for certain students and requires residency of students to be documented. http://laws.flrules.org/files/Ch_2011-063.pdf Title: S.B. 2150 Source: http://laws.flrules.org CO Signed into law 05/2011 Postsec. Directs the commission on higher education to design a master plan that achieves the following goals: increasing the overall number of degrees and certificates awarded in a year by 30% in a decade to provide support for economic development; renegotiating performance contracts with individual postsecondary institutions; and creating a performance-based funding plan that will make 25% of institutional funding based on student success metrics. http://www.leg.state.co.us/clics/clics2011a/csl.nsf/fsbillcont3/63B087D7A1DC83D687257801006051AC?Open&file=052_enr.pdf Title: S.B. 52 Source: http://www.leg.state.co.us AR Signed into law 03/2011 Postsec. Community College Revises funding formula for postsecondary institutions to include a needs-based component and an outcome-centered component. Directs the Arkansas Higher Education Coordinating Board to develop an outcome-centered funding formula by December 31, 2011. The outcome-centered component will constitute 25% of funding for two-year colleges and universities by the 2017-18 school year and shall be phased in at a rate 5% per year beginning in the 2013-14 school year. http://www.arkleg.state.ar.us/assembly/2011/2011R/Bills/SB766.pdf Title: S.B. 766 Source: http://www.arkleg.state.ar.us/ CA Signed into law 03/2011 Postsec. From bill summary: Requires the Regents of the University of California and the Trustees of the California State University, in implementing reductions contained in the Budget Act of 2011, to minimize fee and enrollment impacts on students by targeting actions that lower the costs of instruction and administration. Requires the regents and the trustees to submit recommended budget options, with savings estimates for each identified solution, to the legislature, the governor, and stakeholders for review and comment by June 1, 2011, prior to adoption of a final plan. States enrollment goals for the 2011–12 academic year, and requires the regents and the trustees to report to the legislature by May 1, 2012, on whether the University of California and the California State University met their respective 2011–12 enrollment goals. Provides that if the goals are not met, the director of finance will be directed to revert the total amount of enrollment funding associated with the total share of the enrollment goal that was not met to the general fund by May 15, 2012. Requires the regents and the trustees to submit a final detailed report to the governor, the department of finance, and the legislature by September 1, 2012. Pages 79-80 of 81: http://www.leginfo.ca.gov/pub/11-12/bill/sen/sb_0051-0100/sb_70_bill_20110324_chaptered.pdf Title: S.B. 70 - Sec. 59 and 60 Source: www.leginfo.ca.gov UT Signed into law 03/2011 Postsec. Requires the board of regents to include the mission of each institution in the master plan for higher education. Requires the board of regents' combined budget recommendation to include (i) employee compensation; (ii) mandatory costs, including building operations and maintenance, fuel and power; (iii) mission based funding; (iv) statewide and institutional priorities, including scholarships, financial aid and technology infrastructure; and (v) unfunded historic growth. Directs the board of regents to establish mission based funding, which must include enrollment growth and up to three strategic priorities approved by the board and designed to improve the availability, effectiveness or quality of higher education in the state. While permitting the board of regents to allocate funding for modest growth to doctorate-granting institutions, the bill directs the board of regents to place greater emphasis on a university's fulfillment of strategic priorities when recommending an allocation of mission based funding to a doctorate-granting university. Directs the president of each institution of higher education to annually establish institutional initiatives aligned with the strategic priorities and consistent with the institution's mission and role, and to allocate mission based funding to each initiative. Directs the board to recommend to the legislature ways to address funding inequities for institutions with similar missions.Requires the board of regents and institutions to report to the higher education appropriations subcommittee on the use of the previous year's mission based funding, including performance outcomes relating to the strategic initiatives approved by the board. http://le.utah.gov/~2011/bills/sbillenr/sb0097.pdf Title: S.B. 97 Source: le.utah.gov MN Signed into law 05/2010 Postsec. Community College Requires the MnSCU board to reduce expenditures by streamlining centrally delivered services. https://www.revisor.mn.gov/bin/bldbill.php?bill=S0184.3.html&session=ls86 Title: S.F. 184 Source: https://www.revisor.mn.gov/ TX Issued 09/2009 Postsec. Directs the Texas Higher Education Coordinating Board, in cooperation with Texas public institutions of higher education, to undertake a comprehensive review of opportunities for achieving cost efficiencies, including: --State funding based on student course completion --Restructuring the state's financial aid programs to improve administrative efficiencies and to provide financial aid to students who work hard to academically prepare for college --Academic program consolidation and elimination of programs that produce relatively few graduates --Faculty workload --Articulation agreements between two-year and four-year institutions --Distance learning --Alternatives to creating new campuses --Course redesign to improve quality and reduce instructional costs for more courses --Cooperative, cross-system contracting and purchasing --Space utilization --Energy use --Cost of instructional materials. Also directs the higher education coordinating board to conduct a review of higher education cost efficiencies implemented in other states and other countries. Directs the higher Education Coordinating Board, Based on the findings of this review, to develop practices, policies and recommendations for cost-containment among public institutions of higher education and submit these to the governor, legislature and public institutions of higher education by November 1, 2010. Executive order: http://www.thecb.state.tx.us/index.cfm?ObjectID=A3C6E9A3-CE4A-E4DE-C6D8183684DC9CD6 Final report (November 2010): http://www.thecb.state.tx.us/files//dmfile/CostEfficiencies11.19.2010.pdf Draft report (July 21, 2010): http://www.thecb.state.tx.us/index.cfm?objectid=23A87B1E-DFF7-820A-C807155DB1EB855B THECB Web page about the advisory committee on higher education cost efficiencies: http://www.thecb.state.tx.us/index.cfm?ObjectID=9D89F7D3-F892-EEA0-D923B6D6D465D781 Title: E.O. RP73 Source: www.thecb.state.tx.us TX Signed into law 06/2009 Postsec. Directs the Texas Higher Education Coordinating Board to identify achievable cost-saving measures at public institutions of higher education. Directs the board to report the results of the study by January 31, 2011 to the governor and lieutenant governor, and specified legislative leaders. Requires that the report include an estimate of the amount of money that would be saved in a five-year period through the implementation of each recommendation. Directs the board to conduct a study and recommend policies on the use and availability of electronic textbooks in higher education in this state and in other states. Provides the study and policy recommendations must focus on the results of the University of Texas - Austin pilot and must address methods for encouraging the use of electronic textbooks at public or private institutions of higher education in the state. Directs the board to make an initial report and recommendations by December 1, 2010. http://www.legis.state.tx.us/tlodocs/81R/billtext/pdf/HB04149F.pdf Title: H.B. 4149 Source: www.legis.state.tx.us