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90-Day Goal Performance Funding Presented to the Illinois Board of Higher Education April 12, 2011

90-Day Goal Performance Funding

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90-Day Goal Performance Funding. Presented to the Illinois Board of Higher Education April 12, 2011. Performance Funding. Background and Review IBHE Efforts and Activities Progress and Outcomes Next Steps. Performance Funding I. Background and Review. Other States - PowerPoint PPT Presentation

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Page 1: 90-Day Goal Performance Funding

90-Day GoalPerformance Funding

Presented to the Illinois Board of Higher Education

April 12, 2011

Page 2: 90-Day Goal Performance Funding

Performance Funding

I. Background and Review

II. IBHE Efforts and Activities

III. Progress and Outcomes

IV. Next Steps

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Page 3: 90-Day Goal Performance Funding

Performance Funding I. Background and Review

A. Other States Various states across the country are implementing

performance-based funding to incentivize higher education efficiencies and improve performance.

B. Higher Education Finance Commission In Illinois, the Higher Education Finance Commission

concluded that performance funding is a viable policy tool for achieving statewide goals.

C. 90-Day Goal: Performance Funding Performance funding is an important component of the 90-

day strategic plan and Illinois Public Agenda.

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Page 4: 90-Day Goal Performance Funding

Performance Funding I. Background and Review

A. Other States – performance funding is not a one-size fits all methodology; each state that utilizes PF offers unique characteristics; they all do share a common goal of increasing the number of graduates.

Ohio: The Ohio model includes a stop-loss provision/99% previous years funding. Each year the stop-loss figure is reduced.

Indiana: One of few states to use performance funding to reward institutions for performance and prioritize budget cuts.

Tennessee: Has utilized performance funding since 1979 that allows institutions to earn additional funding based on performance.

Texas: In 2007, the legislature created a performance incentive fund to provide a pool of funding to institutions based on degrees awarded. The Board is proposing a 4-Year phase-in to encourage completion.

Arkansas: In March 2011, the State Senate approved legislation that would phase in a new funding formula over a 5-year period starting in 2013. When fully implemented would base 25% on graduation rates.

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Page 5: 90-Day Goal Performance Funding

Performance Funding I. Background and Review

B. In Illinois, the Higher Education Finance Study Commission concluded that:

Performance funding models must:

Developed through a consultative process & broad participation

Tailored to each sector of higher education & recognize unique missions

Encourage at-risk students to complete Tie funds to completion and degree production Designed to Maintain quality

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Page 6: 90-Day Goal Performance Funding

Performance Funding I. Background and Review

C. At the February 15th Board Meeting I presented the Board with the 90 –day goal that I would be concentrating on: To support the drafting, revising, and passage of

legislation that provides a broad framework for integrating performance funding into the higher education budget development process.

To move the goal forward I planned to work with BHE staff, legislative staff, and higher education partners to develop a draft proposal and build advocacy for performance funding.

Today, I will share with you the agency’s efforts and the activities I have conducted since February aimed at meeting this goal, the progress and outcomes of those activities, and the next steps in the process.

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Page 7: 90-Day Goal Performance Funding

Performance Funding II. IBHE Efforts & Activities

A. Meetings with Legislators & Staff

B. Committee Hearings

C. Meetings with Higher Education Partners

D. Other Efforts & Activities

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Page 8: 90-Day Goal Performance Funding

Performance Funding II. IBHE Efforts & Activities

A. Meetings with Legislators & Legislative Staff

Senator Ed Maloney Senate Democratic Staff Senate Republican Staff Representative Chapin Rose House Democratic Staff Senator Dan Kotowski House Republican Staff

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Page 9: 90-Day Goal Performance Funding

Performance Funding II. IBHE Efforts & Activities

B. Committee Hearings

House Committee Hearing (HB 1503) 2/24/11

Senate Committee Hearing (SB 1773) 3/15/11

House Higher Education Appropriation Hearing 3/17/11

Senate Higher Education Appropriation Hearing 5/4/11

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Page 10: 90-Day Goal Performance Funding

Performance Funding II. IBHE Efforts & Activities

C. Meetings with Higher Education Partners

Staff attended the Complete College America academy to discuss performance funding and other goals

Public Universities Community College President’s Council Meeting Federation of Independent Illinois Colleges and

Universities

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Page 11: 90-Day Goal Performance Funding

Performance Funding II. IBHE Efforts & Activities

D. Other Efforts & Activities

Fiscal Note for HB 1503 Developed draft testimony on SB 1773 Developed 1-Page Briefing Document Met with Senate Republican Staff Briefed Chief Academic Officers Met with House Democratic Staff Met with House Republican Staff Met with Senate Democratic Staff

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Page 12: 90-Day Goal Performance Funding

Performance FundingIII. Progress

A. Endorsements/Support

In Committee, performance funding has been supported by ISAC, FIICU, and various institutions.

Unanimously supported by the Community College Presidents Council

Senate President has voiced strong support for performance funding

House Higher Education Appropriations Committee Chairman supports performance funding

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Page 13: 90-Day Goal Performance Funding

Performance FundingIII. Progress

B. Outcomes

House Bill 1503 Representative Chapin Rose Amended to match SB 1773 Passed the House 102-0. 4/5/11

Senate Bill 1773 Senator Ed Maloney Directs IBHE to integrate PF into the FY13

budget process Passed out of Committee 3/15/11

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Page 14: 90-Day Goal Performance Funding

Performance FundingIII. Progress

B. Outcomes HB 1503 & SB 1773:

The IBHE is directed to form a broad-based working group to devise a system for allocating resources to achieve state goals

Beginning in FY2013, performance funding must be incorporated into the IBHE Budget Recommendations

Consult with higher education stakeholders Formula should recognize the needs of students who are

academically or financially at-risk Unique Institutional missions shall be considered Metrics must be designed to Maintain Quality

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Page 15: 90-Day Goal Performance Funding

Performance FundingIV. Next Steps

A. Continue to Advocate and Support Performance Funding Legislation

B. Implement the Legislation

C. Establish Broad-based working groups, develop criteria, create models, etc.

D. Incorporate Performance Funding in the FY 2013 Budget Development Process

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