Work continuing on performance-based funding model for universities

Stack of US twenty dollar bills sitting on top of scattered twenty dollar bills.

A group of key education and government representatives tasked with coming up with a formula for how state universities will receive part of their state funding based on their performance continued its work Wednesday at the Kentucky Chamber of Commerce office in Frankfort.

After the governor and legislature approved language to begin using a performance-based funding model for the state’s colleges and universities, an idea the Kentucky Chamber has vocally supported for many years, a group was set up to decide how to allocate that funding.

The group, which includes university presidents, members of the governor’s staff and legislative leaders, discussed the funding criteria and possible models.  They have until December 1, 2016, to prepare a formula and issue a report to the governor and the General Assembly. After the model is proposed by the group, the legislature is expected to consider legislation in the 2017 session to implement the funding approach.

Performance-based funding has been a topic of conversation in Kentucky for many years as the Kentucky Chamber has advocated for a reasonable model and the Council on Postsecondary Education (CPE) has worked with university presidents to try and find compromise on the issue.

In the language passed by the legislature and approved by the governor in the 2016 session, 5 percent of the allocated funding for each institution will be set aside in the second year of the biennium—the 2017-2018 school year—for performance-based funding.

The work group will determine targets for each university to meet in order to receive the funding.

Read more about performance-based funding in the Performance & Outcomes-Based Funding: Lessons for Accountable Investment for Postsecondary Progress in Kentucky, a document from the Kentucky Chamber of Commerce and the Prichard Committee for Academic Excellence, here.


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