The original instrument was prepared by Jeanne Johnston. The following digest,
which does not constitute a part of the legislative instrument, was prepared by
Ashley Mitchell.
DIGEST
Appel (SB 117)
Proposed law provides for the creation of the Outcomes-Based Funding Task Force as follows:
(1)Requires the Bd. of Regents to establish such task force to develop a funding formula for
the equitable allocation of state funds to public postsecondary educational institutions that
appropriately consider cost, but places significant emphasis on student and institutional
outcomes and is aligned with state economic development and workforce needs and
strategies.
(2)Requires that the task force be composed of 21 members:
(a)The chairman of the Bd. of Regents, who shall serve as chairman.
(b)One member of the Bd. of Regents, appointed by the chairman.
(c)The chairman of the LSU Bd. of Supervisors, or his designee.
(d) The chairman of the Southern University Bd. of Supervisors, or his designee.
(e) The chairman of the Bd. of Supervisors for the University of Louisiana System, or
his designee.
(f) The chairman of the Bd. of Supervisors of Community and Technical Colleges, or
his designee.
(g)The commissioner of higher education.
(h) The president of the LSU System.
(i) The president of the Southern University System.
(j) The president of the University of Louisiana System.
(k) The president of the Louisiana Community and Technical College System.
(l) The secretary of the Louisiana Department of Economic Development, or his
designee. (m)The chairman of the Louisiana Workforce Commission, or his designee.
(n)One member representing business or community, appointed by the governor.
(o)One member appointed by the chairman of the Senate Committee on Education.
(p)One member appointed by the chairman of the House Committee on Education.
(q)The President of LSUnited.
(r)The chairman of the Council of Faculty Advisors of the Louisiana State
University System.
(s)The president of the Faculty Senate of Southern University and Agricultural
and Mechanical College.
(t)The chairman of the Faculty Advisory Council to the University of Louisiana
System.
(u)The chairman of the Faculty Advisory Council of the Louisiana Community and
Technical College System.
(3)Requires the task force to focus on course, certificate, and degree completion when
developing the outcomes-based formula and consider a range of factors to be weighted in
accordance with the role, scope, and mission of each postsecondary institution. Requires
that such factors include retention, timely progression toward degree completion,
certificate and degree production, alignment with current and projected workforce needs,
and consideration of the potential earning power of graduates.
(4)Provides that the task force may also consider factors such as graduation rates; research;
transfer and articulation policies and activity; student enrollment characteristics;
graduates in high need, demand, and growth areas; graduates in science, technology,
engineering, and mathematics disciplines; and any other factors deemed appropriate by
the task force.
(5)Requires the task force to:
(a)Ensure that the formula considers the role, scope, and mission of each institution
and class of institution, and allocates funding to each postsecondary institution
based upon performance in meeting the outcomes established in the formula.
(b)Establish a concise set of outcomes to be measured for each postsecondary
institution and define metrics for each outcome included in the formula that are
reliable, accurate, nationally recognized, and easily understood.
(c)Determine the optimal percentage of state appropriated funds to be allocated to public postsecondary institutions based upon outcomes and the percentage to be
based upon costs. Requires that the percentage based upon outcomes be sufficient
to incentivize increased performance at the campus level. Proposed law provides
that the legislature is not required by proposed law to fund the outcomes-based
formula developed by the task force.
(d)Consider the characteristics unique to each individual postsecondary institution,
including student enrollment characteristics and geographic location and delivery
area.
(e)Consider factors unique to community colleges and professional schools.
(f)Ensure that the formula includes provisions to prevent sudden, dramatic changes
in funding for any postsecondary institution.
(g)Consult with and solicit feedback from institutional presidents, chancellors,
faculty, chief academic officers, chief financial officers, and business and civic
leaders through subcommittees, advisory committees, or work groups.
(h)Determine a reasonable time line for full implementation of the new outcomes-
based funding formula, beginning with the 2014-2015 fiscal year.
(i)Make recommendations for any changes needed in the Master Plan for
Postsecondary Education and the Granting Resources and Autonomies for
Diplomas Act (GRAD Act) to support and facilitate implementation of the
outcomes-based funding formula.
(6)Requires that the task force's first meeting be held not later than Sept. 1, 2013, on the call
of the chairman and that the task force meet at least once a month. Requires the task force
to elect a vice chairman and such other officers as it deems necessary.
(7)Provides that a majority of the task force constitutes a quorum for the transaction of
business.
(8)Provides that members will serve without compensation but may receive per diem or
reimbursement for travel and expenses as may be provided by their board, agency, or
appointing authority.
(9)Provides that the Bd. of Regents shall provide primary administrative and staff support to
the task force but may solicit information and staff assistance from each represented
board or agency and each postsecondary education system and institution as needed.
Requires represented boards and agencies and each public postsecondary system and
institution to cooperate with the task force and the Bd. of Regents and provide
information and assistance as requested. (10)Authorizes the task force to accept grants, donations, gifts, monies, aid, and technical and
research assistance and services from public or private sources for the purposes of
completing its work and specifies that receipt of such is a public record.
(11)Requires the task force to complete its work and submit a written report containing the
proposed outcomes-based funding formula and related recommendations for related
policy and statutory changes to the Bd. of Regents not later than January 15, 2014.
Requires the board to review the report and submit the report and its comments to the
Senate and House Committees on Education, the Senate Committee on Finance, and the
House Committee on Appropriations, not later than January 31, 2014.
(12)Requires the Bd. of Regents, after the outcomes-based funding formula is implemented,
to evaluate the formula at least once every two years and submit a written report to the
Senate and House Committees on Education, the Senate Committee on Finance, and the
House Committee on Appropriations, regarding the formula's effectiveness and the
outcomes achieved by each postsecondary institution. Further requires that such report
include recommendations for any adjustments to the formula needed to recognize and
increase student and institutional performance.
Proposed law provides that the task force shall terminate on June 30, 2014.
Effective upon signature of the governor or lapse of time for gubernatorial action.
(Adds R.S. 17:3129.2 and R.S. 36:651(N))
Summary of Amendments Adopted by Senate
Senate Floor Amendments to engrossed bill
1. Changes the number of members that will compose the task force from fifteen to
twenty-one.
2. Changes the number of members that will represent the business community on
the task force, and removes civic organization representatives.
3. Adds additional members to the task force.
4. Provides that there is no obligation on the legislature to fund the outcomes-based
formula.