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Regular Session, 2013
SENATE BILL NO. 117
BY SENATORS APPEL AND GUI LLORY AND REPRESENTATI VE CARTER
Prefiled pursuant to Article III, Section 2(A)(4)(b)(i) of the Constitution of Louisiana.
POSTSECONDARY ED. Provides for the creation of the Outcomes-Based Funding Task
Force. (gov sig)
AN ACT1
To enact R.S. 17:3129.2 and R.S. 36:651(N), relative to public postsecondary education2
funding; to provide for the creation of the Outcomes-Based Funding Task Force and3
to provide for its composition, powers, duties, compensation, staffing, and support;4
to require the task force to develop an outcomes-based funding formula for public5
postsecondary education; to provide relative to formula components and a time line6
for implementation of the formula; to provide for reporting requirements; to provide7
for a termination date for the task force; and to provide for related matters.8
Be it enacted by the Legislature of Louisiana:9
Section 1. R.S. 17:3129.2 is hereby enacted to read as follows:10
§3129.2. Outcomes-Based Funding Task Force; creation; powers and duties;11
report12
A. The legislature finds that:13
(1) The linkage between postsecondary educational attainment,14
individual earning power, and overall economic health and prosperity is15
documented and undeniable.16
(2) Alignment of postsecondary program offerings with the state's17 SB NO. 117
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economic and workforce needs and increased emphasis on the production of1
postsecondary degrees and certifications that provide the holder with greater2
earning potential are necessary and essential to the state's economic well being.3
(3) The number of Louisiana residents with postsecondary degrees and4
certificates must significantly increase to meet the state's current and projected5
workforce and economic development needs.6
(4) The current retention, completion, and graduation rates of most of7
Louisiana's public colleges and universities are below the regional and national8
average, and it is both responsible and in the best interest of the state to allocate9
educational resources in a manner that effectively supports our public10
postsecondary institutions and promotes and improves prioritized outcomes at11
the campus level.12
(5) The state's Master Plan for Postsecondary Education and the13
postsecondary education funding formula contained therein must reflect14
student and state priorities and promote and drive the changes needed to make15
Louisiana's public postsecondary educational system more productive, more16
efficient, more accountable, and better aligned with the state's workforce and17
economic development needs.18
B. The Board of Regents shall create and establish a task force, to be19
designated as the Outcomes-Based Funding Task Force, for the purpose of20
developing a funding formula for the equitable allocation of state funds to21
Louisiana's public postsecondary educational institutions that appropriately22
considers cost, but places significant emphasis on student and institutional23
outcomes and is aligned with state economic development and workforce needs24
and strategies.25
C. The task force shall be composed of twenty-one members as follows:26
(1) The chairman of the Board of Regents, who shall serve as chairman27
of the task force.28
(2) One member of the Board of Regents, appointed by the chairman29 SB NO. 117
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thereof.1
(3) The chairman of the Board of Supervisors of Louisiana State2
University and Agricultural and Mechanical College, or his designee.3
(4) The chairman of the Board of Supervisors of Southern University4
and Agricultural and Mechanical College, or his designee.5
(5) The chairman of the Board of Supervisors for the University of6
Louisiana System, or his designee.7
(6) The chairman of the Board of Supervisors of Community and8
Technical Colleges, or his designee.9
(7) The commissioner of higher education.10
(8) The president of the Louisiana State University System.11
(9) The president of the Southern University System.12
(10) The president of the University of Louisiana System.13
(11) The president of the Louisiana Community and Technical College14
System.15
(12) The secretary of the Louisiana Department of Economic16
Development, or his designee.17
(13) The chairman of the Louisiana Workforce Commission, or his18
designee.19
(14) One member representing the business community, appointed by20
the governor.21
(15) One member appointed by the chairman of the Senate Committee22
on Education.23
(16) One member appointed by the chairman of the House Committee24
on Education.25
(17) The president of LSUnited.26
(18) The chairman of the Council of Faculty Advisors of the Louisiana27
State University System.28
(19) The president of the Faculty Senate of Southern University and29 SB NO. 117
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Agricultural and Mechanical College.1
(20) The chairman of the Faculty Advisory Council to the University of2
Louisiana System.3
(21) The chairman of the Faculty Advisory Council of the Louisiana4
Community and Technical College System.5
D.(1) In developing the outcomes-based funding formula, the task force6
shall focus upon course, certificate, and degree completion and consider a range7
of factors that shall be weighted in a manner that reinforces each institution's8
role, scope, and mission. These outcomes, at a minimum, shall include student9
retention, timely progression toward degree completion, certificate and degree10
production, alignment with current and projected workforce needs, and11
consideration of the potential earning power of graduates.12
(2) The task force may also consider the following, as appropriate for13
each individual postsecondary institution:14
(a) Graduation rates.15
(b) Research.16
(c) Transfer and articulation policies and student transfer activity.17
(d) Student enrollment characteristics, including at-risk, low-income,18
and first-generation students.19
(e) Graduates in high need, high demand, and high growth job areas.20
(f) Graduates in science, technology, engineering, and mathematics21
disciplines.22
(g) Any other factor or metric identified by the task force that will23
promote desired student and institutional outcomes.24
(3) The task force shall:25
(a) Ensure that the outcomes-based formula appropriately considers the26
role, scope, and mission of each institution and class of institution, and allocates27
funding to each postsecondary institution based upon performance in meeting28
the outcomes established in the formula for each postsecondary institution.29 SB NO. 117
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(b) Establish a concise set of outcomes to be measured for each1
postsecondary institution and define metrics for each outcome included in the2
formula that are reliable, accurate, nationally recognized, and easily3
understood.4
(c)(i) Determine the optimal percentage of state appropriated funds to5
be allocated to public postsecondary institutions based upon outcomes and the6
percentage to be allocated based upon costs. However, the percentage to be7
based upon outcomes must be sufficient to incentivize increased performance8
at the campus level.9
(ii) Nothing in this Section shall impose an obligation on the legislature10
to fund the outcomes-based formula developed by the task force.11
(d) Consider the characteristics unique to each individual postsecondary12
institution, including student enrollment characteristics and geographic location13
and delivery area.14
(e) Consider factors unique to community colleges.15
(f) Consider factors unique to professional schools.16
(g) Ensure that the outcomes-based funding formula includes provisions17
to prevent sudden, dramatic changes in the funding level of any postsecondary18
institution.19
(h) Consult with and solicit feedback from institutional presidents,20
chancellors, faculty, chief academic officers, chief financial officers, and21
business and civic leaders through the use of subcommittees, advisory22
committees, or work groups.23
(i) Determine a reasonable time line for full implementation of the new24
outcomes-based funding formula, beginning with the 2014-2015 fiscal year.25
(j) Make recommendations for any changes needed in the Master Plan26
for Postsecondary Education and the Granting Resources and Autonomies for27
Diplomas Act as provided in R.S. 17:3139, et seq., to support and facilitate28
implementation of the outcomes-based funding formula.29 SB NO. 117
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E.(1) The chairman of the Board of Regents shall call the first meeting1
of the task force as soon as practicable, but not later than September 1, 2013,2
at which time the task force shall select a vice chairman and such other officers3
as it deems necessary.4
(2) The task force shall meet upon the call of the chairman as often as5
deemed necessary to carry out its duties, but not less than once a month.6
(3) A majority of the task force shall constitute a quorum for the7
transaction of business.8
(4) Members shall serve without compensation, but may receive such9
per diem or reimbursement for travel and expenses as may be provided by their10
board, agency, or appointing authority.11
F.(1) The Board of Regents shall provide primary administrative and12
staff support to the task force and may solicit information and staff assistance13
from each represented board or agency and each postsecondary education14
system and institution as needed.15
(2) Each represented board and agency and each public postsecondary16
system and institution shall work collaboratively and cooperatively with the17
task force and the Board of Regents and shall provide such information and18
assistance as may be requested.19
G. The task force is authorized to accept grants, donations, gifts, monies,20
aid, and technical and research assistance and services from public or private21
sources for the purposes of completing its work, and the receipt thereof shall be22
a matter of public record.23
H. The task force shall complete its work and submit a written report24
containing the proposed outcomes-based funding formula and related25
recommendations for related policy and statutory changes to the Board of26
Regents not later than January 15, 2014. The Board of Regents shall review the27
report and submit the report and its comments to the Senate Committee on28
Education, the Senate Committee on Finance, the House Committee on29 SB NO. 117
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Education, and the House Committee on Appropriations, not later than1
January 31, 2014.2
I. The task force shall terminate and all authority for its existence shall3
end on June 30, 2014.4
J. After the outcomes-based funding formula is implemented, the Board5
of Regents shall evaluate the formula at least once every two years and submit6
a written report to the Senate Committee on Education, the Senate Committee7
on Finance, the House Committee on Education, and the House Committee on8
Appropriations, regarding the formula's effectiveness and the outcomes9
achieved by each postsecondary institution. Such report shall also include10
recommendations for any adjustments to the formula needed to recognize and11
increase student and institutional performance.12
Section 2. R.S. 36:651(N) is hereby enacted to read as follows:13
§651. Transfer of boards, commissions, departments, and agencies to Department of14
Education; boards, commissions, and agencies within Department of15
Education16
* * *17
N. The Outcomes-Based Funding Task Force (R.S. 17:3129.2) is placed18
within the Department of Education under the jurisdiction of the Board of19
Regents and shall exercise and perform its powers, duties, and functions20
independently of the department as provided in R.S. 17:3129.2.21
Section 3. This Act shall become effective upon signature by the governor or, if not22
signed by the governor, upon expiration of the time for bills to become law without signature23
by the governor, as provided by Article III, Section 18 of the Constitution of Louisiana. If24
vetoed by the governor and subsequently approved by the legislature, this Act shall become25
effective on the day following such approval.26 SB NO. 117
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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. SB NO. 117
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(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 SB NO. 117
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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. SB NO. 117
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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.