Page 1 of 5
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
Regular Session, 2014 ENROLLED
SENATE BILL NO. 337
BY SENATORS APPEL AND THOMPSON
AN ACT1
To enact R.S. 17:3129.2, relative to public postsecondary education; to provide for the2
development of an outcomes-based funding formula for postsecondary education;3
to provide relative to formula components and a timeline for implementation of the4
formula; to provide for submission to the Board of Regents; to provide for reporting5
requirements; and to provide for related matters.6
Be it enacted by the Legislature of Louisiana:7
Section 1. R.S. 17:3129.2 is hereby enacted to read as follows:8
ยง3129.2. Postsecondary education; outcomes-based funding formula; creation;9
components; approval; implementation; reports10
A. The legislature finds that:11
(1) There is a direct correlation between postsecondary educational12
attainment, individual earning power and quality of life, and the overall13
economic health and prosperity of the state.14
(2) Alignment of postsecondary program offerings with economic15
development and workforce needs and increased emphasis on the production16
of postsecondary degrees and certifications that provide the holder with greater17
earning potential are necessary and essential to the state's economic well-being18
and the welfare of the people of Louisiana.19
(3) The number of Louisiana residents with postsecondary degrees and20
certificates must significantly increase in order to meet the state's current and21
projected workforce demands.22
(4) Any measurement of the success of Louisiana's postsecondary23
educational system must necessarily include indicators that compare the24
ACT No. 462 SB NO. 337 ENROLLED
Page 2 of 5
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
performance of individual institutions to that demonstrated by statistically peer1
institutions across the country.2
(5) The current retention, completion, and graduation rates of most of3
Louisiana's public colleges and universities are below regional and national4
averages, and it is both responsible and in the best interest of the state to5
allocate educational resources in a manner that effectively supports our public6
postsecondary institutions and promotes and prioritizes outcomes at the campus7
level.8
(6) The state's Master Plan for Postsecondary Education and9
postsecondary education funding formula must reflect student and state10
priorities and promote and drive the changes needed to make Louisiana's public11
postsecondary educational system more productive, more efficient, more12
affordable, more accountable, and better aligned with the state's economic13
development and workforce needs.14
B. The commissioner of higher education and the president of each15
public postsecondary education system shall jointly and collaboratively:16
(1) Review the postsecondary education funding formula and develop17
a comprehensive outcomes-based funding formula that ensures the equitable18
allocation of state funds to public postsecondary educational institutions,19
appropriately considers costs, places significant emphasis on student and20
institutional outcomes, and aligns with the state's economic development and21
workforce needs.22
(2) Consult with and solicit meaningful feedback and guidance from23
institutional presidents, chancellors, faculty, chief academic officers, chief24
financial officers, students, and business and civic leaders.25
(3) Make recommendations for any changes needed in the Master Plan26
for Postsecondary Education and the Louisiana Granting Resources and27
Autonomy for Diplomas Act as provided in R.S. 17:3139, et seq., to support and28
facilitate implementation of the outcomes-based funding formula.29
C. In creating the outcomes-based funding formula, the commissioner30 SB NO. 337 ENROLLED
Page 3 of 5
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
of higher education and the postsecondary system presidents shall focus upon1
developing the optimal methodology by which to allocate postsecondary funding2
in a manner that provides incentives for institutions to achieve desired3
outcomes. The following factors shall be considered and included in the formula4
as deemed appropriate:5
(1) Student success factors, including retention, timely progression6
toward degree completion, cost of completion, certificate and degree7
production, and successful transfer of students from community and technical8
colleges to four-year degree-granting institutions.9
(2) Alignment with economic development and workforce needs,10
including certificate and degree production in science, technology, engineering,11
mathematics, and other high-demand fields and the potential earning power of12
graduates.13
(3) Research and innovation, including research expenditures,14
technology transfer, and commercialization.15
(4) Funding, including credit hour costs and cost of certificate and16
degree completion.17
(5) Any other factor or metric that would promote desired student and18
institutional outcomes.19
D. The outcomes-based funding formula shall:20
(1) Appropriately consider the role, scope, and mission of each21
postsecondary institution.22
(2) Establish a concise set of outcomes to be measured for each23
postsecondary institution and define metrics for each outcome that are reliable,24
accurate, nationally recognized, and benchmark the performance of each25
institution compared to its statistical peers in other states, wherever valid26
comparable data is available.27
(3) Determine the optimal allocation of state appropriated funds to each28
postsecondary institution based upon operational costs, performance outcomes,29
and performance-based, targeted incentives. However, the amount to be30 SB NO. 337 ENROLLED
Page 4 of 5
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
allocated based upon performance outcomes must be sufficient to incentivize1
increased performance at the campus level.2
(4) Consider the characteristics unique to each individual postsecondary3
institution, including community and technical colleges and professional4
schools, such as student enrollment characteristics and geographic location and5
delivery area.6
(5) Include safeguards to prevent sudden, dramatic changes in the7
funding level of any postsecondary institution.8
(6) Contain a timeline for full formula implementation.9
E. Implementation of the outcomes-based funding formula shall begin10
as soon as practicable, but not later than the beginning of the 2016-2017 fiscal11
year.12
F.(1) Not later than December 31, 2015, the commissioner of higher13
education shall submit a written report containing the proposed outcomes-based14
funding formula and related recommendations for related policy and statutory15
changes to the Board of Regents for its consideration and approval.16
(2) The Board of Regents shall review the report and subsequently17
submit the report, the proposed outcomes-based funding formula, and the18
board's comments and recommendations to the Senate Committee on19
Education, the Senate Committee on Finance, the House Committee on20
Education, and the House Committee on Appropriations, not later than21
January 31, 2016.22
G. The commissioner of higher education and the postsecondary system23
presidents shall collectively re-evaluate the postsecondary education funding24
formula at least once every two years and submit a written report regarding the25
formula's effectiveness and the performance of each postsecondary institution26
to the Senate Committee on Education, the Senate Committee on Finance, the27
House Committee on Education, and the House Committee on Appropriations.28
Section 2. This Act shall become effective upon signature by the governor or, if not29
signed by the governor, upon expiration of the time for bills to become law without signature30 SB NO. 337 ENROLLED
Page 5 of 5
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
by the governor, as provided by Article III, Section 18 of the Constitution of Louisiana. If1
vetoed by the governor and subsequently approved by the legislature, this Act shall become2
effective on the day following such approval.3
PRESIDENT OF THE SENATE
SPEAKER OF THE HOUSE OF REPRESENTATIVES
GOVERNOR OF THE STATE OF LOUISIANA
APPROVED: