The original instrument and the following digest, which constitutes no part of the
legislative instrument, were prepared by Jeanne C. Johnston.
DIGEST
Appel (SB 337)
Proposed law provides for the creation and implementation of an outcomes-based funding
formula for postsecondary education as follows:
(1)Requires the commissioner of higher education and the presidents of each postsecondary
education system to:
(a)Review the postsecondary education funding formula and develop a
comprehensive outcomes-based funding formula that ensures the equitable
allocation of state funds to public postsecondary educational institutions,
appropriately considers costs, places significant emphasis on student and
institutional outcomes, and aligns with the state's economic development and
workforce needs.
(b)Consult with and solicit meaningful feedback and guidance from institutional
presidents, chancellors, faculty, chief academic officers, chief financial officers,
students, and business and civic leaders.
(c)Make recommendations for any changes needed in the Master Plan for
Postsecondary Education and the Granting Resources and Autonomies for
Diplomas Act as provided in R.S. 17:3139, et seq., to support and facilitate
implementation of the outcomes-based funding formula.
(d)Focus upon developing the optimal methodology by which to allocate
postsecondary funding in a manner that provides incentives for institutions to
achieve desired outcomes.
(2)Requires that the following factors be considered and included in the formula as deemed
appropriate.
(a)Student success factors, including retention, timely progression toward degree
completion, cost of completion, certificate and degree production, and successful
transfer of students from community and technical colleges to four-year degree
granting institutions.
(b)Alignment with economic development and workforce needs, including certificate
and degree production in science, technology, engineering, mathematics, and other
high demand fields and the potential earning power of graduates. (c)Research and innovation, including research expenditures, technology transfer,
and commercialization.
(d)Funding, including credit hour costs and cost of certificate and degree completion.
(e)Any other factor or metric that would promote desired student and institutional
outcomes.
(3)Requires the outcomes-based formula to:
(a) Appropriately consider the role, scope, and mission of each postsecondary
institution.
(b)Establish a concise set of outcomes to be measured for each postsecondary
institution and define metrics for each outcome that are reliable, accurate,
nationally recognized, and benchmark the performance of each institution
compared to its statistical peers from other states, wherever valid comparable data
is available.
(c)Determine the optimal allocation of state appropriated funds to each
postsecondary institution based upon operational costs, performance outcomes,
and performance-based, targeted incentives. However, the amount to be allocated
based upon performance outcomes must be sufficient to incentivize increased
performance at the campus level.
(d)Consider the characteristics unique to each individual postsecondary institution,
including community and technical colleges and professional schools, such as
student enrollment characteristics and geographic location and delivery area.
(e) Include safeguards to prevent sudden, dramatic changes in the funding level of
any postsecondary institution.
(f)Contain a time line for full formula implementation.
(4)Requires that formula implementation shall begin as soon as practicable, but not later
than the beginning of the 2016-2017 fiscal year.
(5)Requires the commissioner of higher education, not later than December 31, 2015, to
submit a written report containing the proposed outcomes-based funding formula and
related recommendations for related policy and statutory changes to the Board of Regents
for its consideration and approval.
(6)Requires the Board of Regents to review the report and subsequently submit the report,
the proposed outcomes-based funding formula, and the board's comments and
recommendations to the Senate Committee on Education, the Senate Committee on Finance, the House Committee on Education, and the House Committee on
Appropriations, not later than January 31, 2016.
(7)Requires the commissioner of higher education and the postsecondary system presidents
to collectively re-evaluate the postsecondary education funding formula at least once
every two years and submit a written report regarding the formula's effectiveness and the
performance of each postsecondary institution to the Senate Committee on Education, the
Senate Committee on Finance, the House Committee on Education, and the House
Committee on Appropriations.
Effective upon signature of the governor or lapse of time for gubernatorial action.
(Adds R.S. 17:3129.2)