Developing Performance Funding Model for Illinois Higher Education

1. A Starting Point for Developing aPerformance Funding Model for Illinois Performance Funding Steering Committee Governors State University August 30, 2011

2. Some Givens • Dealing only with the performance funding component of the larger financing model for Illinois higher education • Performance funding will be implemented with or without new money (?)

3. Design Principles • Performance funding aligned with goals as stated in the public agenda • Create different models for different kinds of institutions • Research universities, comprehensive universities, community colleges • Encourage mission differentiation • Gives all institutions an opportunity to benefit • Include provisions that reward success with underserved populations • Keep the driving metrics • Few in number • Clear in intent and presentation • Reward continuous improvement rather than achievement of fixed targets • Avoid metrics/drivers that can be gamed • Use numbers, not rates

4. Implementation Principles • Phase-in • Stop-loss – but not hold harmless • Have a strategy for ensuring that quality isn’t compromised in the process of increasing degree production

5. Public Agenda Goals • Increase educational attainment to match best-performing states • Eliminate achievement gaps by race, ethnicity, socioeconomic status, gender, and disability • Increase number of adults completing a postsecondary credential • Reduce geographic disparities in educational attainment • Ensure college affordability for students, families, and taxpayers • Make Illinois one of the five most affordable states in the country to get a college education (continued…)

6. Public Agenda Goals(continued) • Increase the number of high-quality postsecondary credentials to meet the demands of the economy and an increasingly global society • Increase the number of people with high-quality postsecondary credentials • Improve transitions all along the education pipeline • Increase the number of postsecondary degrees in fields of critical skills shortages • Better integrate Illinois’ educational, research, and innovation assets to meet economic needs of the state and its regions • Boost Illinois into the ranks of the five states with the fastest growing economies

7. Remember • Performance funding isn’t the only tool in the policy tool box • Not all goals have to be reflected in the performance funding metrics

8. Best Candidates for Inclusion in Performance Funding Model • Increase educational attainment to match best-performing states • Eliminate achievement gaps by race, ethnicity, socioeconomic status, gender, and disability • Increase number of adults completing a postsecondary credential • Reduce geographic disparities in educational attainment • Ensure college affordability for students, families, and taxpayers • Make Illinois one of the five most affordable states in the country to get a college education (continued…)

9. Best Candidates for Inclusion in Performance Funding Model(continued) • Increase the number of high-quality postsecondary credentials to meet the demands of the economy and an increasingly global society • Increase the number of people with high-quality postsecondary credentials • Improve transitions all along the education pipeline • Increase the number of postsecondary degrees in fields of critical skills shortages • Better integrate Illinois’ educational, research, and innovation assets to meet economic needs of the state and its regions • Boost Illinois into the ranks of the five states with the fastest growing economies

10. Some Possible Components Comprehensive Four Year Universities • Increase in numbers of baccalaureate degrees awarded • Increases in numbers of baccalaureate graduates who are • Hispanic, African American, or Native American • Pell/MAP eligible • Male • Disabled • Recipients of degrees in critical needs fields (continued…)

11. Some Possible Components(continued) ResearchUniversities • Increases in numbers of baccalaureate graduates who are • Hispanic, African American, or Native American • Pell/MAP eligible • Male • Disabled • Recipients of degrees in critical needs fields • Increase in numbers of doctoral degrees awarded • Increase in research expenditures of funds from external sources (continued…)

12. Some Possible Components(continued) Community Colleges • Increases in numbers of individuals who • Receive AA degrees • Receive industry-recognized high-value certificates requiring a year or more of study • Transfer to a 4-year institute after accumulating 36 credits (or number in transfer core) • Increase in numbers of completers who are • Hispanic, African American, or Native American • Pell/MAP eligible • Male • Disabled • Recipients of degrees in critical needs fields • Academically at risk – started in developmental ed • Adults – entered college after age 24 • Increase in numbers of students who • Successfully complete related college level course after initial placement in developmental ed

13. Suggestions Regarding Implementation • Specify by enumeration those institutions to be treated as research universities • Create separate criteria for each type of institution • A percent of state general fund appropriations to each • Phase in • 3% First year • 3% additional each year for next 4 years • Stop-loss • Cumulative decreases (contributions to pool minus rewards) limited to 5% in first 3 years