Interim Joint Committee on Appropriations and Revenue

 

Budget Review Subcommittee on Postsecondary Education

 

Minutes of the<MeetNo1> 1st Meeting

of the 2013 Interim

 

<MeetMDY1> June 27, 2013

 

Call to Order and Roll Call

The<MeetNo2> 1st meeting of the Budget Review Subcommittee on Postsecondary Education of the Interim Joint Committee on Appropriations and Revenue was held on<Day> Thursday,<MeetMDY2> June 27, 2013, at<MeetTime> 10:00 AM, in<Room> Room 154 of the Capitol Annex. Representative Arnold Simpson, Chair, called the meeting to order, and the secretary called the roll.

 

Present were:

 

Members:<Members> Senator Stan Humphries, Co-Chair; Representative Arnold Simpson, Co-Chair; Senators Gerald A. Neal, Johnny Ray Turner, and Mike Wilson; Representatives Julie Raque Adams, Derrick Graham, Reginald Meeks, Jody Richards, and Gerald Watkins.

 

Guests: Robert L. King, President, Council on Postsecondary Education (CPE); Scott Boelscher, Senior Associate, Budget, Policy and Planning, Council on Postsecondary Education.

 

LRC Staff: Perry Papka and Amie Elam.

 

Performance-Based Funding in Public Higher Education

President King and Mr. Scott Boelscher gave an overview of performance-based funding and outlined examples of other states using performance-based funding models.

 

In response to a question by Chairman Simpson, Mr. Boelscher said that the changes in funding models were driven by different people or groups in each state.

 

In response to a question by Senator Wilson, Mr. Boelscher said that Tennessee had a seamless transition from the old funding model to the new performance model. President King said that several states have stop-loss provisions to cushion the transition between funding models.

 

In response to a question by Representative Richards, Mr. Boelscher said that campuses are protected in the short term but that there will be a shift in funding over time.

 

In response to a question by Representative Adams, President King said that he is providing information and not advocating for a performance-based funding model.

 

In response to a question by Senator Neal, President King said that all Kentucky universities support the model that CPE presented for the current biennium. There is little research on the results of a performance funding model. Campuses respond well to financial incentives.

 

In response to a question by Senator Wilson, President King said that university support remains for the basic model that CPE presented two years ago. CPE is researching retention metrics instead of graduation metrics as a way of showing improvement faster.

 

In response to a question by Representative Richards, President King explained that each campus manages to its resources. Taking money from a university that is receiving funds will result in cutting programs and faculty to accommodate the change. A performance-based funding model would start to remove some of the disparities because of the rational way of distributing funds.

 

In response to a comment by Representative Graham stating that premiere education states were not featured on the map highlighting states that have adopted these models, Mr. Boelscher said that many states are interested in performance-based funding models and are considering whether to use them.

 

In response to a question by Representative Meeks, President King said that most performance-based funding models include a financial premium to improve outcomes for specific populations such as underrepresented minority students.

 

            Chairman Simpson stated that Kentucky’s higher education institutions must continue to be challenged to do a better job developing better outcomes for students. The current funding model needs logic behind it to ensure that the product is a desirable one.

           

There being no further business before the committee, the meeting was adjourned at 11:39 a.m.