Results matter, says Indiana Higher Education Commissioner Teresa Lubbers. She wants to reward state colleges and universities with funding in return for improved performance, reports the Lafayette Journal and Courier.
Under the recommendations, more than $123 million would be allotted to a performance-based component of the state’s higher education funding formula. That’s roughly triple the amount set aside for that purpose during the last two-year budget cycle.
The proposal reallocates 5 percent of base higher education funding to a performance-based formula, which favors measures such as college degree production over student enrollment.
“Indiana’s overriding need to educate more students with limited dollars is driving our focus on increasing college completion and rewarding results,” Lubbers said.
The commission’s performance-funding formula emphasizes the number of degrees colleges produced overall, degrees completed by students on time and degrees earned by low-income students. Colleges also are rewarded for increasing the number of credits earned by students and for bringing in additional research funding.