| How
did the performance funding program come about?
The performance
funding program was established in 1979. The program
addressed public policy concerns regarding the need
to strengthen Tennessee’s public higher education
system and make institutions more competitive in the
region as well as from a national perspective. The ultimate
goal of the performance funding is to promote the provision
of the highest quality of higher education to Tennesseans
enrolled in higher education throughout the state.
Is Tennessee the only
state with a performance funding program?
A recent study
by Burke and Modarresi (2002), noted that 19 states
had implemented performance funding policies and nine
more were almost at the adoption stage in 1999. South
Carolina, Kentucky, Arkansas, Missouri, Texas, and New
Mexico are among the states that are linking funding
to retention/graduation rates, placement of graduates,
and rates of transfer to four-year institutions. However,
no other state has been as prescriptive as Tennessee
of developing an accountability system that incorporates
common standardized assessments across programs and
institutions, and that bases funding levels on specific
test scores and student and alumni satisfaction ratings.
What is the role of the
governing boards with regard to performance funding?
The Tennessee
Board of Regents (TBR) and the University of Tennessee
(UT) as system governing boards are committed to academic
excellence and institutional quality and actively support
the coordination and administration of the performance
funding program. TBR and UT are also participants in
the development of the performance funding standards
and assessments.
What types of information is collected in the
performance funding program?
Approximately
60% of the indicators are devoted to student performance
and satisfaction. The remaining 40% focus on academic
program and institutional indicators. Provided below
is a summary of the student and institutional indicators:
• Student Performance
and Satisfaction Indicators
-- Performance on general education exams
-- Pass rates on licensure exams
-- Performance on subject field exams
-- Student and alumni satisfaction
• Program
and Institutional Indicators
-- Academic program quality (undergraduate and graduate
programs)
-- Number and percent of accredited programs
-- Employer satisfaction
-- Retention rates (freshmen and transfer students)
-- Graduation rates
-- Number of transfer students
-- State Strategic Planning Goals (teacher education,
distance learning/technology, continuing education,
collaborative initiatives; and faculty development)
-- Institutional Strategic Planning Goals (research
funding, public service, student/faculty diversity)
How much money can colleges and universities
get from performance funding and where does this money
go?
Institutions
are capable of earning up to 5.45 percent of their state
operating appropriations. The program is based upon
a point scale from 0 to 100, depending on institutional
performance on assessment standards during an academic
year (100 points would achieve the maximum of 5.45 percent).
These performance funding dollars are made available
to the college’s general fund to be used for institutional
priorities at the discretion of the institution.
Why doesn’t THEC
just give the money to colleges?
The money resulting
from performance funding is not a gift; these financial
resources are earned for meritorious performance. This
program is a rare incentive opportunity for institutions
to earn resources above and beyond formula-based appropriations.
How do students benefit
from the performance funding program?
Students are
the direct beneficiaries of performance funding in two
major ways. First, improvements generated from assessment
results are focused on improving the quality of instruction
and academic performance; such improvements directly
and positively impact students. Second, resources earned
through the performance funding program enable institutions
to fund additional improvements and needs, such as instructional
equipment and supplies, beyond operational budgets.
What does THEC expect of faculty in the performance
funding program?
THEC expects
that faculty are aware of the overall performance funding
program, especially as it relates to assessment of students
and academic programs. In addition, faculty need to
be active participants in scheduling, conducting, and
use of associated assessment as it relates to their
areas of responsibility.
What does THEC expect
of colleges and universities in the performance funding
program?
THEC
expects colleges and universities to use this program
to improve institutional programs, services, and operations,
especially those related to student outcomes and performance.
It is also expected that colleges will be able to provide
a high quality level of education to Tennesseans across
the state, based on the assessment results.
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