2015 -- H 5792

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2015

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A N   A C T

RELATING TO EDUCATION -- POSTSECONDARY EDUCATION PERFORMANCE

FUNDING

     Introduced By: Representatives McNamara, Naughton, Ruggiero, Amore, and

     Date Introduced: March 05, 2015

     Referred To: House Finance

     It is enacted by the General Assembly as follows:

     SECTION 1. Title 16 of the General Laws entitled "EDUCATION" is hereby amended

by adding thereto the following chapter:

CHAPTER 105

THE PERFORMANCE FUNDING ACT OF 2015

     16-105-1. Short title. -- This act shall be known and may be cited as "The Performance

Funding Act of 2015."

     16-105-2. Public postsecondary performance-based funding. -- The commissioner of

postsecondary education is hereby directed to implement a performance-based funding formula

that meets the requirements of this chapter, in consultation with the council on postsecondary

education.

     16-105-3. Performance-based funding – Community College of Rhode Island. – (a)

Beginning in FY 2018, funding for the Community College of Rhode Island (CCRI) shall include

a performance-based component utilizing all additional allocations of otherwise unrestricted

higher education general funds greater than the base amount received pursuant to the FY 2016

budget as enacted of total unrestricted state higher education funding.

     (b) Data on which to base performance-based measures as described in subsection (c) of

this section shall be defined by the commissioner of postsecondary education and begin to be

collected in the FY 2016. These measures may include and incorporate outcomes or goals from

multiple previous years. The lack of information from previous years, however, will not affect the

use of performance-based measures.

     (c) The performance-based measures shall include the following metrics:

     (1) For first-time, full-time students, the number and percentage, including growth

thereof, of associate degrees awarded to students within two (2) years and three (3) years,

including summer graduates; for part-time students, performance-based measures shall be based

on incremental milestones made toward achieving degree or certificate completion;

     (2) The number of one-year industry-recognized certificates earned by students within an

expected amount of time as determined by the commissioner of postsecondary education and

weighted to increase high demand, high wage field certificates;

     (3) One measure as agreed to by the president of CCRI and the commissioner of

postsecondary education; and

     (4) Any other measures that are deemed appropriate by the council of postsecondary

education.

     (d) The commissioner of postsecondary education may assign weights to the

aforementioned metrics to reinforce the mission of CCRI, the economic needs of the state and the

socio-economic status of the students.

     16-105-4. Performance-based funding – Rhode Island College and University of

Rhode Island. – (a) Beginning in FY 2018, funding for Rhode Island (RIC) and the University of

Rhode Island (URI) shall include a performance-based component utilizing all additional

allocations of otherwise unrestricted higher education general funds greater than the base amount

received pursuant to the FY 2016 budget as enacted, of total unrestricted state higher education

funding.

     (b) Data on which to base performance-based measures as described in subsection (c) of

this section shall be defined by the commissioner of postsecondary education and begin to be

collected in the FY 2016. These measures may include and incorporate outcomes or goals from

multiple previous years. The lack of information from previous years, however, will not affect the

use of performance-based measures.

     (c) The performance-based measures shall include the following metrics:

     (1) The number and percentage, including growth of bachelor's degrees awarded to first-

time, full-time students within four (4) years and six (6) years including summer graduates; and

     (2) The number of degrees tied to Rhode Island’s high demand, high wage employment

opportunities;

     (3) One measure that applies only to RIC as agreed to by the president of RIC and the

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commissioner of postsecondary education and one measure that applies only to URI as agreed to

by the president of URI and the commissioner of postsecondary education; and

     (4) Any other measures that are deemed appropriate by the council of postsecondary

education.

     (d) The commissioner of postsecondary education may assign weights to the

aforementioned metrics to either or both of the institutions to reinforce the mission of RIC and

URI, the economic needs of the state and the socio-economic status of the students.

     16-105-5. Performance not achieved. -- If an institution has failed to meet any of the

performance metrics set forth in this chapter or as defined by the commissioner of postsecondary

education, the associated funds shall be distributed to the institution for corrective action and

oversight by the office of the postsecondary commissioner.

     16-105-6. Accountability – Authority to revise and transparency. – (a) The

commissioner of postsecondary education shall monitor, publish and report to the council on

postsecondary education the level of performance on all metrics identified in this chapter for

Community College of Rhode Island, Rhode Island College, and the University Rhode Island.

     (b) The commissioner of postsecondary education shall revise the metrics at a time when

performance has reached a pre-defined level as determined by the commissioner of postsecondary

education, in consultation with the appropriate college or university president. Future metrics

shall further goals identified by the board of education, and the governor's workforce board.

     (c) Each public higher education institution shall publish its performance on all of its

associated metrics prescribed in this chapter on its website.

     16-105-7. State higher education funding formula. -- The commissioner of

postsecondary education shall develop and present to the board of education and the general

assembly a proposal for a method for calculating budgetary needs of the public postsecondary

institutions, that shall include the performance funding component required in this chapter, on or

before April 1, 2016. Implementation of a state higher education funding formula shall be

contingent upon the approval of the general assembly.

     SECTION 2. This act shall take effect upon passage.

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO EDUCATION -- POSTSECONDARY EDUCATION PERFORMANCE

FUNDING

***

     This act would establish "The Performance Funding Act of 2015" to provide a

mechanism for funding Rhode Island's post-secondary state schools based upon the number of

students earning degrees and credits at those schools.

     This act would take effect upon passage.

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