2016 -- H 7428

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2016

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A N   A C T

RELATING TO EDUCATION -- POSTSECONDARY EDUCATION PERFORMANCE

FUNDING

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

     Date Introduced: January 29, 2016

     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 106

THE PERFORMANCE FUNDING ACT OF 2016

     16-106-1. Short title. -- This act shall be known and may be cited as "The Performance

Funding Act of 2016."

     16-106-2. 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.

     16-106-3. Performance-based funding – Community College of Rhode Island. – (a)

Beginning in FY 2019, 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 revenue greater than the base amount received pursuant to

the FY 2017 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, in consultation

with the council on postsecondary education. Measures shall begin to be collected in FY 2017.

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 be consistent with the purposes, role, scope

and mission of the community college, and shall include the following metrics:

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

in relation to enrollment and prior years, of associate's 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, and weighted to increase high demand, high wage field certificates

consistent with CCRI's purpose;

     (3) One measure as agreed to by the commissioner of postsecondary education and the

president of CCRI, who shall consider faculty, staff and student input; and

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

education.

     (d) Weights may be assigned to any of the aforementioned metrics to reinforce the

purposes, role, scope and mission of CCRI, the economic needs of the state and the socio-

economic status of the students. The commissioner may consider the college's improvements in

said metrics when determining whether the college has satisfied the annual measure despite not

reaching the overall goal.

     (e) The commissioner shall provide faculty and students an opportunity to provide input

on the development of performance measures.

     16-106-4. Performance-based funding – Rhode Island College and University of

Rhode Island. – (a) Beginning in FY 2019, funding for Rhode Island College ("RIC") and the

University of Rhode Island ("URI") shall include a performance-based component utilizing all

additional allocations of otherwise unrestricted higher education general revenue greater than the

base amount received pursuant to the FY 2017 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, in consultation

with the council on postsecondary education. Measures shall begin to be collected in FY 2017.

These measures may include and incorporate outcomes or goals from multiple previous years.

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The lack of information from previous years, however, will not affect the use of performance-

based measures.

     (c) RIC and URI shall each have unique measures consistent with each institution’s

purpose, role, scope and mission. The performance-based measures shall include the following

metrics:

     (1) The number and percentage, including growth in relation to enrollment and prior

years of bachelor's degrees awarded to first-time, full-time students within four (4) years and six

(6) years including summer graduates;

     (2) The number of degrees awarded that are tied to Rhode Island’s high demand, high

wage employment opportunities consistent with the institution's mission;

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

postsecondary education and the president of RIC, who shall consider faculty, staff and student

input; and one measure that applies only to URI as agreed to by the commissioner of

postsecondary education and the president of URI, who shall consider faculty, staff and student

input; and

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

education.

     (d) Weights may be assigned to any of the aforementioned metrics to either or both of the

institutions to reinforce the mission of RIC and URI, respectively, the economic needs of the state

and the socio-economic status of the students. The commissioner may consider the institutions'

improvements in said metrics when determining whether it has satisfied the annual measure

despite not reaching the overall goal.

     (e) The commissioner shall provide faculty and students an opportunity to provide input

on the development of performance measures.

     16-106-5. Performance not achieved. – If a public institution of higher education has

failed to achieve one or more of the performance-based metrics set forth in accordance with this

chapter, the funds associated with each unachieved metric, shall be distributed to the same

institution for corrective action, with oversight by the office of the postsecondary commissioner.

     16-106-6. 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 accordance with this

chapter for the Community College of Rhode Island, Rhode Island College, and the University

Rhode Island.

     (b) The commissioner of postsecondary education, in consultation with the council on

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postsecondary education, shall revise the metrics at a time when performance has reached a pre-

defined level. Future metrics shall further goals identified by the board of education and the

governor's workforce board, and the applicable purpose and mission of the institution of higher

education to which they apply.

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

associated metrics prescribed in this chapter on its website.

     16-106-7. State postsecondary education funding formula. – (a) Implementation of a

state postsecondary education funding formula shall be contingent upon the approval of the

general assembly. On or before April 1, 2017, the commissioner of postsecondary education shall

present to the board of education and the general assembly, the following:

     (1) A proposal for the further definition of the budget for "otherwise unrestricted higher

education general revenue" in accordance with §§16-106-3(a) and 16-106-4(a); and

     (2) With input from an advisory workgroup composed of representatives of the

administration and faculty of Community College of Rhode Island, Rhode Island College, and the

University of Rhode Island, the commissioner shall develop a proposal for a funding formula for

calculating budgetary needs of the public postsecondary institutions.

     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 2016" that would provide that

new, unrestricted funding, for Rhode Island's postsecondary state schools be based upon certain

performance measures.

     This act would take effect upon passage.

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