2016 -- S 2392

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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 - THE PERFORMANCE INCENTIVE FUNDING ACT OF

2016

     Introduced By: Senators Paiva Weed, Ruggerio, Goodwin, Gallo, and Metts

     Date Introduced: February 11, 2016

     Referred To: Senate Education

     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 INCENTIVE FUNDING ACT OF 2016

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

Performance Incentive Funding Act of 2016".

     16-106-2. Public postsecondary performance incentive funding. -- The commissioner

of postsecondary education is hereby directed to implement a performance incentive funding

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

postsecondary education.

     16-106-3. Performance incentive 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 revenue 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 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 purpose, role, scope and

mission of CCRI, 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 in 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 or longer 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 of postsecondary

education.

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

purpose, 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 incentive funding – Rhode Island College and University of

Rhode Island. -- (a) Beginning in FY 2018, 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 2016 budget as enacted, of total unrestricted state higher

education funding.

     (b) Data on which to base performance 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

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

performance-based measures.

     (c) Rhode Island College and the University of Rhode Island 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 of postsecondary

education.

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

institutions to reinforce the missions 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 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 of

Rhode Island.

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

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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 October 1, 2016, 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

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 - THE PERFORMANCE INCENTIVE FUNDING ACT OF

2016

***

     This act would add a performance-based component to the state funding formulas for

CCRI, RIC and URI. It directs the commissioner of postsecondary education, along with the

council on postsecondary education, to create a performance formula by utilizing certain specific

measures. Implementation of a postsecondary education funding formula would need prior

approval of the general assembly.

     This act would take effect upon passage.

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