Chapter 521
2016 -- S 2392
Enacted 08/11/2016

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

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) 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) 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) 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
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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LC003949
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