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  • NJ A3097
  • Directs Secretary of Higher Education to establish performance-based funding plans for public institutions of higher education.
In Committee
Crossed OverPassedSignedDead/Failed/Vetoed
2016-2017 Regular Session
This bill directs the Secretary of Higher Education to develop performance-based funding plans for the public institutions of higher education. The purpose of the plans will be to increase accountability and efficiency and improve student outcomes at the public institutions. In addition, the plans should seek to promote and increase the satisfactory progression, matriculation, and graduation of all students enrolled in the public institutions. The secretary will create a funding plan for the county colleges and a funding plan for the four-year public institutions, and may create a separate funding plan for the public research institutions if deemed appropriate. Under the bill's provisions, the secretary is directed to work with the presidents and governing boards of the public institutions of higher education, business and industry, Statewide organizations representing faculty and staff, and other stakeholders to develop a system for allocating a percentage of State operating aid based on the institution's achievement of established measures. The secretary will review performance-funding models in other states to assess funding measures and methodologies, and the weighting of measures. The plans should be sensitive to the differing programmatic missions of the institutions, responsive to changes within the institutions, and hold institutions accountable for the quality of instruction and student learning. The bill establishes a number of performance measures, including degree and credit completion, to be included in the performance-based funding plans; however, the secretary is not limited to those measures. The bill establishes a schedule that will gradually phase-in the percentage of each public institution's State operating aid that will be affected by the performance-based funding plan. Beginning in fiscal year 2019, the following percentages and schedule will apply: - 5% for fiscal year 2019; - 10% for fiscal year 2020; - 15% for fiscal year 2021; - 20% for fiscal year 2022; and - 25% for fiscal year 2023 and each successive fiscal year. Fiscal year 2018 will be a "learning year" in which no institution will be affected by the performance-based funding plans, but the secretary will provide each institution with a detailed report on what the impact of the plans would have been, if they had been implemented at 5% in that year. The bill includes a stop-loss provision for fiscal year 2019, so that no institution will experience a reduction of more than 2% in State operating aid as compared to fiscal year 2018.
Not specified
Introduced, Referred to Assembly Higher Education Committee  (on 2/18/2016)
Date Chamber Action Description
2/18/2016 A Introduced, Referred to Assembly Higher Education Committee
Date Motion Yea Nay Other
None specified