Bill
Bill > A1102
NJ A1102
NJ A1102Directs Secretary of Higher Education to establish performance-based funding plans for public institutions of higher education.
summary
Introduced
01/13/2026
01/13/2026
In Committee
01/13/2026
01/13/2026
Crossed Over
Passed
Dead
Introduced Session
2026-2027 Regular Session
Bill Summary
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.
AI Summary
This bill directs the Secretary of Higher Education to create performance-based funding plans for all public colleges and universities in the state, aiming to improve accountability, efficiency, and student success, including satisfactory progression, matriculation, and graduation rates. The Secretary will develop separate plans for county colleges and four-year public institutions, with the option for a distinct plan for public research institutions, and will collaborate with institutional leaders, industry representatives, faculty and staff organizations, and other stakeholders to establish a system where a portion of State operating aid is allocated based on institutions meeting specific performance measures. These measures will include, but are not limited to, degree and credit completion for county colleges, and graduation rates, retention, transfers, and job placement for four-year institutions, with a focus on reducing achievement gaps for disadvantaged students. The bill outlines a gradual implementation schedule, starting with 5% of State operating aid affected in fiscal year 2019 and increasing to 25% by fiscal year 2023, with fiscal year 2018 serving as a "learning year" to report potential impacts without financial consequences, and includes a stop-loss provision for fiscal year 2019 to limit reductions in State operating aid to no more than 2% compared to the previous year. The Secretary will also review performance-funding models from other states and ensure the plans are sensitive to the diverse missions of each institution and responsive to changes within them, holding them accountable for instructional quality and student learning, with all plans and results to be publicly posted online annually.
Committee Categories
Education
Sponsors (1)
Last Action
Introduced, Referred to Assembly Higher Education Committee (on 01/13/2026)
Official Document
bill text
bill summary
Loading...
bill summary
Loading...
bill summary
| Document Type | Source Location |
|---|---|
| State Bill Page | https://www.njleg.state.nj.us/bill-search/2026/A1102 |
| BillText | https://pub.njleg.gov/Bills/2026/A1500/1102_I1.HTM |
Loading...