Bill Text: NJ A2853 | 2016-2017 | Regular Session | Introduced
Bill Title: Directs Secretary of Higher Education to establish performance-based funding plan for public institutions of higher education.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2016-02-16 - Introduced, Referred to Assembly Higher Education Committee [A2853 Detail]
Download: New_Jersey-2016-A2853-Introduced.html
Sponsored by:
Assemblyman JOSEPH A. LAGANA
District 38 (Bergen and Passaic)
SYNOPSIS
Directs Secretary of Higher Education to establish performance-based funding plan for public institutions of higher education.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning performance-based funding for public institutions of higher education and supplementing chapter 3B of Title 18A of the New Jersey Statutes.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. a. The Secretary of Higher Education shall develop a performance-based funding plan for public institutions of higher education. The purpose of the plan shall be to increase accountability and efficiency and improve student outcomes at the public institutions of higher education.
The secretary shall collaborate with the presidents and the governing boards of the public institutions of higher education, business and industry, Statewide organizations representing faculty and staff, and such other stakeholders as the secretary deems appropriate, to develop a system for allocating a percentage of State operating aid to each public institution based upon the institution's achievement of established measures.
In developing the performance-based funding plan, the secretary shall review performance-based funding models in other states, including funding measures and methodologies, and the weighting of measures to better recognize the unique mission of each public institution of higher education.
The performance-based funding plan shall seek to promote and increase the satisfactory progression, matriculation, and graduation of all students enrolled in State-supported public institutions of higher education. The plan shall be sensitive to the differing programmatic missions of the institutions, responsive to changes within the institutions, and shall hold institutions accountable for the quality of instruction and student learning.
b. The performance-based funding plan shall include, but is not limited to, the following measures:
(1) student graduation rate;
(2) student retention;
(3) student transfers;
(4) completion of degrees and certificates;
(5) types of degrees and certificates awarded;
(6) job placement and employment rate upon graduation;
(7) critical needs shortage areas;
(8) research activity; and
(9) economically disadvantaged students.
2. Upon approval of the performance-based funding plan pursuant to section 3 of this act, State operating aid appropriated to each public institution of higher education shall incorporate the performance-based funding plan in accordance with the following percentages and schedule:
a. 5% for fiscal year 2018;
b. 10% for fiscal year 2019;
c. 15% for fiscal year 2020;
d. 20% for fiscal year 2021; and
e. 25% for fiscal year 2022 and each successive fiscal year.
3. The Governor shall submit the performance-based funding plan to the Legislature at least 60 days prior to the FY 2018 budget address. The performance-based funding plan shall be deemed approved by the Legislature at the end of 60 calendar days after the date on which the plan is transmitted to the Legislature, or if the Legislature is not in session on the 60th day, then on the next succeeding day on which it is meeting, unless between the date of transmittal and the end of the 60-day period, the Legislature passes a concurrent resolution rejecting the plan.
4. The secretary shall review the performance-based funding plan, established pursuant to section 1 of this act, on an annual basis and make written recommendations by September 1 of each year to the Governor, and to the Legislature pursuant to section 2 of P.L.1991, c.164 (C.52:14-19.1), for appropriate modifications or changes.
5. This act shall take effect immediately.
STATEMENT
This bill authorizes the Secretary of Higher Education to develop a performance-based funding plan for public institutions of higher education. The purpose of the plan will be to increase accountability and efficiency and improve student outcomes at the public institutions. In addition, the plan should seek to promote and increase the satisfactory progression, matriculation, and graduation of all students enrolled in the public institutions.
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 in order to develop a funding plan to best achieve student success in the State of New Jersey. The secretary will review performance-funding models in other states, including funding measures and methodologies, and the weighting of measures to better recognize the unique missions of each public institution of higher education. The plan 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 nine performance measures, such as graduation rate, degree completion, and student job placement rate, to be included in the performance-based funding plan; however, the commission is not limited to those measures.
The Governor will submit the performance-based funding plan to the Legislature 60 days prior to the FY 2018 budget address. The performance-based funding plan will be deemed approved by the Legislature at the end of 60 calendar days after the date on which the plan is transmitted to the Legislature, or if the Legislature is not in session on the 60th day, then on the next succeeding day on which it is meeting, unless between the date of transmittal and the end of the 60-day period, the Legislature passes a concurrent resolution rejecting the plan.
Upon the approval of the funding plan, a percentage of each public institution's State operating aid will be based on the performance-based funding plan as follows:
a. 5% for fiscal year 2018;
b. 10% for fiscal year 2019;
c. 15% for fiscal year 2020;
d. 20% for fiscal year 2021; and
e. 25% for fiscal year 2022 and each successive fiscal year.
