This from Diverse Issues in Higher Education:
A proposal by the Kentucky Council on Postsecondary Education would link performance by Kentucky's public universities to extra state funding. The plan, put forth Thursday, is part of an effort to boost Kentucky's low national rankings in educational attainment. The council will include it in a $2.4 billion budget request for the next biennium, which begins July 1.
The council's senior vice president for budget policy, John Hayek, said the measure will put pressure on institutions to improve.“I think that is what the state wants from its investment,” Hayek said. “I think most taxpayers would want us channeling funds to institutions that are helping students graduate.” University of Kentucky Provost Kumble Subbaswamy told The Courier-Journal that the school welcomes the accountability sought by the measure (http://cjky.it/t6avbg ).
It would establish performance-based standards for allocating tax dollars to state universities a strategy that officials hope to expand in the future. The council plans to finalize details of the program in February. In general, it would set aside $25 million in state funds during the second year of the biennium for the public universities and the Kentucky Community and Technical College System.
Universities would receive money from the fund based on how well they improve graduation rates and degree production. They also would be called on to close the achievement gap for underprepared students and raise the number of student transfers from the community and technical college system to the four-year universities. The new funding totals about 2.5 percent of the state's annual appropriation to public universities, which Hayek said is enough to get attention without creating financial instability...