The future of performance-based funding for Kentucky's universities is now back in the hands of the governor and state lawmakers. Members of Eastern Kentucky University's Board of Regents received an update Monday.
Kentucky is joining 36 other states with state funding for higher education based on performance. The criteria for allocation of some funds includes how students complete courses and obtain degrees and the efficiency of operations.
Governor Matt Bevin has suggested moving to full performance funding by 2020. EKU Vice President for Engagement and Regional Stewardship David McFaddin said lawmakers could move even faster. “I think anything is possible," McFaddin said. We could very easily move to 100 percent immediately if that’s what the policy makers decide they want to do.”
With significant dollars needed to address state pensions, Medicaid, and corrections, McFaddin doesn’t envision higher education seeing additional money through performance-based funding. “With the absence of new money, that means we’re going to be shifting dollars from one institution to the other within this model, so there’s a possibility that someone, maybe more than one institutions end up with more funds, but it will be at the expense of the other institutions,” he said.
A performance-based funding model developed by the state's university presidents went to the governor last week. Lawmakers are expected in 2017 to decide how to implement funding and at what pace.
EKU has plans to eliminate 10 majors, including French, to meet a $13 million shortfall.