Panel considers productivity in higher education funding

Friday, Jan. 28, 2000 | 9:48 a.m.

But that may change because the state is in the middle of reviewing its higher education funding formulas. Any proposed changes would be considered by the 2001 Legislature.

A legislatively commissioned panel met Thursday, discussing the "performance outcome" approach as part of a larger conversation about how other states fund higher education.

"Formulas can take you in the wrong direction and actually drive inefficiency," said Regent Mark Alden, who attended the meeting but is not a member of the panel. "We need to take a hard look at outcomes. The way we do it now, you can offer classes with no outcomes."

The University and Community College System of Nevada gets money based on the number of students enrolling in classes.

Nevada's funding formulas are about 13 years old, and the 1999 Legislature decided to study higher education funding after southern Nevada politicians and higher education leaders complained that slower-growing northern Nevada schools are being treated better than their counterparts in Clark County.

A national consultant found in last spring that all but about $500 of a $3,000 per-student difference in funding between students at UNR and UNLV could be considered justifiable based on programming differences between the two campuses.

So long as the state is reviewing and could overhaul its funding approach for higher education, Alden said, it would make sense to look at rewarding the University of Nevada, Las Vegas and the University of Nevada, Reno based on whether they achieve goals to graduate more people in high-demand areas.

A California-based consultant hired to help the Committee to Study the Funding of Higher Education told panelists there are 30 states with some level of performance-based funding.

Consultant William Pickens didn't advocate performance-based funding for Nevada, but he told panelists they should look at funding approaches by four states that weigh productivity.

Pickens said he will return to the panel with funding information about a couple of dozen states, paying particular attention to Illinois, South Carolina, Texas and Tennessee.

Those states, he said, have budgetary incentives for schools that make improvements in such areas as graduation rates, student diversity, student job placement and employer satisfaction with the quality of graduates.

UNR President Joe Crowley has watched the trend of performance-based budgeting and said it works well in some states and not as well in others.

"It's a good idea as long as the institution participates in their development," said Crowley, a member of the legislative funding panel. "Clearly, that's what's coming. Whether it happens this session, who knows? But I think eventually it will happen."