Performance Based Funding

Jeremy Wilburn / Flickr (Creative Commons)

The state Senate recently approved a bill that would tie higher education funding to Kentucky universities’ ability to produce more and better graduates.

Critics of the present funding model say that schools are funded with an outdated system that doesn’t account for adjustments in enrollment numbers and graduation rates.

Kentucky’s public universities could receive money based on their performance under a new initiative being developed by the Council on Postsecondary Education. 

Under the proposal, universities that award more degrees and graduate more minority or low-income students could be eligible to receive more money from the agency, said Council President Bob King noting that the initiative is not yet finalized.