January 20, 2011

PASSHE revises performance funding program

Contact: Kevin Hensil, khensil@passhe.edu

PASSHE was among the first public university systems in the nation to voluntarily implement performance funding, using a portion of its funds each year since 2000 to encourage the universities to improve in areas such as student retention and graduation rates, campus diversity, program quality and faculty productivity. The performance funding program has resulted in significant improvements in each of these areas.

Changes approved to the program by the Board will help ensure the universities continue to move forward on behalf of students. The revisions focus on improving student success, increasing access to PASSHE universities and ensuring stewardship of public resources.

“Performance funding has been a key driver in PASSHE’s success over the last decade, including our rising graduation rates,” said Chancellor John C. Cavanaugh. “We must continue to get even better at everything we do in order to ensure both our students’ success and the economic prosperity of the Commonwealth. The revised performance funding program will help make sure that happens.”

Following a transition year, the universities will be measured on five common indicators and five additional indicators, which the universities will be able to choose based on their strategic directions.

For all of the indicators, the universities will be measured on their progress toward institution-specific goals and against external comparisons or expectations. Whenever possible, external comparisons will be based on similar universities participating in national studies.

All of the indicators will be based on the three basic themes of student success, access and stewardship, which, in turn, support PASSHE’s recently developed strategic initiatives. The strategic initiatives are predicated on the need to transform how, when and where student learning occurs; how the resources necessary to ensure learning need to be recruited, retained and sustained; how the PASSHE universities relate to their various communities; and how the State System partners with the Commonwealth in creating and delivering a shared vision of the future.

The performance funding program will measure how well the universities succeed in transforming teaching and learning, securing resources, engaging their communities and regions and providing leadership for the future.

The Pennsylvania State System of Higher Education is the largest provider of higher education in the Commonwealth, with nearly 120,000 students. The 14 PASSHE universities offer degree and certificate programs in more than 120 areas of study. Nearly 500,000 PASSHE alumni live and work in Pennsylvania.

The state-owned universities are Bloomsburg, California, Cheyney, Clarion, East Stroudsburg, Edinboro, Indiana, Kutztown, Lock Haven, Mansfield, Millersville, Shippensburg, Slippery Rock and West Chester Universities of Pennsylvania. PASSHE also operates branch campuses in Clearfield, Freeport, Oil City and Punxsutawney and several regional centers, including the Dixon University Center in Harrisburg.