Florida College System Performance Based Funding Higher Education Coordinating Council June 20, 2016

Path to the 2015-16 Performance Funding Model Proviso Model Building the Model Adoption Improvement July 2014 May -January Spring July 23, August 2014 2015 2015 2015 2015 July 1, January 23, June 19, July 28, September 2014 2015 2015 2015 2015 Commissioner Recommended Model Gathering Law Passed Results Approval Meetings with college and legislative stakeholders occurred throughout the process.

2015-16 Performance Funding Model Four measures specified in proviso and statute Job Placement/Continuing Education Retention Rate Completion Rate Earnings Measures scored for excellence and improvement Excellence: compares college data to prior year(s) system average Improvement: compares college data to college’s own prior year(s) College: receives the score of highest value Threshold Gold: Base funds; new funds; portion of bronze new funds Silver: Base funds; new funds Bronze: Base funds restored based on Performance Improvement Plan progress MEASURES WEIGHTED: Completer Entry-Level Wages compared to college service area entry-level wages: 30% Completion Rate and Retention Rate: 100% Job Placement and/or Continuing Education: 75% Criteria: improvement plan in place and approved by SBOE Progress made Examine: Inclusion of Pell Grant Data as a multiplier in completion measure AA completers and wage measures Colleges’ mission to serve community needs for effect on wage measure Colleges’ improvement plan strategies for effect on measures in future years Other states to share data

Path to the 2016-17 Performance Funding Model March 11 April 14 Adopted by Legislature Rulemaking Workshop Signed into Law By the Governor SBOE Presentation Effective May 19 May 20 July 1 SBOE Approval July Winter 2015 Stakeholder Input Creates s. 1001.66, F.S., Florida College System Performance-Based Incentive, to: Establishe in law, rather than proviso or the implementing bill, the Performance-Based Incentive for the Florida College System.

Codified in Law: Section 1001.66, F.S. Awards a Performance-Based Incentive to Florida College System institutions using performance-based metrics adopted by the State Board of Education. Metrics must include: Retention Rates Completion Rates Entry-level Wages Job Placement/Continuing Ed (Outcome measures for AA degree recipients) Requires SBOE to: Adopt rules to administer the program Adopt Benchmarks for evaluation of institutions’ performance Establish minimum requirements to receive state investment funding Monitor colleges with performance improvement plans Florida College System Performance-Based Incentive Award a Florida College System Performance-Based Incentive to Florida College System institutions using performance-based metrics adopted by the State Board of Education (SBE). Require that the performance-based metrics must include: Retention rates. Program completion and graduation rates. Post-graduation employment, salaries, and continuing education for workforce education and baccalaureate programs, with wage thresholds that reflect the added value of the certificate or degree. Outcome measures appropriate for associate of arts degree recipients. Require the SBE to adopt benchmarks to evaluate each institution’s performance on the metrics and determine whether each institution has achieved excellence or needs improvement. Require the SBE to establish minimum requirements to receive performance funding. Require colleges identified as needing an improvement plan to be monitored and to submit reports by December 31 and May 31 each year. Beginning 2017-18, ability to submit improvement plan is limited to one fiscal year. State that the amount of funding from the state and the institution’s base funding will be according to General Appropriations Act. Require the SBE, by October 1, to report to Governor, Speaker and President on prior fiscal year allocations, which must reflect rankings and award distributions. Require the SBE to adopt rules to administer the program.

2016-17 Proposed Performance Funding Model Excellence Sub-Measure Now Criterion-Referenced Does Not Compare to Other Colleges ≥ 100% Above Service Area = Maximum Points Percent = Points Completers Who Received a Pell Grant Weighted 1.25 Incentive to Continue Serving Pell Students Retention Completion Job Placement and Continuing Ed Completer Wages 1.00 1.00 0.30 0.75

2016-17 Proposed Thresholds Purple Bronze Silver Gold Base Funding (Institutional Investment) Implement Plan for Restoration Auto-Restore Institutional Investment Auto-Restore Institutional Investment Potential Redistribution from Purple New Funding (State Investment) None Prorated Share of State Investment Redistribution from Bronze 2 standard deviations below mean threshold 1 standard deviation below mean threshold Within 1 standard deviation of Mean 1 standard deviation above mean threshold

Next Steps Develop a Rule to administer the law. Rule will include the following criteria for colleges below a number threshold: MEASURES Defining Cohorts Defining Subgroups CALCULATIONS Defining excellence and improvement Defining point ranges THRESHOLDS Methodology for establishing Communications IMPROVEMENT PLANS Content Measureable Formats