Transforming The Pennsylvania State System of

Higher Education Through Performance Funding

Robert M. SmithSlippery Rock University

• Student Success– Degrees Awarded#

– Second Year Persistence #

– Graduation Rates* #

• Enrollment– Distance Education– Internships– New Pennsylvania

Community College Transfers

• Institutional Development– Accreditation– PRAXIS Aggregate Passing Rates*

• Fiscal Development– Faculty Productivity #

– Degree Programs with Few Graduates– Personnel Ratio– Private Support #

– Instructional Cost

• Diversity– Diversity of Entering Class– Enrollment Diversity– Employee Diversity #

– Faculty Terminal Degree #

Performance Measures 2001 - 2011

# Performance Funded Measures*Outcome Measures

Themes• Success of our students

Aligning with national and state agenda for higher education

• Access to opportunityAdding value for underserved populationsPreparing students to enter a global work force

• StewardshipTransforming physical, financial, and human

resources

Conceptual Overview for 2012-17 Plan

Program Principles

• Clear, understandable, replicable• Focus on results• Transparency and visibility of data• Universities may distinguish themselves• Reduce competition/foster collaboration• Align with System and University

strategic directions and policies• Align with national accountability efforts

Conceptual Overview for 2012-17 Plan

Conceptual Overview for 2012-17 Plan

Groups

I: Mandatory

II: Pick 3–5At least 1

Stewardship

III: University- specificUp to 2

Student Success

2

Choose 0–4

Access

2

Choose 0–4

Stewardship

1

Choose 1–4

Universities develop 0–2 indicators

Group I: Mandatory• Increase the Number of Degrees Conferred

Number of associate, baccalaureate, and graduate degrees conferred (.50)Baccalaureate degrees awarded per FTE undergraduate enrollment (.50)

• Closing the Achievement GapsClosing the Achievement Gap for Pell Recipients (.50)Closing the Achievement Gap for Underrepresented

Minority (URM) Students (.50)

Group II: Universities can select from the following• Deep Learning Scale Results—National Survey of Student Engagement

(NSSE)• Senior Survey—National Survey of Student Engagement (NSSE)• Student Persistence—Third and fourth years• Value-Added—Senior CLA, CAAP, or ETS® Proficiency Profile Scores• STEM Degree Recipients—Includes health degrees

Performance Indicators: Success

Group I: Mandatory• Closing the Access Gaps

Closing the Gap for Pell Recipients (.50)Closing the Gap for Underrepresented Minority (URM) Students (.50)

• Faculty DiversityPercent of full-time tenure/tenure-track faculty who are nonmajority

persons (.50)Percent of full-time tenured faculty who are female (.50)

Group II: Universities can select from the following• Faculty Career Advancement• Employment (Nonfaculty) Diversity• Student Experience with Diversity and Inclusion—Average of the

combined scores on applicable NSSE items• Student Diversity

Performance Indicators: Access

Performance Indicators: Stewardship

Group I: Mandatory• Private Support—Three-year average of total dollars

raised

Group II: Universities must select at least one from the following

• Facilities Investment—Composite measure of commitment to physical plant, as measured by the annual Sightlines’ Return on Physical Assets (ROPA) Study

• Administrative Expenditures as Percent of Cost of Education• Credit-Hour Productivity—Student credit hours as ratio of total FTE

faculty• Employee Productivity—FTE student/FTE employee (faculty and

staff)

Optional; no more than two • Developed and proposed by University• Derived from University’s strategic plan• Element of risk• External comparative base from national data source• Quantifiable results• Approved by Chancellor

Performance Indicators: University-Specific

• December 2002 Declared “the worst performing university in the State System.”

• 2011 Highest performing university in the State System (based on standards met).

The Slippery Rock University Story: 2002-2011

• Key steps to success:Conscript the entire university to

performance (embed in culture)Compel data driven decision-makingLeverage budget allocations around

performance resultsImplement internal incentives for

recurringImplement one-time funding for

outcome-based initiatives

The Slippery Rock University Story: 2002-2011

• Benefits of success:Revenue based on performance

(allowed us to shift to quality over quantity)Happy faculty and staff

(know how to “grow” resources and can make own strategic decisions)

Happy students(focused on quality of education and their success)

Astonished accreditors (assessment and outcome measures)

The Slippery Rock University Story: 2002-2011

finis