PRIOR PRINTER'S NO. 1559
PRINTER'S NO. 1713
THE GENERAL ASSEMBLY OF PENNSYLVANIA
SENATE BILL
No.
1154
Session of
2024
INTRODUCED BY AUMENT, MARTIN, PITTMAN, ARGALL, PENNYCUICK,
LANGERHOLC, LAUGHLIN, MASTRIANO, REGAN, STEFANO, VOGEL AND
J. WARD, APRIL 26, 2024
AS AMENDED ON THIRD CONSIDERATION, JUNE 10, 2024
AN ACT
Establishing the Performance-based Funding Council and providing
for its powers and duties.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Short title.
This act shall be known and may be cited as the Performance-
based Funding Council Act.
Section 2. Definitions.
The following words and phrases when used in this act shall
have the meanings given to them in this section unless the
context clearly indicates otherwise:
"Council." The Performance-based Funding Council established
by this act.
"Department." The Department of Education of the
Commonwealth.
"State-related university." The following institutions:
(1) The Pennsylvania State University.
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(2) The University of Pittsburgh.
(3) Temple University.
Section 3. Performance-based Funding Council.
(a) Establishment.--The Performance-based Funding Council is
established for the purpose of the development of a new system
to distribute funding to the State-related universities. The
system shall utilize performance-based metrics designed to
increase degree attainment, encourage affordability in higher
education, meet workforce needs and grow the economy.
(b) Membership.--
(1) The council shall consist of voting members
appointed under paragraph (2) and nonvoting members, who
shall serve in an advisory role, described under paragraph
(3).
(2) The voting members of the council shall be:
(i) An individual appointed by the Governor.
(ii) An individual appointed by the President pro
tempore of the Senate.
(iii) An individual appointed by the Minority Leader
of the Senate.
(iv) An individual appointed by the Speaker of the
House of Representatives.
(v) An individual appointed by the Minority Leader
of the House of Representatives.
(3) The nonvoting members of the council shall be:
(i) The President of The Pennsylvania State
University or a designee.
(ii) The President of the University of Pittsburgh
or a designee.
(iii) The President of Temple University or a
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designee.
(4) An individual appointed under paragraph (2) may not
be employed by or serve on the governing body of a State-
related university or other university or college in this
Commonwealth.
(c) Chairperson.--The voting members of the council shall
appoint a member to serve as the chairperson.
(d) Council meetings.--The meetings of the council shall be
held bimonthly and at the call of the chairperson as necessary
and shall be conducted in accordance with the requirements of 65
Pa.C.S. Ch. 7 (relating to open meetings).
(e) Quorum.--A majority of the voting members of the council
shall constitute a quorum, and a quorum shall be required to
vote on actions to be taken by the council.
(f) Council actions.--A two-thirds vote of the voting
members of the council shall be required for all actions taken
by the council.
(g) Administrative and technical support.--
(1) The General Assembly shall provide administrative
support, meeting space and any other assistance required by
the council to carry out the council's powers and duties
under this section.
(2) The department, the Pennsylvania Higher Education
Assistance Agency and the State-related universities shall
provide technical support, including data, research and other
assistance required by the council, to carry out the
council's powers and duties under this section.
(h) Powers and duties.--The council shall:
(1) Consult with Commonwealth agencies and experts to
assist in carrying out the duties of this section.
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(2) Hold public hearings at each one of the State-
related universities and receive input from experts and
interested parties, including parents and students.
(3) No later than March 31, 2025, develop
recommendations for a new system to distribute funding to the
State-related universities that utilizes performance-based
metrics and requires the reallocation of between 3% and 5% of
the amount appropriated in fiscal year 2023-2024 in each
subsequent fiscal year. SYSTEM THAT UTILIZES PERFORMANCE-
BASED METRICS TO DISTRIBUTE:
(I) THE REALLOCATION OF BETWEEN 3% AND 5% OF THE
AMOUNT APPROPRIATED IN FISCAL YEAR 2023-2024; AND
(II) ANY FUNDING IN SUBSEQUENT YEARS THAT IS MORE
THAN THE AMOUNT APPROPRIATED TO THE STATE-RELATED
UNIVERSITIES IN FISCAL YEAR 2023-2024.
(4) No later than April 30, 2025, transmit the
recommendations to the Governor, the department and the
General Assembly, including draft legislation to implement
the new system to distribute funding.
(i) Performance-based funding metrics.--The council shall
consider the following metrics CHOOSE NO MORE THAN SIX METRICS
FROM THE FOLLOWING LIST when developing the new system under
subsection (h):
(1) A base level of funding to ensure ongoing
operations.
(2) Incentive funding.
(3) Performance thresholds.
(4) The four-year graduation rate for first-time college
students.
(5) The percentage of undergraduate students enrolled
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who received a Pell Grant during the previous school year.
(6) The six-year graduation rate for students who are
awarded a Pell Grant in their first year.
(7) The four-year graduation rate for baccalaureate
students.
(8) Student retention rates.
(9) Bachelor's degree production per 100 full-time
enrolled students.
(10) Net tuition and fees per 120 credit hours.
(11) Postgraduation employment rates and salaries,
including wage thresholds that reflect the added value of a
baccalaureate degree.
(12) The number of students enrolled and the THE number
of degrees attained in high-priority occupations in this
Commonwealth.
(13) The number of nontraditional students enrolled in a
program to up-skill or reskill in high-priority occupations
in this Commonwealth.
(14) The number of high school students who are dual
enrolled and the number of credits earned.
(15) The percentage of credits articulated.
(16) Other metrics provided by each State-related
university.
(17) Other metrics related to higher education that the
council deems appropriate.
(j) Withholding of payments.--If the council fails to
transmit its recommendations to the department as required under
subsection (h)(4), the department shall withhold the payment of
money appropriated to each State-related university until such
time that the council transmits the recommendations to the
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department as required under subsection (h).
Section 4. Effective date.
(J) DEFAULT METRICS.--
(1) IF THE COUNCIL FAILS TO TRANSMIT RECOMMENDATIONS TO
THE DEPARTMENT AS REQUIRED UNDER SUBSECTION (H)(4), THE
PENNSYLVANIA HIGHER EDUCATION ASSISTANCE AGENCY, IN
CONSULTATION WITH THE DEPARTMENT, THE DEPARTMENT OF LABOR AND
INDUSTRY, THE INDEPENDENT FISCAL OFFICE AND THE STATE-RELATED
UNIVERSITIES, SHALL:
(I) DEVELOP, IN ACCORDANCE WITH PARAGRAPH (2), A NEW
SYSTEM THAT UTILIZES DEFAULT METRICS TO DISTRIBUTE
FUNDING TO THE STATE-RELATED UNIVERSITIES.
(II) DEVELOP DRAFT LEGISLATION TO IMPLEMENT THE
SYSTEM DEVELOPED UNDER SUBPARAGRAPH (I).
(III) TRANSMIT THE NEW SYSTEM DEVELOPED UNDER
SUBPARAGRAPH (I) AND THE DRAFT LEGISLATION DEVELOPED
UNDER SUBPARAGRAPH (II) TO THE FOLLOWING NO LATER THAN
JUNE 13, 2025:
(A) THE GOVERNOR.
(B) THE DEPARTMENT.
(C) THE GENERAL ASSEMBLY.
(2) THE DEFAULT METRICS UTILIZED UNDER PARAGRAPH (1)(I)
SHALL:
(I) CONSIST OF THE FOLLOWING, WHICH SHALL BE
WEIGHTED EQUALLY:
(A) THE FOUR-YEAR GRADUATION RATE FOR FIRST-TIME
COLLEGE STUDENTS.
(B) THE SIX-YEAR GRADUATION RATE FOR STUDENTS
WHO ARE AWARDED A PELL GRANT IN THEIR FIRST YEAR.
(C) NET TUITION AND FEES PER 120 CREDIT HOURS.
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(D) STUDENT RETENTION RATES.
(E) THE NUMBER OF DEGREES ATTAINED IN HIGH-
PRIORITY OCCUPATIONS IN THIS COMMONWEALTH.
(II) BE USED TO DISTRIBUTE THE FOLLOWING:
(A) THE REALLOCATION OF 5% OF THE AMOUNT
APPROPRIATED IN FISCAL YEAR 2023-2024.
(B) ANY FUNDING IN SUBSEQUENT YEARS THAT IS MORE
THAN THE AMOUNT APPROPRIATED TO THE STATE-RELATED
UNIVERSITIES IN FISCAL YEAR 2023-2024.
(III) BE IN EFFECT UNTIL SUCH TIME THAT THE COUNCIL
TRANSMITS RECOMMENDATIONS TO THE DEPARTMENT AS REQUIRED
UNDER SUBSECTION (H)(4).
(3) THE FOLLOWING SHALL APPLY TO ADMINISTRATIVE COSTS OF
THE PENNSYLVANIA HIGHER EDUCATION ASSISTANCE AGENCY:
(I) OF THE MONEY APPROPRIATED TO STATE-RELATED
UNIVERSITIES FOR ANY FISCAL YEAR, UP TO $500,000 SHALL BE
ALLOCATED TO THE PENNSYLVANIA HIGHER EDUCATION ASSISTANCE
AGENCY TO PAY ADMINISTRATIVE COSTS ASSOCIATED WITH THE
AGENCY'S WORK UNDER PARAGRAPH (1).
(II) FOR AN ALLOCATION UNDER SUBPARAGRAPH (I), THE
FOLLOWING SHALL APPLY:
(A) EACH STATE-RELATED UNIVERSITY SHALL
CONTRIBUTE AN EQUAL SHARE OF THE AMOUNT ALLOCATED.
(B) THE MONEY CONTRIBUTED UNDER CLAUSE (A) SHALL
BE PAID OUT OF THE AMOUNT APPROPRIATED TO EACH STATE-
RELATED UNIVERSITY FOR THE FISCAL YEAR IN WHICH THE
MONEY IS ALLOCATED.
SECTION 4. REVIEW.
THE COUNCIL SHALL RECONVENE EVERY FIVE YEARS TO REEVALUATE
THE PERFORMANCE METRICS UTILIZED FOR THE DISTRIBUTION OF FUNDS
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TO STATE-RELATED UNIVERSITIES.
SECTION 5. EFFECTIVE DATE.
This act shall take effect July 1, 2024, or immediately,
whichever is later.
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