PRINTER'S NO. 3154
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.
2619
Session of
2022
INTRODUCED BY TOPPER, MAY 24, 2022
REFERRED TO COMMITTEE ON EDUCATION, MAY 24, 2022
AN ACT
Amending the act of March 10, 1949 (P.L.30, No.14), entitled "An
act relating to the public school system, including certain
provisions applicable as well to private and parochial
schools; amending, revising, consolidating and changing the
laws relating thereto," providing for State-related
university performance-based funding incentive.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. The act of March 10, 1949 (P.L.30, No.14), known
as the Public School Code of 1949, is amended by adding an
article to read:
ARTICLE XX-L
STATE-RELATED UNIVERSITY
PERFORMANCE-BASED FUNDING INCENTIVE
Section 2001-L. Scope of article.
This article relates to the State-related University
Performance-Based Incentive awarded to State-related
universities.
Section 2002-L. Definitions.
The following words and phrases when used in this article
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shall have the meanings given to them in this section unless the
context clearly indicates otherwise:
"Advisory council." The Performance-based Funding Advisory
Council established under section 2003-L.
"Base State funding." The amount of funding appropriated to
each State-related university during the 2022-2023 fiscal year.
"Department." The Department of Education of the
Commonwealth.
"Institutional investment." A reallocated percentage, no
less than 3% nor more than 10%, of the aggregate base State
funding to the State-related universities as determined by the
advisory council.
"Net tuition." The amount a student pays for tuition after
financial aid as published tuition less all grant aid, including
Federal, State, local and institutional grants, and tax
benefits.
"Performance-based funding incentive." Consists of the
following:
(1) Institutional investment.
(2) New State funding, exceeding the base State funding,
appropriated by the General Assembly for this purpose.
"State-related university." The Pennsylvania State
University, including the Pennsylvania College of Technology,
the University of Pittsburgh and Temple University and
associated branch campuses.
"State wage interchange system." A system developed by the
United States Department of Labor and United States Department
of Education to facilitate the interstate exchange of wage data
between participating state agencies in order to satisfy
performance reporting requirements under the Workforce
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Innovation and Opportunities Act (Public Law 113-128, 128 Stat.
1425).
Section 2003-L. Performance-based Funding Advisory Council.
(a) Establishment.--The Performance-based Funding Advisory
Council is established within the department for the purpose of
allocating State funding to State-related universities based on
student outcomes.
(b) Membership.--The advisory council shall consist of the
following members:
(1) The Secretary of Education of the Commonwealth or a
designee.
(2) The Deputy Secretary of Postsecondary and Higher
Education or a designee.
(3) Two individuals appointed by the President pro
tempore of the Senate.
(4) An individual appointed by the Minority Leader of
the Senate.
(5) Two individuals appointed by the Speaker of the
House of Representatives.
(6) An individual appointed by the Minority Leader of
the House of Representatives.
(7) Two current Pennsylvania residents with recognized
subject matter expertise in higher education funding, who
must be appointed by the Governor.
(c) Chairperson.--The chairperson and vice chairperson of
the advisory council shall be selected by the members of the
advisory council.
(d) Term.--Members of the advisory council appointed
pursuant to this section shall serve terms as follows:
(1) A member appointed under subsection (b)(3), (4), (5)
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or (6) shall serve a three-year term.
(2) A member appointed under subsection (b)(7) shall
serve a four-year term.
(3) After the expiration of each initial term:
(i) A member appointed under subsection (b)(3), (4),
(5) or (6) shall be appointed for a term of four years.
(ii) A member appointed under subsection (b)(7)
shall be appointed for a term of five years.
(e) Quorum.--A majority of the members of the advisory
council shall constitute a quorum, and a quorum shall be
required for all actions.
(f) Vacancies.--A vacancy occurring on the advisory council
by resignation, removal, death or other reason shall be filled
within 30 business days of the vacancy in the manner in which
that position was originally filled. An individual appointed to
fill a vacancy shall be appointed for the unexpired term of the
member who created the vacancy.
(g) Reimbursement of expenses.--The members of the advisory
council may not receive compensation for their services but
shall be reimbursed by the department for all necessary travel
and other reasonable expenses incurred in connection with the
performance of their duties.
(h) Administrative support.--The department shall provide
administrative support, data, research, meeting space and other
assistance or information required by the advisory council to
carry out its duties under this article.
(i) Actions.--A vote of the majority of the members of the
advisory council shall be sufficient for all actions taken by
the advisory council.
(j) Meetings.--
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(1) The advisory council shall meet no less than four
times a year at the call of the chair.
(2) The advisory council shall hold its first meeting no
later than 90 business days after the effective date of this
section.
(3) All meetings shall be conducted in accordance with
the requirements of 65 Pa.C.S. Ch. 7 (relating to open
meetings).
Section 2004-L. Duties of the advisory council.
The advisory council shall:
(1) Adopt guidelines to administer the program.
(2) Adopt performance-based metrics and minimum
benchmarks pursuant to section 2006-L to evaluate each State-
related university's performance for eligibility to receive
performance-based funding from the Commonwealth.
(3) Monitor State-related universities with performance
improvement plans.
(4) Consult with the department and other Commonwealth
agencies and utilize experts to assist in carrying out the
duties of this article.
(5) Hold hearings and receive input from interested
parties, including State-related universities, parents and
students.
Section 2005-L. State-related university performance-based
funding incentive.
Beginning with the 2023-2024 fiscal year, the department
shall award a performance-based funding incentive, using
performance-based metrics adopted by the advisory council under
section 2006-L, to a State-related university.
Section 2006-L. Performance-based metrics.
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(a) General rule.--The advisory council shall adopt the
following performance-based metrics to evaluate a State-related
university's performance for eligibility to receive performance-
based funding from the Commonwealth:
(1) The four-year graduation rate for first-time-in-
college students.
(2) The percentage of undergraduate students enrolled
who received a Pell Grant during the previous school year.
(3) The six-year graduation rate for students who are
awarded a Pell Grant in their first year.
(4) The four-year graduation rate for baccalaureate
students.
(5) Student retention rates.
(6) Bachelor's degree production per 100 full-time
enrolled students.
(7) Net tuition and fees per 120 credit hours.
(8) Postgraduation employment rates and salaries,
including wage thresholds that reflect the added value of a
baccalaureate degree. The department shall provide wage data
from the State wage interchange system to the advisory
council.
(9) The number of students enrolled and the number of
degrees attained in the following fields:
(i) Agriculture.
(ii) Science.
(iii) Technology.
(iv) Engineering.
(v) Mathematics.
(10) The number of high school students who are dual
enrolled, and the number of credits earned.
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(11) The percentage of credits articulated.
(12) Other metrics provided by each State-related
university.
(b) Benchmarks to be adopted.--The advisory council shall
adopt benchmarks to evaluate a State-related university's
achievement of institutional excellence or need for improvement
and minimum requirements for eligibility to receive a
performance-based funding incentive.
(c) Periodic review.--The advisory council shall review, and
revise if necessary, the performance-based funding metrics and
benchmarks at least every five years. Within 60 days of the
completion of the review, the advisory council shall issue a
report to the Governor, the department and the General Assembly,
post the report on the department's publicly accessible Internet
website and transmit notice of the updates to the Legislative
Reference Bureau for publication in the Pennsylvania Bulletin.
(d) Adjustment prohibited.--After they are published in the
Pennsylvania Bulletin, metrics and benchmarks may not be
adjusted for the next fiscal year.
Section 2007-L. Allocation of funding.
(a) General rule.--Beginning with the 2023-2024 fiscal year,
the amount of funds available for allocation to the State-
related universities based on the performance-based funding
provisions of this article shall consist of the State's
investment in performance funding plus institutional
investments, represented by money to be redistributed from the
base State funding.
(b) Minimum eligibility thresholds and benchmarks.--
(1) The advisory council shall establish minimum
performance funding eligibility thresholds or benchmarks for
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the State's investment and the institutional investments.
(2) A State-related university that meets the minimum
institutional threshold, but fails to meet the minimum State
investment eligibility threshold, shall have its
institutional investment restored but is ineligible for a
share of the State's investment in performance funding.
(3) The institutional investment shall be restored for
all State-related universities eligible for the State's
investment under the performance-based funding model.
(c) Determination of share.--A State-related university's
share of the performance funding shall be calculated based on
the university's relative performance on the established metrics
in conjunction with the institutional size and scope.
(d) Annual distribution.--The department shall annually
distribute performance-based funding, as provided in this
article, to each of the approved State-related universities.
(e) Report.--By December 31 of each year money is
appropriated for a performance-based funding incentive, the
advisory council shall submit a report containing the rankings
and award distributions to the Governor, the department and the
General Assembly. A copy of the report shall be posted on the
department's publicly accessible Internet website.
Section 2008-L. Improvement plans.
(a) Withholding of institutional investment.--The department
shall withhold a portion of a State-related university's
institutional investment withheld if the university fails to
meet the minimum institutional investment performance funding
eligibility threshold or benchmark. The State-related university
shall submit an improvement plan to the advisory council that
specifies the activities and strategies for improving the
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university's performance.
(b) Review of improvement plan.--The advisory council shall
review the improvement plan and, if the plan is approved,
monitor the university's progress in implementing the activities
and strategies specified in the improvement plan.
(c) Monitoring reports.--The State-related university shall
submit monitoring reports to the advisory board by December 31
and May 31 of each year in which an improvement plan is in
place. The ability of the university to submit an improvement
plan to the advisory board is limited to one fiscal year.
(d) Period of withheld institutional investment.--
(1) The department shall withhold disbursement of the
institutional investment until the monitoring report is
approved by the advisory council.
(2) A State-related university determined by the
advisory council to be making satisfactory progress on
implementing the improvement plan shall receive no more than
one-half of the withheld institutional investment in January
and the balance of the withheld institutional investment in
June.
(3) A State-related university that fails to make
satisfactory progress may not have the university's full
institutional investment restored. Institutional investment
funds that are not restored shall be redistributed in
accordance with the advisory council's performance-based
metrics.
Section 2. This act shall take effect in 60 days.
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