Gov. Asa Hutchinson announces 21st Century Funding Formula for State's Higher Education Institutions

Press Release

Today Governor Asa Hutchinson announced support of a plan to fundamentally change the funding formula for the state's higher education institutions. The proposed Higher Education Productivity Funding Model follows an outcomes-based approach, which will place a higher priority on program completion than the previous formula. The Arkansas Department of Higher Education Coordinating Board approved the proposal in a unanimous vote Friday morning. The proposal will now go before the legislature during the 2017 general session. If the measure is adopted, Arkansas will become only the fifth state to make significant progress toward funding higher education based on outcomes -- joining Tennessee, Indiana, Ohio, and Oregon.

Governor Hutchinson issued the following statement:

"I am pleased to announce my support of the productivity funding model for Arkansas's higher education institutions. At my direction, the Arkansas Department of Higher Education began to look at potential changes to our current funding formula that would emphasize accountability, student success, and degree completion. These changes will promote efficiency of operations, encourage on-time completion, and encourage allocation of resources to areas which directly impact student success, such as faculty salaries and academic support services.

"My priority continues to be increasing the percentage of Arkansans that are career-ready, equipped with degrees and industry-recognized certificates, and this new revolutionary funding model will help us achieve just that."

Source