Performance Funding
Tennessee was the first state in the nation to implement and maintain a successful incentive based funding program. Since 1979, the Tennessee Higher Education Commission (THEC) has coordinated the performance funding program for public higher education that financially rewards exemplary institutional performance on selected measures of effectiveness. Through performance funding, public colleges and universities can receive up to 5.45 percent over and above their annual formula generated appropriations based upon exemplary performance levels achieved on selected assessment areas. Since its inception, close to $500 million dollars has been earned by colleges and universities.
The program is administered on five-year cycles; the current cycle covers 2005-10. The assessment, criteria, and scoring protocols of the current performance funding cycle were developed with the active participation of the governing boards as well as statewide college and university participation. Approximately 60 percent of the performance funding indicators are devoted to student performance and satisfaction. The remaining 40 percent focus on academic program and institutional indicators.
Through the performance funding program, THEC continues to promote its traditional principles of equity, excellence, accessibility, and accountability.
Performance Funding Links
Performance Funding Indicators
- Accreditation
- Assessment Implementation
- General Education
- Institutional and State Planning Priorities
- Job Placement
- Major Field Assessment
- Program Review
- Retention and Persistence Goals
- Satisfaction Surveys
