Postsecondary Education Working Group Recommendations
Application of Performance Funding Models Going Forward
At the December 2, 2020 meeting of the Postsecondary Education Working Group, members reached consensus on the following recommendations for the Governor and General Assembly:
A General Fund appropriation floor (“Floor 21”) should be established for each public postsecondary institution that equals each institution’s revised net General Fund appropriation1 for fiscal year 2020-21 (FY21) less appropriations for FY21 Mandated Programs.
The General Assembly is in no way constrained by the proposed General Fund floor for each institution in the event that a budget reduction is necessary.
Policymakers should prioritize maintaining each institution's General Fund floor over providing new funds for performance funding.
Mandated program appropriations should continue to be line-itemed in appropriations bills and are subject to increase or decrease.
Going forward, there should be no redistribution of base funding among postsecondary institutions, which means the institutions will not provide stop loss contributions to the Postsecondary Education Performance Fund (PEPF).
Therefore all funding in the PEPF will be appropriations provided by the General Assembly.
CPE will use the existing public university funding model, and KCTCS will use the existing two-year college model, with no changes, to distribute any new funding appropriated to the PEPF.
Performance distributions will be non-recurring to the base budgets of institutions that earn those funds, so that performance funds will be recurring to the PEPF in subsequent years.
CPE will reconvene the working group and submit recommendations for revisions to the models by no later than December 1, 2023.