Directs Secretary of Higher Education to establish performance-based funding plans for public institutions of higher education.
Impact
This legislation establishes a systematic approach to state funding by tying a portion of state operating aid to institutional performance. This would gradually implement a performance-based model starting from fiscal year 2019, wherein 5% of state funding would be contingent upon performance metrics, increasing annually up to 25% by fiscal year 2023. By doing so, it introduces a proactive measure to ensure that state resources are directed to institutions that demonstrate a commitment to improving student progress and graduation rates. A provision ensuring that no institution faces more than a 2% reduction in state funding compared to the previous fiscal year offers some security during the transition to this new funding model.
Summary
Assembly Bill A376 directs the Secretary of Higher Education in New Jersey to develop performance-based funding plans for public institutions of higher education. The primary objective of these plans is to enhance accountability, increase efficiency, and improve student outcomes across these institutions. The Secretary is tasked with creating distinct funding strategies for both county colleges and four-year public institutions and may consider a separate plan for public research institutions if deemed necessary. The bill emphasizes collaboration with various stakeholders, including institutional governing boards, business representatives, and faculty organizations, to ensure that funding allocation is based on clearly established performance metrics.
Contention
The bill outlines specific performance measures for assessing institutional effectiveness, such as credit completion rates, job placement statistics, and progress in reducing achievement gaps among diverse student groups. However, the implementation of performance-based funding may evoke concerns regarding its potential to disadvantage institutions serving higher populations of low-income or minority students, who may face additional barriers to completion. Critics argue that an over-reliance on standardized performance metrics might overlook the unique challenges that vary across different institutions, particularly among county colleges and community colleges that are focused on providing accessible education.
Establishes scholarship program for students at public institutions of higher education pursuing certain community service-oriented opportunities; requires Secretary of Higher Education to establish grant program; appropriates $10 million.
Directs Secretary of Higher Education to appoint special auditor to investigate claims of abuse of public funds at public institutions of higher education.
Establishes process for merger or consolidation of public institution of higher education with other institutions of higher education or certain proprietary institutions; requires executive and legislative approval of merger or consolidation.
Requires Secretary of Higher Education and public institutions of higher education to develop programs for improving Hispanic and Latino representation in higher education leadership positions.
Requires public institutions of higher education to provide menstrual products in all campus buildings; appropriates $85,000 from General Fund to Office of Secretary of Higher Education.
Reforms the organizational structure for the Department of Transportation and Development including its duties, powers, and responsibilities of officers and employees (EN INCREASE SD EX See Note)
A bill for an act providing for certain business entities acting under the jurisdiction of the secretary of state by providing for the removal of information from a filing based on a sworn affidavit and administrative dissolution based on the response to interrogatories.(See HF 2678.)