217Agency Name: Commission on Higher Education 62
Proposed Date: 19970124
Effective Date: 19980522
Expiration Date: 19980415
Regulation Number: 2173
Final Issue: 5
Final Volume: 22
Proposed Issue: 1
Proposed Volume: 21
Committee Involved: Education Committee 04 SED
Ways and Means Committee 30 HWM
Statutory Authority: 59-103-45(4)(a)-(d)
Subject: Performance Funding
History of Regulation Document 2173
BY DATE ACTION DESCRIPTION COM ISS/VOL EXP DATE R. NUM __ _____________________________________ _______ ________ __________ ________ - 19970110 Proposed RegPublished in SR 1/21 - 19970422 Received by Lt.Gov. & Speaker 19970820 H 19970423Referred to Committee HWM 30 S 19970423 Referred to Committee SED 04 - 19970617 RevisedReview Period Exp Dat 19980317 S 19980121 Committee Request Withdrawal, SED04 120 Dayperiod tolled - 19980219 Withdrawn and Resubmitted 19980415 - 19980415 Approved by:Expiration Date 5/22
Document No. 2173
COMMISSION ON HIGHER EDUCATION
Statutory Authority: 1976 Code Section 59-103-45 (4)(a)-(d)
The South Carolina Commission on Higher Education proposes to set standards fordetermining how well an institution has met or achieved the performance indicators forquality academic success as enumerated in Section 59-103-30, and develop the mechanismsfor measuring the standards of achievement of particular institutions.
New regulations to be added to Chapter 62 (700 - 750). Submitted originally on April16, 1997. Withdrawn and resubmitted at the request of the Senate Education Committee onFebruary 19, 1998.
Pursuant to the authority granted to the Commission on Higher Education by Section59-103-45 (4)(b), regulations for the development of benchmarks for performance in highereducation and a funding mechanism based on an institution's achievement towards thosebenchmarks are hereby established.
As used in this section:
(1) Educational and General Costs: Expenditures associated with the followingactivities: Instruction, Research, Public Service, Academic Support, Student Services,Institutional Support, Operation and Maintenance of Plant, and Scholarships andFellowships. Expenditures not included are those associated with Auxiliary Enterprises,Hospitals and Independent Operations.
(2) Indicators: The indicators found in Section 59-103-30 (B) as approved by theGeneral Assembly to assess the success of a public postsecondary institution in meetingthe nine critical areas identified by the General Assembly.
(3) Institutional Benchmark: Annual goal which an individual institution strives tomeet or exceed.
(4) MeasuResolution Number: Specific representation of an indicator using quantitativeor qualitative characteristics.
(5) Mission Resource Requirement (MRR) model: Mechanism to determine funding needs.
(6) National Data: Data derived from the Integrated Postsecondary Education Data System( IPEDs) data system.
(7) Performance Funding System: a budgeting system which provides for an annualevaluation of an institution's performance based on previously established standards.
(8) Performance Rating: Score based on the analysis of performance on a particularindicator.
(9) Performance Score: Sum of the individual ratings.
(10) Regional Data: Data derived from the Southern Regional Education Board (SREB) datasystem.
(11) Sector: As defined in Section 59-103-10 (2), South Carolina's public postsecondaryinstitutions are divided into four groupings based on the primary mission of theinstitution. These include: 1) research universities, 2) four-year colleges anduniversities, 3) two-year institutions - branches of the University of South Carolina, and4) the State Technical and Comprehensive Education System.
(12) Sector Benchmark: Goal(s) which institutions in a particular sector strive to movetoward, meet or exceed over a period of years.
A. Performance Funding shall be phased-in over a three year period beginning withFiscal Year 1997-98.
B. The implementation schedule is as follows:
(1) Twenty-two (22) indicators for 1998-99;
(2) Full implementation of performance funding shall begin in FY 1999-2000
62-730 Performance Indicators
A. The Commission on Higher Education shall measure each institution's performancethrough the use of the performance indicators as enumerated in Section 59-103-30 (B).
(1) Analysis of a specific indicator will result in a performance rating for eachindicator. The rating scale includes the following: 1 - non-compliance, 2 - needsimprovement, 3 - satisfactory progress, 4 - meets institutional benchmark, and 5 - exceedsinstitutional benchmark; at the Commission on Higher Education's discretion, a score of 6may be awarded for exemplary performance if an institution substantially exceedsinstitutional and, if applicable, sector benchmarks and represents extraordinary effort,or a 0 for non-compliance after a probationary period.
(2) The sum of the ratings will result in a performance score for each institution. Theinstitution's share of its mission resource needs as defined by the Mission ResourceRequirements (MRR) model will be proportional to its performance score.
(3) The Commission on Higher Education shall ensure that funds up to $5,000,000 peryear are set aside to assist institutions in improving their performance on one or moreindicators where the performance score indicates that substantial imp rovements areneeded.
B. The Commission on Higher Education will evaluate each institution's rating comparingthe institution's actual performance to its institutional benchmark and sector benchmarkpreviously approved by the Commission on Higher Education.
C. Effective in 1998, Institutional Benchmarks and Sector Benchmarks will be approvedby the Commission on Higher Education prior to the beginning of the fiscal year duringwhich the performance will be evaluated.
D. An institution's performance will be displayed showing the data for each indicatorincluding the average performance of institutions in the sector, the sector benchmark, theinstitution's previous year's performance, the institution's approved benchmark, theinstitution's actual performance, and the Commission on Higher Education's rating of thatperformance. A performance score for the institution across all indicators will also bedisplayed.
E. The indicators and their respective measures shall be applied individually to thepublic institutions.
F. The Commission on Higher Education shall approve the Performance Rating for eachinstitution in order to insure that the allocation to each institution can be made knownwithin 10 days of adoption of the Appropriation's Bill by the General Assembly.
G. The Commission on Higher Education shall review annually the measures to be used toevaluate the indicators and make modifications as appropriate. This will occur immediatelyprior to the beginning of the fiscal year for which the performance will be evaluated.
H. The data used to evaluate the institutional performance on a specific indicatorshall come from the Commission on Higher Education Management Information System (CHEMIS)and other data received by the Commission on Higher Education.
(1) All data utilized, regardless of source, is subject to approval and audit by theCommission on Higher Education.
62-740 Development of Measures and Benchmarks
A. The Commission on Higher Education shall develop measures and benchmarks ofperformance for the indicators that will guide the institutions in the State towardnationally and globally competitive performance.
B. Until fully implemented, the Commission on Higher Education shall submit anyrevisions to the measures for adoption as part of the General Appropriations Act.
62-750 Development of Performance Funding Allocation Plan
A. As required by Section 59-103-45(4)(d), the Commission on Higher Education shalldevelop a mechanism to determine the funding needs of the State's postsecondary educationinstitutions. This methodology is referred to as the Mission Resource Requirement (MRR)model.
(1) The Mission Resource Requirement model is based on national and regional datasources. National data includes the IPEDS data system and regional data includes the SREBdata collection system.
62-760 Review and Reporting to the General Assembly
A. Indicator shall be reviewed, at a minimum, every three years, in order to identifythose measures and benchmarks which need to be adjusted to fulfill the mission of highereducation in the State, as defined by Section 59-103-15(A).
B. The Commission on Higher Education shall approve the processes for revision ensuringinput from those groups listed in Section 59-103-45(4)(a).
C. The Commission on Higher Education shall submit to the General Assembly prior to thebeginning of the legislative session, a report on the status of performance funding. Thisreport shall include:
(1) a five year plan to improve performance for higher education in the State, updatedannually;
(2) a record of institutional performance on the indicators during the previous year;and
(3) revisions and modifications to the measures and benchmarks to ensure continuousprogress toward high performance.
Fiscal Impact Statement:
The Commission on Higher Education has determined that implementing these regulationswill cost $440,000 in additional staff time and other costs for FY 1998-1999 and theensuing years. The fiscal impact on the higher education institutions in the State will beapproximately $3,000,000 to $5,000,000 annually due to increased staff time for datacollection and reporting.
The S.C. General Assembly HOMEPAGE
Last Updated: May 12, 1998 at 12:47 pm