Act 359 of 1996, an initiative commonly known as 'Performance Funding,'amended Section 59-103-10, et seq., of the Code of Laws of South Carolina, 1976, asamended, and established a new direction for the accountability and funding of highereducation in South Carolina.
Act 359 requires that public institutions of higher education in South Carolina befunded based on their performance in achieving standards in nine areas, known as'critical success factors.' The legislation requires that 37 performanceindicators be used to determine an institutions performance in achieving thecritical success factors (§59-103-30, SC Code of Laws, 1976, as amended). Asdirected by the legislation (§59-103-45, SC Code of Laws, 1976, as amended), theSouth Carolina Commission on Higher Education has developed measures and a funding formulain cooperation with South Carolina public higher education institutions and otherstakeholders in South Carolinas higher education system. Performance funding was tobe phased in over a three-year period, with appropriations being allocated entirely onperformance during FY 1998-99 for expenditure in FY 1999-2000. Currently, the Commissionis in its third year of implementing Act 359. This past year brought changes to theperformance funding system, as initially developed, after considerable review by theCommission of the present system and its strengths and weaknesses. Along with systemchanges, several of the measures developed for the 37 performance indicators were alsoaltered. The workbook for performance funding has been reformatted and updated to reflectchanges to the performance funding system and replaces in its entirety the PerformanceFunding Workbook dated March 5, 1998. The workbook is provided as a guide to be usedby institutions in the benchmarking and rating process, and should prove useful to othersinterested in the performance funding system in South Carolina.
On the following pages, the performance funding system is outlined and the generalprocess for measuring institutions performance during the upcoming Performance Year1999-2000, which will impact institutions' Fiscal Year 2000-2001 funding, is described. Asection outlining detailed information related to each of the 37 performance indicators isprovided, following general information related to performance funding and the system usedto assess institutions overall performance. In Sections III, IV, V, VI, and VII, thereader will find summary tables related to the measures and the collection of data, formsand instructions for setting benchmarks and submitting rating data, and a tentativeperformance funding calendar and other relevant information for the upcoming year.
As the process of implementing performance funding continues, the Commission willprovide additional information regarding its implementation. The reader is referred to theCommissions webpage at www.che.sc.gov for the most up-to-date information on performance funding in South Carolina.