The Illinois Board of Higher Education says its developed a smarter way to allocate state funds to colleges and universities. Illinois is now one of the states using “performance-based” higher ed funding. It dictates how to allocate money to state schools based on a set of metrics … like how many students actually graduate versus how many are enrolled … and the ethnic diversity of students.
Director George Reid who heads the state’s Board of Higher Education says it’s a promising development. He says the decision to make the switch was collaborative:
REID “Almost every stakeholder who is concerned or was concerned about higher education and how we were doing…the faculty, administrators, people in business and industry all lined up together to say ‘This is what we should do, and this is how we should do it.'”
The plan is being phased in, though so far it hardly affects schools. Less than one percent of college funding was reallocated based on their performance. But the agency says the switch has gotten the attention of universities.
All public universities are facing about a 6 percent cut in funding from the state for the coming fiscal year.