Indiana’s seven public universities are taking steps to boost graduation rates and increase degrees in such key areas as science and technology as part of a state push to link aid for higher education to performance.
The Indiana Commission for Higher Education has developed an evolving performance-based funding formula in an effort to increase the number of college graduates in the state.
The formula began in 2003 with incentives for universities that do research, the Indianapolis Business Journal reported. It expanded in 2007 with rewards for gains in degrees, on-time graduation rates and successful transfer students.
It now rewards schools for growth in number of overall degrees, on-time graduation rates, student retention, number of degrees in science, technology, engineering and math and those granted to students receiving federal Pell grants.
Though public universities continue to receive funding based on enrollment, performance-based funding is growing in importance.
The state budget that lawmakers are writing this year calls for raising the performance-based calculation from 5 percent of each school’s state funding to 6 percent in 2014 and 7 percent in 2015.