Lawmakers and educators discuss the impact of performance funding on state universities

The Performance-Based Funding Council, formed last summer, is working on a new funding formula. This group includes lawmakers and education officials from schools like Penn State and the University of Pittsburgh. They aim to have recommendations ready by the end of April.
Right now, these universities get over $550 million from the state each year. Both parties in the legislature and Governor Josh Shapiro support the idea of performance-based funding. Rep. Jesse Topper, the council chair, believes this is a chance to rethink how public money is spent on education.
Many states already use performance-based funding, focusing on metrics like graduation rates and student retention. However, experts warn that creating a fair formula can be tricky. Some schools might struggle to improve their performance without initial funding.
One suggestion is to reward schools for their progress over time rather than using a one-size-fits-all benchmark. But there are concerns that this approach could widen the gap between students from different backgrounds.
Despite the challenges, some experts see benefits in performance funding. It could lead to more accountability and help schools manage their budgets better. Currently, funding requires a two-thirds vote, which can cause delays. A new formula could simplify this process.
Lawmakers could also use performance metrics to boost graduation rates for underrepresented groups and encourage students to pursue in-demand careers. The council plans to hold more hearings, including some at the universities involved, with recommendations due by April 30.