Higher Education Funding Allocation Model Changes

     The bill changes the higher education funding provisions, effective for the 2027-28 state fiscal year.

     Under current law, a state institution of higher education's governing board's annual fee-for-service contract includes funding calculated based on 3 components: Ongoing additional funding, performance funding, and temporary additional funding. The bill:

• Changes the name of the funding from 'performance funding' to 'results-informed funding';
• Redefines some of the terms and metrics that are used to determine results-informed funding; and
• Reorders the components and eliminates current statutory language that requires sequential calculation of the components.
  
  (Note: This summary applies to the reengrossed version of this bill as introduced in the second house.)