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State funding debate: Presidents urge mix of performance dollars and base increases
Summary
University leaders told the House Appropriations Committee that the governor’s proposed $60 million in performance-based funding should be paired with institution-specific increases to cover deep base-appropriation shortfalls and hold in‑state tuition steady.
Pennsylvania university leaders told the House Appropriations Committee on Feb. 20 that the governor’s proposed $60 million in performance-based funding should be paired with additional base appropriations to address long-standing funding gaps and keep in‑state tuition affordable.
The presidents who testified — Neeli Bendapudi, president of Pennsylvania State University; Joan Gabel, chancellor of the University of Pittsburgh; Brenda A. Allen, president of Lincoln University; and the Temple University president (unnamed in the transcript) — said performance metrics can align incentives but cannot replace base funding needed to maintain operations and programs.
“Performance based funding increases transparency. It increases accountability,” Neeli Bendapudi told Representative Cutts. Bendapudi also said Penn State needs both the proposed new performance dollars and a separate supplemental increase, citing an estimate from a February 2025 joint state report that Penn State’s base appropriation is roughly $156 million below peer levels.
Temple’s president said the institution seeks both performance dollars and additional operating support and tied state investment to affordability and student access. “Our request … helps us offset the cost of attendance for in‑state students,” a university president said during questioning about tuition freezes.
When asked directly whether a university would freeze in‑state undergraduate tuition if it received both performance funding and the supplemental increases, one president answered, “We will commit, if we get both, to keeping Pennsylvania undergraduate students’ tuition freezing.” Other presidents said the proposed performance line was not explicitly described as the mechanism to hold tuition flat but said combined resources would help limit tuition pressure.
Representatives framed the budget question as two parts: (1) the governor’s performance-based line of $60 million to be allocated using a formula, and (2) institution-specific supplemental requests submitted by each university. Committee members pressed university leaders for clarity on what metrics should be included in the performance formula; witnesses generally recommended a short set of measures reflecting student demographics (accounting for mission and student mix), throughput (retention and graduation), and post‑graduation outcomes.
Presidents and committee members also discussed timing and next steps for the performance-based funding commission. Witnesses expressed support for the commission’s work and said they expected its recommendations to arrive in time to be considered during the budget process.
Why it matters: Lawmakers framed the performance fund as a lever to drive public priorities — workforce alignment, degree completion, and equitable access — while university leaders emphasized that restoring per‑student base funding is necessary to maintain capacity and statewide services.
What’s next: The performance-based funding commission is preparing a formula for the General Assembly; university leaders asked that any new model account for mission differences and the demographic mix of students served.
