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Tennessee higher-education master plan presented; THEC signals possible shift to 4-year completion metric
Summary
THEC presented a 10-year higher-education master plan to the House Education Committee and outlined a statutory review of the outcomes-based funding formula, including a proposal to place greater weight on four-year graduation and to update the workforce investment premium.
The Tennessee Higher Education Commission told the House Education Committee on Friday that its newly approved 2025–2035 master plan will steer postsecondary programs and capital approvals and that a concurrent review of the state’s outcomes-based funding formula could change how state dollars follow student success.
"This master plan is for them," THEC Executive Director Steven Gentile said, pointing to students and adult learners the plan aims to serve, and framing the document around the cornerstones of alignment, achievability and agility.
THEC cited gains in recent years — higher on-time completion and broad financial-aid programs such as Tennessee Promise and Tennessee Reconnect — while urging further reforms. The commission said the plan is a statutory requirement intended to align campus programs, new academic offerings and capital projects with statewide workforce needs.
Russell Van Zamoren, THEC senior director of fiscal policy, outlined the outcomes-based funding formula's origins in the Complete College Tennessee Act and said the commission and its statutory review committee are considering several changes. "We think it's due time that we adjust the formula to recognize 4 year graduation instead of 6 year graduation," Van Zamoren said, describing an effort to focus more tightly on on-time completion. He also said the list of degrees eligible for the workforce investment premium (currently concentrated on STEM and health-care awards) will be evaluated to better match workforce demand.
THEC presented evidence used to justify the emphasis on timely credentials: Gentile cited an increase in credential attainment over the past decade but noted the state is at about 49% credential attainment now and that projections show 61% of Tennesseans will need some postsecondary credential by 2031.
Members pressed THEC on implementation and oversight. Gentile said the commission already conducts annual reviews but reserves major structural changes for the five‑year statutory cycle; last year’s legislation trimmed bureaucratic approval timelines for academic programs so institutions could move faster.
On funding, Gentile said THEC's request this year includes an approximately $75 million figure to recognize growth and outcomes in the formula, while stressing that the formula also reallocates existing state operating appropriations based on institutional performance.
WHAT HAPPENS NEXT: THEC said the statutory review committee will meet through the year and invite input from the legislature and stakeholders. Any substantial changes to the formula would be forwarded to the administration and, if necessary, to the General Assembly for statutory or budgetary action.
