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THEC continues five‑year review of outcomes‑based funding formula; staff flag redistribution concerns

Tennessee Higher Education Commission — Finance and Operations Committee · February 20, 2026

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Summary

Staff briefed the committee on a five‑year review of the outcomes‑based funding formula, recommending a pivot toward four‑year on‑time completion metrics and a review of workforce premium awards; staff also highlighted growing redistribution within the formula (to about $18.5 million in FY27), prompting questions about sustainability and fairness.

THEC staff updated the Finance & Operations Committee on the statutory five‑year review of the outcomes‑based funding formula on Feb. 19, 2026. Russell Van Zimerman outlined two priority proposals that staff expect to bring forward: (1) a pivot from measuring 'on‑time' degree completion at six years to a four‑year on‑time completion metric, and…

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