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IHL requests restoration of cuts, seeks $72M to move closer to SREB per‑student funding; board to craft new allocation method
Summary
The Institutions of Higher Learning told JLBC it seeks restoration of FY26 cuts and an additional $72 million to bring per‑student support closer to the Southern Regional Education Board average, and said the board is updating its funding allocation methodology to include base funding, enrollment shifts and performance incentives.
Trustee Russell Ogletree and Commissioner Alfred Rankins Jr. briefed the committee on the Institutions of Higher Learning (IHL) system’s FY27 priorities, focusing on faculty pay competitiveness, deferred maintenance and a forthcoming revision to the system allocation method.
Speakers said faculty salaries remain substantially below peer averages (IHL noted faculty pay about 23% below SREB averages), deferred maintenance is large (about $2.7 billion reported) and institutions vary widely in enrollment, graduation and mission. The board said it has engaged NCHMS (National Center for Higher Education Management Systems) to help develop a revised allocation formula based on three tenants: a base operational allocation for every campus, enrollment growth/decline adjustments, and incentives tied to board‑identified performance metrics. The board asked the legislature to restore recent cuts and consider a $72 million supplemental request to narrow the gap with peer states; it also requested $80 million in capital expense funds for repair and renovation.
Legislators asked for district‑by‑district and institution‑by‑institution attainment and graduation metrics and sought assurance that the new formula will account for earmarked line items, local tuition strategies (including institutions that do not charge a nonresident surcharge) and other revenue streams. Trustees said the board will provide detailed data comparing each campus to regional peers and noted that new methodology choices will change allocations and require careful transition planning.
The IHL representatives did not propose immediate statutory changes but committed to share data and to brief the committee as the funding model is developed. Lawmakers asked for the board’s proposed metrics and impacts well ahead of March budget completion to allow legislative review and deliberation.
