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THEC signals review of outcomes-based funding formula; staff suggest shifting on‑time metric to four years
Summary
THEC staff told the committee they are reviewing the outcomes-based funding formula and are considering changing the on‑time completion metric from six years to four years and updating which awards receive a workforce premium. THEC invited committee input.
Russell Van Zomeren, senior director of fiscal policy for THEC, told the Education Committee the outcomes-based funding formula — introduced in the 2010 Complete College Tennessee Act — measures student progress and ties state appropriations to outcomes rather than enrollment.
Van Zomeren highlighted two proposals under review: shortening the on‑time completion window from six years to four years and regularly updating the "workforce investment premium" that directs additional funding toward awards (currently focused on STEM and health fields) to match state labor-market needs. "We think it's due time that we adjust the formula to recognize 4 year graduation instead of 6 year graduation," he said.
Gentile and Van Zomeren said the proposal will go through the statutory review committee and a series of stakeholder meetings; they asked the House committee for input and signaled follow-ups on modeling and specific metric changes. Committee members raised timing and implementation concerns and requested data on enrollment and the distributional effects of any change.
