The Arkansas Department of Higher Education’s Coordinating Board has given its approval to productivity funding models for the state’s universities and colleges. The action came Friday as the board met on the campus of Arkansas State University-Mountain Home for its quarterly meeting.
The board’s approval makes Arkansas one of only three states adopting a productivity funding formula for both two-year colleges and four-year universities, Governor Asa Hutchinson said Friday.
Act 148 of 2017 signed into law by Gov. Hutchinson in February directed the adoption of a productivity-based funding model for state supported institutions of higher education.
At the time the bill was signed into law, Hutchinson said in a statement he made it a goal of his administration when he was elected to increase the percentage of Arkansans who attain post-secondary degrees from 40 percent to 60 percent by 2025.
The new funding formula is based on student progress rather than student enrollment. Hutchinson said the shift in focus will encourage and empower Arkansas students to successfully attain their degree, license or certificate in a timely manner.
The productivity funding formula consists of four categories–effectiveness, affordability, adjustments and efficiency. It was developed over a two-year period and has received overwhelming support from the Arkansas Legislature and state colleges and universities.
Governor Hutchinson also committed an additional $10 million to higher education funding. This will be the first time since 2005 there has been a substantial increase in state funding for higher education. The $10 million will be distributed to colleges and universities based on their productivity under the new formula.
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