By SUSAN JONES
The state Performance-based Funding Council has developed metrics and a formula for funding Pitt, Penn State and Temple starting in fiscal year 2026-27, but now the plan awaits approval from the state legislature and the governor.
The funding council, which was proposed by Gov. Josh Shapiro and approved by the legislature last year, issued its final report on May 5 after holding hearings at each of the schools since it began its work in January.
Pitt’s administration supports the use of performance metrics, particularly if it means new money for the University. Pitt and the other two state-related schools have not seen an increase in funding from the state since 2019.
At the May 15 University Senate meeting, Chancellor Joan Gabel said, “It's a different kind of conversation than we typically have in terms of our advocacy for state-level support. ... There is universal agreement that this is a beneficial way for us to partner with the state in terms of funding, and now we look to see what happens on its execution and implementation.”
Dwayne Pinkney, Pitt’s executive senior vice chancellor for administration and finance and chief financial officer and a non-voting member of the council, told the panel at its February hearing in Oakland that he agrees that the performance model should be based on new dollars, rather than reallocating existing funds.
“We’re excited to engage this work and join you in the identification and design of the appropriate elements and the metrics that demonstrate what our universities are doing today to move the needle on behalf of the commonwealth and the achievement of the outcomes that the state considers the best reflection of performance and value,” Pinkney said.
The governor’s 2025-26 budget proposal included $60 million to be distributed to the three schools on top of the base funding they received last year — for Pitt that’s $151.5 million, which it uses to give tuition discounts to in-state students.
The General Assembly is on break now for municipal primary elections, which take place May 20. After which, the budget talks will begin in earnest.
The council’s recommendations include:
1. Make the council permanent to oversee the performance-based funding model.
2. Apply the performance-based model to new funds and use existing funds as a base allocation.
3. Enact the model into law during fiscal year 2025-26 and fully implement it in fiscal year 2026-27 — again, all depending on approval from lawmakers, who also will determine the amount of any performance incentives. If any money is approved for performance incentives for the coming year, the council recommended that “the General Assembly consider providing an advance investment to the three universities so that they can begin to measure the priorities that will result in them making progress towards the goals set by these recommendations and the overall higher education goals of this Commonwealth.”
4. Determine a maximum performance allocation for each university based upon a fixed amount and each university’s share of the total weighted student count, which includes undergraduate enrollments, progression at 60 credits, Pell-eligible students, students from low-matriculating high schools, community college transfers, and high-priority occupation degrees awarded.
5. Determine each university’s performance allocation by evaluating several factors for in-state students only:
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Four-year graduation rates, which would be weighted more than the other criteria.
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Six-year graduation rates
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Six-year Pell-eligible graduation rates
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High-priority occupation degree production. The council used the Grow PA CIP Code list developed by the Pennsylvania Higher Education Assistance Agency to determine these occupations, which can be found in the report.
In the proposed formula, 95% of the funds appropriated for this program would fall under the performance-based allocation, determined by the factors above. The other 5% would reward:
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Improvement: An increase in any of the performance metrics over the prior year.
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College affordability: The ability of each school to keep increases in the cost of attendance for in-state students under the Higher Education Price Index.
According to the council’s report, as of 2023, 30 states utilized some form of performance-based distribution to fund higher education. On average, states allocate approximately 9.45% of their general fund for public higher education, with Pennsylvania below the national average at 4.57%.
Pitt said in a statement: “We appreciate the work of the Performance-based Funding Council and the thoughtful collaboration that has gone into developing this inaugural formula. This effort reflects a shared commitment to building a strong future for our students and Pennsylvania’s workforce and economy. We look forward to continued partnership with the commonwealth’s leaders as the proposal advances through the legislative process.”
The Performance-based Funding Council is chaired by House Republican leader Rep. Jesse Topper (Bedford and Fulton counties) and also includes Sen. Wayne Langerholc Jr. (R-Cambria and Centre), Sen. Jay Costa (D-Allegheny) and Rep. Peter Schweyer (D-Lehigh) and Angela Fitterer, interim acting secretary of education. Representatives from the three universities serve as non-voting members.
Susan Jones is editor of the University Times. Reach her at suejones@pitt.edu or 724-244-4042.
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