2023 Utah Code › Title 53B - State System of Higher Education › Chapter 7 - Finance › Part 7 - Performance Funding › Section 705 - Determination of full new performance funding amount -- Role of appropriations subcommittee -- Program review.

Effective 7/1/2023
53B-7-705.
Determination of full new performance funding amount -- Role of appropriations subcommittee -- Program review.
(1) In accordance with this section, and based on money deposited into the account, the Legislature shall, as part of the higher education appropriations budget process, annually determine the full new performance funding amount for each:
(a) degree-granting institution; and
(b) technical college.
(2)
(a) Before January 1, 2024, the Legislature shall annually allocate:
(i) 90% of the money in the account to degree-granting institutions; and
(ii) 10% of the money in the account to technical colleges.
(b) After January 1, 2024, the Legislature shall annually allocate:
(i) 80% of the money in the account to degree-granting institutions; and
(ii) 20% of the money in the account to technical colleges.
(3)
(a) The Legislature shall determine a degree-granting institution's full new performance funding amount based on the degree-granting institution's prior year share of:
(i) full-time equivalent enrollment in all degree-granting institutions; and
(ii) the total state-funded appropriated budget for all degree-granting institutions.
(b) In determining a degree-granting institution's full new performance funding amount, the Legislature shall give equal weight to the factors described in Subsections (3)(a)(i) and (ii).
(4)
(a) The Legislature shall determine a technical college's full new performance funding amount based on the technical college's prior year share of:
(i)
(A) before January 1, 2024, membership hours for all technical colleges; and
(B) after January 1, 2024, full-time equivalent enrollment for all technical colleges; and
(ii) the total state-funded appropriated budget for all technical colleges.
(b) In determining a technical college's full new performance funding amount, the Legislature shall give equal weight to the factors described in Subsections (4)(a)(i) and (ii).
(5) Annually, at least 30 days before the first day of the legislative general session the board shall submit a report to the Higher Education Appropriations Subcommittee on each degree-granting institution's and each technical college's performance.
(6)
(a) In accordance with this Subsection (6), and based on the report described in Subsection (5), the Legislature shall determine for each degree-granting institution and each technical college:
(i) the portion of the full new performance funding amount earned; and
(ii) the amount of new performance funding to recommend that the Legislature appropriate, from the account, to the degree-granting institution or technical college.
(b)
(i) This Subsection (6)(b) applies before January 1, 2024.
(ii) A degree-granting institution earns the full new performance funding amount if the degree-granting institution has a positive change in performance of at least 1% compared to the degree-granting institution's average performance over the previous five years.
(iii) A technical college earns the full new performance funding amount if the technical college has a positive change in the technical college's performance of at least 5% compared to the technical college's average performance over the previous five years.
(c) After January 1, 2024, a degree-granting institution or technical college earns the full new performance funding amount if the degree-granting institution or technical college meets the annual performance goals the board sets under Subsection 53B-7-706(1)(a)(ii).
(d) Before January 1, 2024, a degree-granting institution or technical college that has a positive change in performance that is less than a change described in Subsection (6)(b) is eligible to receive a prorated amount of the full new performance funding amount.
(e) Before January 1, 2024, a degree-granting or technical college that has a negative change, or no change, in performance over a time period described in Subsection (6)(b) is not eligible to receive new performance funding.
(f) After January 1, 2024, a degree-granting institution or technical college that does not meet the goals the board sets under Subsection 53B-7-706(1)(a)(ii):
(i) is not eligible to receive the full new performance funding amount; and
(ii) is eligible to receive a prorated amount of the full new performance funding amount for performance that is greater than zero as measured by the model the board establishes under Subsection 53B-7-706(1)(a)(i)(B).
(g) After January 1, 2024, if a degree-granting institution or technical college does not earn the full new performance funding amount as described in Subsection (6)(c), the board:
(i) shall set aside the unearned new performance funding; and
(ii) may, at the end of an annual performance goal period within a five-year period for which the board sets goals under Subsection 53B-7-706(1)(a)(ii), reallocate the funds set aside under Subsection (6)(g)(i) to a degree-granting institution or technical college that meets or exceeds the degree-granting institution's or technical college's:
(A) previous year's annual performance goal; and
(B) performance goal that the institution previously failed to meet which caused the funding to be set aside.
(7) An appropriation described in this section is ongoing.
(8) Notwithstanding Section 53B-7-703 and Subsections (6) and (7), the Legislature may, by majority vote, appropriate or refrain from appropriating money for performance funding as circumstances require in a particular year.
Amended by Chapter 254, 2023 General Session