2023 Utah Code › Title 53B - State System of Higher Education › Chapter 7 - Finance › Part 7 - Performance Funding › Section 706 - Performance metrics for institutions -- Determination of performance.

Effective 7/1/2023
53B-7-706.
Performance metrics for institutions -- Determination of performance.
(1)
(a)
(i)
(A) The board shall establish a model for determining a degree-granting institution's performance.
(B) Beginning in March 2021, the board shall establish a model for determining a degree-granting institution's or technical college's performance.
(ii) Beginning in May 2021, the board shall:
(A) set a five-year goal for the Utah System of Higher Education for each metric described in Subsection (2)(a)(ii);
(B) adopt five-year goals for each degree-granting institution and technical college that align with each goal described in Subsection (1)(a)(ii)(A); and
(C) ensure the goals the board adopts for each degree-granting institution and technical college described in Subsection (1)(a)(ii)(B) are sufficiently rigorous to meet the goals described in Subsection (1)(a)(ii)(A); and
(b)
(i) The board shall submit a draft of the model described in this section to the Higher Education Appropriations Subcommittee and the governor for comments and recommendations.
(ii) Beginning in 2021, and every five years thereafter, the board shall:
(A) submit the model described in Subsection (1)(a)(i) and the goals described in Subsection (1)(a)(ii) to the Higher Education Appropriations Subcommittee and to the governor for comments and recommendations; and
(B) consider the comments and recommendations described in Subsection (1)(b)(ii)(A), and make any necessary changes to the model described in Subsection (1)(a)(i) and the goals described in Subsection (1)(a)(ii).
(c) Beginning in 2021, and every five years thereafter, the Executive Appropriations Committee, the Higher Education Appropriations Subcommittee, and the Education Interim Committee shall prepare and jointly meet to consider legislation for introduction at the following general legislative session to adopt the goals described in Subsection (1)(a)(ii).
(2)
(a)
(i) The model described in Subsection (1)(a)(i)(A) shall include metrics, including:
(A) completion, measured by degrees and certificates awarded;
(B) completion by underserved students, measured by degrees and certificates awarded to underserved students;
(C) responsiveness to workforce needs, measured by degrees and certificates awarded in high market demand fields;
(D) institutional efficiency, measured by degrees and certificates awarded per full-time equivalent student; and
(E) for a research university, research, measured by total research expenditures.
(ii) Beginning in 2021, the board shall set the goals and establish the performance model described in Subsection (1)(a)(i)(B) for the following metrics:
(A) access;
(B) timely completion; and
(C) high-yield awards.
(b)
(i) Subject to Subsection (2)(b)(ii), the board shall determine the relative weights of the metrics described in Subsection (2)(a)(i).
(ii) The board shall assign the responsiveness to workforce needs metric described in Subsection (2)(a)(i)(C) a weight of at least 25% when determining a degree-granting institution's performance.
(c) Beginning in 2021, the board shall determine and establish in board policy, the definitions, measures, and relative weights of the metrics described in Subsection (2)(a)(ii) based on each degree-granting institution's and each technical college's mission.
(3)
(a) For each degree-granting institution, the board shall annually determine the degree-granting institution's:
(i) performance; and
(ii) change in performance compared to the degree-granting institution's average performance over the previous five years.
(b) For each degree-granting institution and technical college, the board shall annually:
(i) adopt annual performance goals for each metric described in Subsection (2)(a)(ii) that will advance the degree-granting institution or technical college toward achievement of the five-year goals described in Subsection (1)(a)(ii);
(ii) evaluate performance in meeting the goals described in Subsection (3)(b)(i); and
(iii) include a degree-granting institution's or technical college's performance under this section in the evaluation described in Subsection 53B-1-402(2)(i).
(4)
(a) The board shall use the model described in Subsection (1)(a)(i)(A) to make the report described in Section 53B-7-705 for determining a degree-granting institution's performance funding for a fiscal year beginning on or after July 1, 2018, but before July 1, 2024.
(b) For a fiscal year beginning on or after July 1, 2024, the board shall use the model described in Subsection (1)(a)(i)(B) to make the report described in Section 53B-7-705 for determining a degree-granting institution's or technical college's performance funding.
(5) At the end of each five-year period for which the board sets goals under Subsection (1)(a)(ii):
(a) the board shall:
(i) review the Utah System of Higher Education's performance in meeting the goals the board sets under Subsection (1)(a)(ii)(A);
(ii) review each degree-granting institution's and each technical college's performance in meeting the goals the board sets under Subsection (1)(a)(ii)(B); and
(iii) allocate any funds not allocated under Subsection 53B-7-705(6)(g) to each degree-granting institution and each technical college that meets or exceeds the goals the board sets under Subsection (1)(a)(ii)(B); and
(b) the Legislature may appropriate additional funds for the board to allocate to each degree-granting institution and each technical college that meets or exceeds goals as described in Subsection (5)(a)(iii).
(6) In year two or three of each five-year period for which the board sets goals under Subsection (1)(a)(ii), the following committees and the governor shall hold a joint open meeting to review the goals the board sets under Subsection (1)(a)(ii):
(a) the Executive Appropriations Committee;
(b) the Higher Education Appropriations Subcommittee; and
(c) the Education Interim Committee.
Amended by Chapter 254, 2023 General Session