Brodsky, David; Edwards, David; Chatzimanolis, Stylianos
University of Tennessee at Chattanooga
Place of Publication
Tennessee was the first state to introduce performance based funding metrics into their higher education system in 1979. Over the past 30+ years, the state reevaluated and amended their formula every five years. What was initially an additional allocation that could be earned on top of an institution’s standard budget has now become the sole method of allocating funds for higher education in Tennessee. In 2010 the Tennessee legislature passed the Complete College Tennessee Act, Which put the state on the path to be the first state in the nation that allocates 100% of higher education funds on the basis of a performance based funding formula. In order to learn how Tennessee ultimately created this policy, I looked at the various changes to Tennessee’s funding formulae since it was introduced in 1979, evaluating the purpose of each change, and culminating in a complete analysis of Tennessee’s radical new formula. Although for the first time in Tennessee’s history, funding changes were initially proposed by the state legislature, the Tennessee Higher Education Commission, who was tasked with developing the formula, was able to take all of the lessons learned since 1979 and developed a formula that initially appears to be stable and will lead to success. By examining the process that Tennessee went through, my hope is that if Tennessee is successful in implementing this 100% formula, other states may appreciate the process it took to get to this model, and not jump into formulation of a formula without laying the necessary groundwork.
B. A.; An honors thesis submitted to the faculty of the University of Tennessee at Chattanooga in partial fulfillment of the requirements of the degree of Bachelor of Arts.
State universities and colleges -- United States -- Finance; Education, Higher -- United States -- Finance; Program budgeting -- United States
American Politics | Education Economics | Higher Education
Williams, Evan, "Tennessee: the birth and development of performance-based funding in higher education" (2014). Honors Theses.