7 LONG TITLE
8 General Description:
9 This bill amends and enacts provisions related to higher education funding.
10 Highlighted Provisions:
11 This bill:
12 ▸ defines terms;
13 ▸ amends provisions related to mission based funding for higher education
15 ▸ directs the State Board of Regents to establish performance funding for higher
16 education institutions;
17 ▸ requires the State Board of Regents and higher education institutions to annually
18 report to the Higher Education Appropriations Subcommittee on the use of
19 performance funding; and
20 ▸ makes technical and conforming changes.
21 Money Appropriated in this Bill:
23 Other Special Clauses:
25 Utah Code Sections Affected:
27 53B-7-101, as last amended by Laws of Utah 2011, Chapter 73
29 Be it enacted by the Legislature of the state of Utah:
30 Section 1. Section 53B-7-101 is amended to read:
31 53B-7-101. Combined requests for appropriations -- Board review of operating
32 budgets -- Submission of budgets -- Recommendations -- Hearing request --
33 Appropriation formulas -- Allocations -- Dedicated credits -- Financial affairs.
34 (1) As used in this section:
35 (a) (i) "Higher education institution" or "institution" means an institution of higher
36 education listed in Section 53B-1-102.
37 (ii) "Higher education institution" or "institution" does not include the Utah College of
38 Applied Technology.
39 (b) "Research university" means the University of Utah or Utah State University.
41 budgets of higher education institutions for inclusion in a state appropriations act.
42 (b) The board's combined budget recommendation shall include:
43 (i) employee compensation;
44 (ii) mandatory costs, including building operations and maintenance, fuel, and power;
45 (iii) mission based funding described in Subsection [
46 (iv) performance funding described in Subsection (4);
48 and technology infrastructure; and
50 (c) The board's recommendations shall be available for presentation to the governor
51 and to the Legislature at least 30 days prior to the convening of the Legislature, and shall
52 include schedules showing the recommended amounts for each institution, including separately
53 funded programs or divisions.
54 (d) The recommended appropriations shall be determined by the board only after it has
55 reviewed the proposed institutional operating budgets, and has consulted with the various
56 institutions and board staff in order to make appropriate adjustments.
58 (b) Mission based funding shall include:
59 (i) enrollment growth; and
60 (ii) up to three strategic priorities.
61 (c) The strategic priorities described in Subsection [
62 (i) approved by the board; and
63 (ii) designed to improve the availability, effectiveness, or quality of higher education in
64 the state.
72 recommend to the Legislature ways to address funding any inequities for institutions as
73 compared to institutions with similar missions.
74 (4) (a) The board shall establish performance funding.
75 (b) Performance funding shall include metrics approved by the board, including:
76 (i) degrees and certificates granted;
77 (ii) services provided to traditionally underserved populations;
78 (iii) responsiveness to workforce needs;
79 (iv) institutional efficiency; and
80 (v) for a research university, graduate research metrics.
81 (c) The board shall:
82 (i) award performance funding appropriated by the Legislature to institutions based on
83 the institution's success in meeting the metrics described in Subsection (4)(b); and
84 (ii) reallocate funding that is not awarded to an institution under Subsection (4)(c)(i)
85 for distribution to other institutions that meet the metrics described in Subsection (4)(b).
87 days prior to the convening of the Legislature in accordance with procedures established by the
89 (b) Funding requests pertaining to capital facilities and land purchases shall be
90 submitted in accordance with procedures prescribed by the State Building Board.
92 explanations and supporting data.
93 (b) The appropriations recommended by the board shall be made with the dual
94 objective of:
95 (i) justifying for higher educational institutions appropriations consistent with their
96 needs, and consistent with the financial ability of the state; and
97 (ii) determining an equitable distribution of funds among the respective institutions in
98 accordance with the aims and objectives of the statewide master plan for higher education.
101 (b) After the governor delivers his budget message to the Legislature, the board shall
102 request hearings on the recommended appropriations with the appropriate committees of the
104 (c) If either the total amount of the state appropriations or its allocation among the
105 institutions as proposed by the Legislature or its committees is substantially different from the
106 recommendations of the board, the board may request further hearings with the Legislature or
107 its appropriate committees to reconsider both the total amount and the allocation.
109 its use and for the use of the governor and the committees of the Legislature in making
110 appropriation recommendations.
112 minimum tuitions, resident and nonresident, for each institution which it considers necessary to
113 implement the budget recommendations.
114 (b) The board may fix the tuition, fees, and charges for each institution at levels it finds
115 necessary to meet budget requirements.
117 budgeted in accordance with institutional work programs approved by the board, provided that
118 the expenditures funded by appropriations for each institution are kept within the
119 appropriations for the applicable period.
120 (b) A president of an institution shall:
121 (i) establish initiatives for the president's institution each year that are:
122 (A) aligned with the strategic priorities described in Subsection [
123 (B) consistent with the institution's mission and role; and
124 (ii) allocate the institution's mission based funding to the initiatives.
126 grants, and proceeds from sales received by the institutions are appropriated to the respective
127 institutions and used in accordance with institutional work programs.
129 handle its own financial affairs under the general supervision of the board.
131 shall be distributed to the [
132 fund the items described in Subsection [
133 (b) During each general session of the Legislature following a fiscal year in which the
134 Legislature provides an appropriation for mission based funding or performance funding, the
135 board and institutions shall report to the Legislature's Higher Education Appropriations
136 Subcommittee on the use of the previous year's mission based funding[
137 funding, including performance outcomes relating to the strategic initiatives approved by the