Perry pushes to reform state funding

With legislators back in session this week, both Rep. Chapin Rose (R-Mahomet) and President Bill Perry are continuing to push for outcomes-based funding for Illinois state universities.

On Feb. 14, Rose filed House Bill 1503 aiming to reform state funding for Illinois colleges and universities by appropriating state monies based on how the school performs at certain criteria, including retention rates, graduation and academics, by 2013.

“This is higher education coming together and recognizing a couple of things-recognizing their tax resources are limited and they are going to be limited for the foreseeable future,” Rose said. “On the current course we’re on, all of our ships are sinking and everybody will have to do a better job allocating what precious resources we have.”?

Rose said he is a realist when it comes to available resources in Illinois and recognizes there is no funding available-especially with Illinois continuing to run a deficit despite one of the biggest tax hikes in the state’s history.

“Frankly, we’re not going to be able to fund weaknesses,” Rose said. “I have to make sure we protect our strengths.”

One of the weaker performers, Rose said, includes Chicago State University and its diminishing retention rate. Of the 372 students who started college in fall 2007, only 55 percent returned the next year.

The six-year graduation rate for the university is also crippling. Only 12.8 percent of first-year students in 2002 graduated by 2008.

Per the bill’s recommendation, the state would work with the Illinois Board of Higher Education to develop funding methods.

“Maybe the CSU model can be focused on performance for better retention,” Rose said. He later continued, “(CSU) should not get tax payer dollars to subsidize mediocrity. We’re coddling underperforming programs and by doing so we’ve allowed the real gems to diminish.”

This push for outcomes-based funding began in spring 2010 when the Illinois General Assembly approved Senate Joint Resolution 88, asking the IBHE to organize the Higher Education Finance Study Commission, focused on different implementation methods for outcomes-based funding.

Since then, both Rose and the university have been vocal in supporting this funding method. In August, Perry wrote a letter to the Finance Study Commission highlighting his main reasons for pushing this effort. Most recently, Perry testified on behalf of outcomes-based funding in front of the Senate Appropriations II Committee on March 9.

“In the current economic climate, efficiency and effectiveness in support of excellence and access must be our primary goal,” Perry said in his testimony to the committee.

Both Perry and Derek Markley, the special assistant to the president, agreed the university would continue to show support for the bill at any opportunity available.

However, the focus on performance-based funding could draw similar criticism that faced 2001’s No Child Left Behind Act.

Rose said a significant difference between outcomes-based funding and NCLB is it is not legislation forced on educators.

“IBHE made this recommendation. This was not a tossed-down edict-this came from the bottom up from the universities to the state,” Rose said.

In 2008, Eastern had the highest student retention rate and the second highest graduate rate among the six four-year public master’s institutions in Illinois. Perry said the university is not planning on changing this anytime soon.

“The university will continue to operate as efficiently as possible,” he added.

However, in case of emergencies or institutions fail to improve their programs, Perry said there will be a stop-loss limitation for funding so universities will still receive enough to function.

Rose said the implementation of outcomes-based funding is key.

“If all you have is a distinct lack of creativity, No Child Left Behind is what you are going to get,” Rose said. He later continued, “Outcomes-based funding will be tailor-made to each campus. No Child Left Behind was a blanket rule, and that blanket rule hasn’t exactly provided quality.”

Rose has also found bipartisan support with Chicago Democrat Sen. Edward Maloney who has introduced Senate Bill 1773, legislation almost identical to Rose’s. Maloney’s support of outcomes-based funding says a great deal about the bill, Rose said.

“(Maloney) is a Democrat, I’m a Republican. He’s from Chicago, I’m from downstate – what does that tell you?” he added.

Although Rose said he hopes to bring his bill forward during the next three weeks in session, he is not sure he will have the opportunity to given the bulk of other bills being proposed.

However, if the senate passes Maloney’s bill, Rose said he would most likely join his effort once the bill reaches the House at the end of April.

Shelley Holmgren can be reached at 581-2812 or [email protected]