Editor's note: The following op-ed by Penn State President Neeli Bendapudi first appeared in PennLive on Sunday, Feb. 4.
Last October, I called on the General Assembly, governor and universities to collaborate on a performance-based funding model for higher education focused on workforce and economic development, transparency and accountability for taxpayer funds, and meaningful outcomes for our students.
Performance-based funding is not new — most states use performance-based metrics to fund public higher education — and it is not a novel concept in Pennsylvania, either, as this idea has surfaced in the General Assembly before with bipartisan support. I am so pleased that Gov. Josh Shapiro will formally endorse performance-based funding as part of his blueprint for higher education — based on the work of the state’s Higher Education Working Group, of which I was a part. I urge lawmakers to work hand-in-hand with me and my fellow university leaders to prioritize this critical issue during the current legislative session.
For too long, higher education funding in Pennsylvania has lacked clarity, fairness and predictability. Appropriations for Penn State and its fellow state-related universities were last increased in 2019 and, in current dollars, Penn State’s funding today remains virtually unchanged from the year 2000 — despite nearly a quarter century of inflation and significant increases in instructional and operational costs. While legitimate short-term state budget concerns may have driven funding over the years, the net effect is a long decline in state investment that is becoming ever-more detrimental to the future of the commonwealth, its citizens, and its institutions of higher education.
Pennsylvania ranks 49th nationally in per-student support for higher education and within this environment, Penn State, despite its standing as the commonwealth’s flagship public research university, receives the lowest funding on a per-student basis of any public university in Pennsylvania — and significantly so. Penn State is not the only institution feeling the strain of stagnant state support, so the governor’s announced prioritization of higher education reforms and funding is welcome news for students across the state.
To remain competitive nationally, to keep our young people in Pennsylvania, and to have the type of educated workforce necessary to attract new businesses and grow the state’s economy, we must have strong, high-quality public research institutions that drive breakthrough innovations, fuel economic growth, and provide cutting-edge opportunities for our Pennsylvania-resident students.
The need to increase funding for higher education is evident, but the mechanism to do so has become outdated and politically polarizing. I believe strongly that public universities, as recipients of taxpayer funds, must be held accountable for how those dollars are spent. That is why Penn State voluntarily launched a new accountability report last fall to make a variety of data publicly available in one location, at psu.edu/accountability.
With both elected and university leaders at the table, we can craft a transparent model that eliminates yearly funding uncertainty and rewards universities with additional dollars for hitting agreed-upon, outcomes-based metrics that align with shared goals for workforce and economic development, college access and affordability, and positive student outcomes.
The exact funding model can be tailored for Pennsylvania — considering the mission and structure of each university. Metrics like graduation rates; emphasis on high-need career fields; educating in-state students; and providing opportunities for low-income, first-generation and traditionally underserved students have proven successful in other states. In addition, increased state support would mean contained costs for Pennsylvania students and families.
Now, with the forward momentum from the governor’s announced support and the stamp of our working group, it is the opportune time to develop a performance-based funding model for higher education that increases the state’s investment in public universities and distributes it in a way that is predictable, transparent and outcomes based.
With the full commitment of our elected leaders on both sides of the aisle, we can work together on a funding model that will benefit our young people, support our universities and strengthen Pennsylvania’s future.
Neeli Bendapudi
Penn State President