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Performance-Based Funding Council Adopts Report, Makes Recommendations

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Pennsylvania House Republican Leader Jesse Topper (R-Bedford/Fulton) Monday announced the Performance-Based Funding Council unanimously adopted a report and recommendations on creating a performance-based funding model for new funding for Penn State University, the University of Pittsburgh and Temple University.

Topper chaired the council, which was established by Act 90 of 2024 and began meeting in January 2025. Hearings were held in Harrsiburg and at each of the subject schools.

“I want to thank the members of the Performance-Based Funding Council, as well as those who provided input into the process of developing this report and associated recommendations,” Topper said. “This report and recommendations provide a path toward additional accountability for three of the largest schools receiving state support while ensuring a sustainable way of measuring performance and related funding going into the future.”

According to the report adopted Monday, the council made the following recommendations:

·         Make the council permanent to oversee the performance-based funding model.

·         Apply the performance-based model for new funds beginning in fiscal year 2026-27, use existing funds as a base allocation and provide institutional advancement funding in fiscal year 2025-26.

·         Determine a performance allocation for each university based upon a fixed amount and each university’s share of the total weighted student count. The weighted student count for each university includes undergraduate enrollments, progression at 60 credits, Pell-eligible students, students from low matriculating high schools, community college transfers, and high-priority occupation degrees awarded.

·         Determine each university’s performance-based allocation by evaluating performance based upon four-year graduation rates, six-year graduation rates, six-year Pell-eligible graduation rates, and high-priority occupation degrees, and incentivizing college affordability and rewarding improvement.

With the report’s adoption, the council will begin drafting legislation based upon the recommendations for the General Assembly to consider in the near future.

You can read the final report in full HERE.

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