PRINTER'S NO. 1865

THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

No.

1574

Session of

2023

INTRODUCED BY TOPPER, BERNSTINE, ECKER, IRVIN, KAUFFMAN,

MARCELL, MOUL, ROWE, SMITH AND WARNER, JULY 18, 2023

REFERRED TO COMMITTEE ON EDUCATION, JULY 18, 2023

university performance-based funding incentive.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1. The act of March 10, 1949 (P.L.30, No.14), known

as the Public School Code of 1949, is amended by adding an

article to read:

Section 2001-L. Scope of article.

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context clearly indicates otherwise:

"Base State funding." The amount of funding appropriated to

each State-related university during the 2023-2024 fiscal year.

"Council." The Performance-based Funding Council established

under section 2003-L.

"Department." The Department of Education of the

Commonwealth.

"Institutional investment." A reallocated percentage, no

less than 3% nor more than 10%, of the aggregate base State

funding to the State-related universities as determined by the

council.

(2) State's investment for excellence.

"State-related university." The Pennsylvania State

University, including the Pennsylvania College of Technology,

the University of Pittsburgh and Temple University and

associated branch campuses.

"State wage interchange system." A system developed by the

United States Department of Labor and United States Department

of Education to facilitate the interstate exchange of wage data

between participating state agencies in order to satisfy

performance reporting requirements under 29 U.S.C. § 3141

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reward excellence as measured by the performance-based funding

metrics at a State-related university.

Section 2003-L. Performance-based Funding Council.

(a) Establishment.--The Performance-based Funding Council is

established within the department for the purpose of allocating

State funding to State-related universities based on student

outcomes.

(b) Membership.--The council shall consist of the following

members:

(1) The Secretary of Education of the Commonwealth or a

designee.

(5) Two individuals appointed by the Speaker of the

House of Representatives.

(6) An individual appointed by the Minority Leader of

the House of Representatives.

(7) Two current Pennsylvania residents with recognized

subject matter expertise in higher education funding, who

must be appointed by the Governor and confirmed by the

Senate .

(c) Chairperson.--The chairperson and vice chairperson of

the council shall be selected by the members of the council.

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or (6) shall serve a three-year term.

(2) A member appointed under subsection (b)(7) shall

serve a four-year term.

(3) After the expiration of each initial term:

(i) A member appointed under subsection (b)(3), (4),

(5) or (6) shall be appointed for a term of four years.

(ii) A member appointed under subsection (b)(7)

shall be appointed for a term of five years.

(e) Quorum.--A majority of the members of the council shall

constitute a quorum, and a quorum shall be required for all

actions.

(g) Reimbursement of expenses.--The members of the council

may not receive compensation for their services but shall be

reimbursed by the department for all necessary travel and other

reasonable expenses incurred in connection with the performance

of their duties.

(h) Administrative support.--The department shall provide

administrative support, data, research, meeting space and other

assistance or information required by the council to carry out

the duties under this article.

(i) Actions.--A vote of the majority of the members of the

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(1) The council shall meet no less than four times a

year at the call of the chairperson.

(2) The council shall hold its first meeting no later

than 90 business days after the effective date of this

section.

(3) All meetings shall be conducted in accordance with

the requirements of 65 Pa.C.S. Ch. 7 (relating to open

meetings).

Section 2004-L. Duties of the council.

The council shall:

(1) Adopt guidelines to administer a performance-based

(3) Monitor State-related universities with performance

improvement plans under section 2008-L .

(4) Consult with the department and other Commonwealth

agencies and utilize experts to assist in carrying out the

duties of this article.

(5) Hold hearings and receive input from interested

parties, including State-related universities, parents and

students.

Section 2005-L. State-related university performance-based

funding incentive.

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2006-L, to a State-related university.

Section 2006-L. Performance-based metrics.

(a) General rule.--The council shall adopt the following

performance-based metrics to evaluate a State-related

university's performance for eligibility to receive performance-

based funding from the Commonwealth:

(1) The four-year graduation rate for first-time-in-

college students.

(2) The percentage of undergraduate students enrolled

who received a Pell Grant during the previous school year.

(3) The six-year graduation rate for students who are

(7) Net tuition and fees per 120 credit hours.

(8) Postgraduation employment rates and salaries,

including wage thresholds that reflect the added value of a

baccalaureate degree. The department shall provide wage data

from the State wage interchange system to the council.

(9) The number of students enrolled and the number of

degrees attained in the following fields:

(i) Agriculture.

(ii) Science.

(iii) Technology.

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enrolled, and the number of credits earned.

(11) The percentage of credits articulated.

(12) Other metrics provided by each State-related

university.

(b) Minimum eligibility thresholds to be adopted.--The

council shall adopt minimum eligibility thresholds to evaluate a

State-related university's achievement of institutional

excellence or need for improvement and minimum requirements for

eligibility to receive a performance-based funding incentive.

(c) Publication.--Within 30 days of the adoption of

performance-based funding metrics or minimum eligibility

in the Pennsylvania Bulletin.

(d) Periodic review.--The council shall review, and revise

if necessary, the performance-based funding metrics and minimum

eligibility thresholds at least every five years. Within 60 days

of the completion of the review, the council shall issue a

report to the Governor, the department and the General Assembly,

post the report on the department's publicly accessible Internet

website and transmit notice of the updates to the Legislative

Reference Bureau for publication in the next available issue of

the Pennsylvania Bulletin.

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Section 2007-L. Allocation of funding.

(a) General rule.--Beginning with the 2024-2025 fiscal year,

the amount of funds available for allocation to the State-

related universities based on the performance-based funding

incentive provisions of this article shall be from the base

State funding.

(b) Minimum eligibility thresholds.--

(1) The council shall establish minimum performance

funding eligibility thresholds for the State's investment for

excellence and the institutional investments.

(2) A State-related university that meets the minimum

all State-related universities eligible for the State's

investment for excellence if all State-related universities

meet the minimum institutional investment threshold under the

performance-based funding model.

(c) Determination of share.--A State-related university's

share of the performance funding shall be calculated based on

the university's performance relative to the established metrics

in conjunction with the institutional size and scope.

(d) Annual distribution.--The department shall annually

distribute performance-based funding, as provided in this

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council shall submit a report containing the rankings and award

distributions for the fiscal year which ended the prior June 30

to the Governor, the department and the General Assembly. A copy

of the report shall be posted on the department's publicly

accessible Internet website.

Section 2008-L. Improvement plans.

(a) Withholding of institutional investment.--The department

shall withhold a portion of a State-related university's

institutional investment if the State-related university fails

to meet the minimum institutional investment performance funding

eligibility threshold. The State-related university shall submit

(c) Monitoring reports.--The State-related university shall

submit monitoring reports to the council by December 31 and May

31 of each year in which an improvement plan is in place. The

ability of the university to submit an improvement plan to the

council is limited to one fiscal year.

(d) Period of withheld institutional investment.--

(1) The department shall withhold disbursement of the

institutional investment until the monitoring report is

approved by the council.

(2) A State-related university determined by the council

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