Rep. Norm Thurston — Voting Record

Bill

Number

S.B. 232 (2015GS)

Sponsor

Sen. Urquhart, S.

Final action

Governor Signed 3/30/2015

Outcome

Became law — signed by Gov. Gary R. Herbert

Summary

What it does

• This bill:
• defines terms;
• amends provisions related to mission based funding for higher education institutions;
• directs the Board of Regents to establish performance funding for higher education institutions;
• requires the Board of Regents and higher education institutions to annually report to the Higher Education Appropriations Subcommittee on the use of performance funding; and
• makes technical and conforming changes.

Every vote on this bill

Bill text

This document includes Senate Committee Amendments incorporated into the bill on Thu, Feb 26, 2015 at 10:39 AM by lpoole.
This document includes Senate 3rd Reading Floor Amendments incorporated into the bill on Mon, Mar 9, 2015 at 10:52 AM by lpoole.
HIGHER EDUCATION PERFORMANCE FUNDING
GENERAL SESSION
STATE OF UTAH
Chief Sponsor: Stephen H. Urquhart
House Sponsor: 
 Keith Grover
LONG TITLE
General Description:
This bill amends and enacts provisions related to higher education funding.
Highlighted Provisions:
This bill:
▸ defines terms;
▸ amends provisions related to mission based funding for higher education
institutions;
▸ directs the Board of Regents to establish performance funding for higher education
institutions;
▸ requires the Board of Regents and higher education institutions to annually report to
the Higher Education Appropriations Subcommittee on the use of performance
funding; and
▸ makes technical and conforming changes.
Money Appropriated in this Bill:
None
Other Special Clauses:
None
Utah Code Sections Affected:
AMENDS:
53B-7-101
, as last amended by Laws of Utah 2011, Chapter 73
Be it enacted by the Legislature of the state of Utah:
Section 1. Section 
53B-7-101
 is amended to read:
53B-7-101.
Combined requests for appropriations -- Board review of operating
budgets -- Submission of budgets -- Recommendations -- Hearing request --
Appropriation formulas -- Allocations -- Dedicated credits -- Financial affairs.
(1) As used in this section
Ŝ→ [
,
] 
:
34a 
(a)
Ŝ→
(i)
 ←Ŝ
←Ŝ
"
Ŝ→ [
higher
] 
Higher
 ←Ŝ
education institution" or "institution" means an
institution of higher education listed in Section 
53B-1-102
.
35a1 
Ŝ→ 
(ii) "Higher education institution" or "institution" does not include the Utah College of
35a2 
Applied Technology.
 ←Ŝ
35a 
Ŝ→ 
(b) "Research university" means the University of Utah or Utah State University.
 ←Ŝ
[
(1)
] 
(2)
 (a) The board shall recommend a combined appropriation for the operating
budgets of higher education institutions for inclusion in a state appropriations act.
(b) The board's combined budget recommendation shall include:
(i) employee compensation;
(ii) mandatory costs, including building operations and maintenance, fuel, and power;
(iii) mission based funding described in Subsection [
(2)
] 
(3)
;
(iv) performance funding described in Subsection (4);
[
(iv)
] 
(v)
 statewide and institutional priorities, including scholarships, financial aid,
and technology infrastructure; and
[
(v)
] 
(vi)
 unfunded historic growth.
(c) The board's recommendations shall be available for presentation to the governor
and to the Legislature at least 30 days prior to the convening of the Legislature, and shall
include schedules showing the recommended amounts for each institution, including separately
funded programs or divisions.
(d) The recommended appropriations shall be determined by the board only after it has
reviewed the proposed institutional operating budgets, and has consulted with the various
institutions and board staff in order to make appropriate adjustments.
[
(2)
] 
(3)
 (a) The board shall establish mission based funding.
(b) Mission based funding shall include:
(i) enrollment growth; and
(ii) up to three strategic priorities.
(c) The strategic priorities described in Subsection [
(2)
] 
(3)
(b)(ii) shall be:
(i) approved by the board; and
(ii) designed to improve the availability, effectiveness, or quality of higher education in
the state.
[
(d) When recommending an allocation of mission based funding to a
doctorate-granting university, as defined by the board, or Southern Utah University, the board
shall place greater emphasis on the university's fulfillment of the strategic priorities described
in Subsection (2)(b)(ii).
]
[
(e) Notwithstanding Subsection (2)(d), the board may allocate funding for a modest
amount of growth to doctorate-granting institutions and Southern Utah University.
]
[
(f)
] 
(d)
 Concurrent with recommending mission based funding, the board shall also
recommend to the Legislature ways to address funding any inequities for institutions as
compared to institutions with similar missions.
(4) (a) The board shall establish performance funding.
(b) Performance funding shall include
Ŝ→ 
metrics approved by the board,
71a 
including
 ←Ŝ
:
Ŝ→ [
(i) three systemwide metrics, approved by the board; and
(ii) up to two institutional metrics, approved by the board.
]
73a 
(i) degrees and certificates granted;
73b 
 (ii) services provided to traditionally underserved populations;
73c 
 (iii) responsiveness to workforce needs;
73d 
 (iv) institutional efficiency; and
73e 
 (v) for a research university, graduate research metrics.
 ←Ŝ
(c) The board shall:
(i) award performance funding appropriated by the Legislature to institutions based on
the institution's success in meeting the metrics described in Subsection (4)(b); and
(ii) reallocate funding that is not awarded to an institution under Subsection (4)(c)(i)
for distribution to other institutions that meet the metrics described in Subsection (4)(b).
[
(3)
] 
(5)
 (a) Institutional operating budgets shall be submitted to the board at least 90
days prior to the convening of the Legislature in accordance with procedures established by the
board.
(b) Funding requests pertaining to capital facilities and land purchases shall be
submitted in accordance with procedures prescribed by the State Building Board.
[
(4)
] 
(6)
 (a) The budget recommendations of the board shall be accompanied by full
explanations and supporting data.
(b) The appropriations recommended by the board shall be made with the dual
objective of:
(i) justifying for higher educational institutions appropriations consistent with their
needs, and consistent with the financial ability of the state; and
(ii) determining an equitable distribution of funds among the respective institutions in
accordance with the aims and objectives of the statewide master plan for higher education.
[
(5)
] 
(7)
 (a) The board shall request a hearing with the governor on the recommended
appropriations.
(b) After the governor delivers his budget message to the Legislature, the board shall
request hearings on the recommended appropriations with the appropriate committees of the
Legislature.
(c) If either the total amount of the state appropriations or its allocation among the
institutions as proposed by the Legislature or its committees is substantially different from the
recommendations of the board, the board may request further hearings with the Legislature or
its appropriate committees to reconsider both the total amount and the allocation.
[
(6)
] 
(8)
 The board may devise, establish, periodically review, and revise formulas for
its use and for the use of the governor and the committees of the Legislature in making
appropriation recommendations.
[
(7)
] 
(9)
 (a) The board shall recommend to each session of the Legislature the
minimum tuitions, resident and nonresident, for each institution which it considers necessary to
implement the budget recommendations.
(b) The board may fix the tuition, fees, and charges for each institution at levels it finds
necessary to meet budget requirements.
[
(8)
] 
(10)
 (a) Money allocated to each institution by legislative appropriation may be
budgeted in accordance with institutional work programs approved by the board, provided that
the expenditures funded by appropriations for each institution are kept within the
appropriations for the applicable period.
(b) A president 
of an institution
 shall:
(i) establish initiatives for the president's institution each year that are:
(A) aligned with the strategic priorities described in Subsection [
(2)
] 
(3)
; and
(B) consistent with the institution's mission and role; and
(ii) allocate the institution's mission based funding to the initiatives.
[
(9)
] 
(11)
 The dedicated credits, including revenues derived from tuitions, fees, federal
grants, and proceeds from sales received by the institutions are appropriated to the respective
institutions and used in accordance with institutional work programs.
[
(10)
] 
(12)
 Each institution may do its own purchasing, issue its own payrolls, and
handle its own financial affairs under the general supervision of the board.
[
(11)
] 
(13)
 (a) If the Legislature appropriates money in accordance with this section, it
shall be distributed to the [
State Board of Regents
] 
board
 and higher education institutions to
fund the items described in Subsection [
(1)
] 
(2)
(b).
(b) During each general session of the Legislature following a fiscal year in which the
Legislature provides an appropriation for mission based funding[
,
] 
or performance funding
 the
board and institutions shall report to the Legislature's Higher Education Appropriations
Subcommittee on the use of the previous year's mission based funding[
,
] 
and performance
funding,
 including performance outcomes relating to the strategic initiatives approved by the
board.
Legislative Review Note
 as of 2-19-15 7:46 AM
Office of Legislative Research and General Counsel