1. Transforming The Pennsylvania State System of Higher Education Through Performance Funding Robert M. Smith Slippery Rock University

2. Student Success – Degrees Awarded # – Second Year Persistence # – Graduation Rates* # Enrollment – Distance Education – Internships – New Pennsylvania Community College Transfers Institutional Development – Accreditation – PRAXIS Aggregate Passing Rates* Fiscal Development – Faculty Productivity # – Degree Programs with Few Graduates – Personnel Ratio – Private Support # – Instructional Cost Diversity – Diversity of Entering Class – Enrollment Diversity – Employee Diversity # – Faculty Terminal Degree # Performance Measures 2001 - 2011 # Performance Funded Measures *Outcome Measures

3. Themes Success of our students Aligning with national and state agenda for higher education Access to opportunity Adding value for underserved populations Preparing students to enter a global work force Stewardship Transforming physical, financial, and human resources Conceptual Overview for 2012-17 Plan

4. Program Principles Clear, understandable, replicable Focus on results Transparency and visibility of data Universities may distinguish themselves Reduce competition/foster collaboration Align with System and University strategic directions and policies Align with national accountability efforts Conceptual Overview for 2012-17 Plan

5. Groups I: Mandatory II: Pick 3–5 At least 1 Stewardship III: University- specific Up to 2 Student Success 2 Choose 0–4 Access 2 Choose 0–4 Stewardship 1 Choose 1–4 Universities develop 0–2 indicators

6. Group I: Mandatory Increase the Number of Degrees Conferred Number of associate, baccalaureate, and graduate degrees conferred (.50) Baccalaureate degrees awarded per FTE undergraduate enrollment (.50) Closing the Achievement Gaps Closing the Achievement Gap for Pell Recipients (.50) Closing the Achievement Gap for Underrepresented Minority (URM) Students (.50) Group II: Universities can select from the following Deep Learning Scale Results—National Survey of Student Engagement (NSSE) Senior Survey—National Survey of Student Engagement (NSSE) Student Persistence—Third and fourth years Value-Added—Senior CLA, CAAP, or ETS® Proficiency Profile ScoresETS® Proficiency Profile STEM Degree Recipients—Includes health degrees Performance Indicators: Success

7. Group I: Mandatory Closing the Access Gaps Closing the Gap for Pell Recipients (.50) Closing the Gap for Underrepresented Minority (URM) Students (.50) Faculty Diversity Percent of full-time tenure/tenure-track faculty who are nonmajority persons (.50) Percent of full-time tenured faculty who are female (.50) Group II: Universities can select from the following Faculty Career Advancement Employment (Nonfaculty) Diversity Student Experience with Diversity and Inclusion—Average of the combined scores on applicable NSSE items Student Diversity Performance Indicators: Performance Indicators: Access

8. Performance Indicators: Stewardship Group I: Mandatory Private Support—Three-year average of total dollars raised Group II: Universities must select at least one from the following Facilities Investment—Composite measure of commitment to physical plant, as measured by the annual Sightlines’ Return on Physical Assets (ROPA) Study Administrative Expenditures as Percent of Cost of Education Credit-Hour Productivity—Student credit hours as ratio of total FTE faculty Employee Productivity—FTE student/FTE employee (faculty and staff)

9. Optional; no more than two Developed and proposed by University Derived from University’s strategic plan Element of risk External comparative base from national data source Quantifiable results Approved by Chancellor Performance Indicators: University-Specific

10. December 2002 Declared “the worst performing university in the State System.” 2011 Highest performing university in the State System (based on standards met). The Slippery Rock University Story: 2002-2011

11. Key steps to success: Key steps to success: Conscript the entire university to performance (embed in culture) Compel data driven decision-making Leverage budget allocations around performance results Implement internal incentives for recurring Implement one-time funding for outcome-based initiatives The Slippery Rock University Story: 2002-2011

12. Benefits of success: Benefits of success: Revenue based on performance (allowed us to shift to quality over quantity) Happy faculty and staff (know how to “grow” resources and can make own strategic decisions) Happy students (focused on quality of education and their success) Astonished accreditors (assessment and outcome measures) The Slippery Rock University Story: 2002-2011

13. finis