The Indiana Commission for Higher Education unanimously approved an updated formula for higher education funding for public universities across the state.

The Outcomes-Based Performance Funding formula was revised “to better prioritize student outcomes and strengthen the connection between higher education and the state’s talent needs,” according to a press release.

The formula would be in place for the next two fiscal years, and it applies to all four-year public institutions and Vincennes University for bachelor’s degrees.

Deputy Chief Financial Officer for Higher Education Cody Robison said after receiving feedback from stakeholders, the commission's goal was to make credential and degree completion the primary metric for funding, making the formula simpler to understand.

“The formula in its current form, the one that currently is live now, so to speak, it wasn't moving the needle for students in the way that we wanted it to,” Robison said. “It was complex and it was difficult to understand, which made it difficult to communicate about as well and to celebrate when institutions were doing well.”

The OBPF formula provides funding to public universities on a per-degree basis and will include additional funding opportunities across three state priorities – alignment, affordability and access.

Robison said the current formula favors other metrics that did not necessarily relate to student outcomes.

“One example of a metric that was in the old formula that is not currently in the new formula is enrollment,” he said. “So, the old formula did have enrollment metrics as part of it. This new formula does not.”

Affordability carries a 35% multiplier, access 25% and alignment 40%. Higher education institutions must fulfill at least one of the criteria listed under each priority to receive additional dollars.

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For sub-associate and associate degrees at Ivy Tech and Vincennes, the formula includes a 50% multiplier tied to alignment with high-demand fields and the workforce.

“They have a slightly different formula; they are our, you know, workforce engine of the state, so we've given greater weight to that alignment category for them,” Robison said.

A review of the OBPF formula is required by state law every two years.

The new OBPF formula will be presented to the State Budget Committee this fall for final approval.