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Performance Funding for 2010–2011 Higher than Expected, Werner Announces

As I mentioned to those able to attend this morning’s Open Forum, we’ve gotten some good news: IUP is to receive $5,052,290 in performance funding from the Pennsylvania State System of Higher Education for the 2010-2011 fiscal year. In comparison, the university received $2,975,619 for 2009–2010.

First, I want to congratulate and thank all of you as members of the university community for your hard work during the most recent academic year—the time period on which the university’s performance was judged.

On the basis of its 2009–2010 performance, IUP met or exceeded standards on 41 of 48 measures and submeasures, including degrees awarded, second-year persistence, graduation rates, faculty productivity, employee diversity, instructional cost, and faculty terminal degrees. In contrast, for 2008–2009, IUP met or exceeded performance standards on 35 of the same 48 measures and submeasures.

In planning the 2010–2011 budget, based on historical data, we projected that IUP would receive $2.9 million in performance funding. The difference between our original budget projection and the allocated amount will be examined very closely, so that we can determine how best to serve the university’s priorities. There are many options for the use of this $2.15 million, including paying off university debts or allocating the money to the university’s reserve funds to bring the percentage of funds currently in reserve more in line with Council of Trustees policy. We plan to explore all the options.

It is important to note that this year’s performance funding total reflects a transition to a new formula for funding allocation being developed by the State System. We must be cautious about projecting next year’s performance funding level in our budget planning, because the performance funding formula will, once again, be significantly different.

David Werner
Interim President

A Note from PASSHE about Performance Funding: The State System’s Board of Governors established the performance funding program in July 2000. The System was one of the first public university systems in the nation to offer performance funding, and the current level of funding is among the highest percentages being provided. Since the program began, virtually all of the universities have improved their graduation and retention rates; have increased student, faculty, and staff diversity; and have improved their operating efficiency.

Posted on 10/1/2010 3:06:33 PM

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