SB1340: Update Outcomes-Based Funding to Reward High-Demand Job Programs

TN Gen. Assy Bill: SB1340

Sponsor: Powers

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Bill Summary

Commission Review: Mandates the commission to review and update the outcomes-based funding formula model at least once every five years.
Incentive Focus: Aims to incentivize higher education institutions that offer programs leading to job placements in high-demand fields within the state.
Legislative Amendments: Amends provisions in TCA Title 9, Title 49, and Title 62.

Risks & Considerations

The requirement to review and update the outcomes-based funding formula model every five years introduces a dynamic element to funding, which could lead to fluctuations in financial planning for Vanderbilt University. This may necessitate more frequent adjustments in budgeting and strategic planning.
Incentivizing programs that lead to job placement in high-demand fields could shift the focus of educational institutions towards these areas, potentially at the expense of other programs. This could impact the diversity of academic offerings and research initiatives at Vanderbilt.
There is a risk that the emphasis on high-demand fields might not align with the university’s current strengths or strategic priorities, requiring a reevaluation of program offerings and faculty expertise.
The implementation of this policy depends on accurate and timely data regarding job market trends and demands. Any discrepancies or delays in this data could affect the effectiveness of the funding model and the university’s ability to respond appropriately.

Impacted Programs

Vanderbilt’s Career Center may need to enhance its services to ensure that students are well-prepared for job placement in high-demand fields, aligning with the new funding incentives.
Academic departments offering programs in high-demand fields, such as engineering, computer science, and healthcare, might see increased enrollment and resource allocation, potentially leading to growth and expansion opportunities.
The Office of Institutional Research will play a crucial role in analyzing job market data and aligning academic offerings with state demands to maximize funding opportunities.
Programs not directly aligned with high-demand fields may need to demonstrate their value in other ways, such as through interdisciplinary research or community engagement, to maintain their relevance and funding.

Financial Impact

The outcomes-based funding model could lead to increased financial support for programs that align with high-demand fields, potentially enhancing Vanderbilt’s ability to attract top faculty and students in these areas.
Conversely, programs not aligned with high-demand fields may face financial challenges, requiring innovative approaches to funding and resource allocation.
Vanderbilt may need to invest in infrastructure and resources to support the growth of programs in high-demand fields, which could have significant budgetary implications.
There may be opportunities for Vanderbilt to secure additional funding through partnerships with industry and government agencies focused on workforce development in high-demand areas.

Relevance Score: 3 (The bill presents moderate risks involving compliance and strategic alignment with state funding priorities.)

Key Actions

Vanderbilt’s Financial Aid Office should evaluate the implications of the “Speak UP, Tennessee Scholarship Act” which provides scholarships for students demonstrating artistic excellence in spoken word poetry. This evaluation will help in aligning Vanderbilt’s scholarship offerings and outreach efforts to attract talented students in this field.
The Tennessee Higher Education Commission changes, including the addition of the executive director to the selection process for chief executive officers, should be monitored by Vanderbilt’s administration. Understanding these changes will be crucial for strategic planning and leadership appointments within the university.
Vanderbilt’s Office of Institutional Research should prepare to contribute to the required reports on tuition discounts and waivers. By providing comprehensive data and analysis, Vanderbilt can ensure its interests are represented in state evaluations of financial support and student outcomes.

Opportunities

The introduction of the “Speak UP, Tennessee Scholarship Act” offers an opportunity for Vanderbilt’s Department of English and Creative Writing to develop programs and workshops that support spoken word poetry. This could enhance the university’s reputation as a leader in the arts and attract prospective students interested in this discipline.
The expanded authority of the Tennessee Higher Education Commission presents an opportunity for Vanderbilt’s Leadership to engage with state education officials. By fostering strong relationships, Vanderbilt can influence policy decisions and advocate for initiatives that benefit the university and its students.

Relevance Score: 3 (Some adjustments are needed to processes or procedures due to changes in scholarship opportunities and administrative processes.)

Average Relevance Score: 2.4

Timeline for Implementation

Every 5 years: The commission is required to review and update the outcomes‐based funding formula model.

This recurring timeline of five years significantly exceeds 180 days, indicating a non-urgent compliance cycle.

Relevance Score: 1

Impacted Government Organizations

Tennessee Higher Education Commission: This legislation mandates that the state commission—which, in context, refers to the commission overseeing higher education funding—review and update the outcomes-based funding formula model. This directly impacts the commission’s functions and responsibilities related to higher education policy and funding.

Relevance Score: 1 (Only one government organization is directly impacted by this legislation.)

Responsible Officials

State Higher Education Commission – This commission is tasked with reviewing and updating the outcomes-based funding formula every five years, thereby overseeing the incentive framework for institutions offering job-aligned programs.

Relevance Score: 4 (This directive targets an agency-level body whose leadership is responsible for implementing significant funding formula revisions.)