HB1348: Update Outcomes-Based Funding to Reward High-Demand Job Programs

TN Gen. Assy Bill: HB1348

Sponsor: Haston

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Bill Summary

Review Cycle: Requires the commission to review and update the outcomes-based funding formula model at least once every five years.
Funding Incentives: Aims to incentivize institutions that offer programs leading to job placement in high-demand fields within the state.
Legislative Amendment: 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 demands, which could be challenging to maintain and interpret effectively.

Impacted Programs

Vanderbilt’s Career Center may need to enhance its collaboration with industry partners to ensure that programs align with job market demands and provide students with relevant skills and opportunities.
Academic departments offering programs in high-demand fields, such as engineering, computer science, and healthcare, may see increased enrollment and funding opportunities, necessitating expansion and resource allocation.
The Office of Institutional Research will play a crucial role in gathering and analyzing data to inform the university’s response to changes in the funding formula and job market trends.
Programs not directly aligned with high-demand fields may need to demonstrate their value in other ways, such as through interdisciplinary collaboration or contributions to the university’s mission and values.

Financial Impact

The outcomes-based funding model could lead to increased financial support for programs that align with state job market needs, potentially enhancing Vanderbilt’s ability to attract and retain students in these areas.
Conversely, programs not aligned with high-demand fields may face reduced funding, requiring strategic adjustments to maintain their viability and contribution to the university’s overall mission.
Vanderbilt may need to invest in infrastructure and faculty development to support the growth of programs in high-demand fields, impacting budget allocations and long-term financial planning.
There may be opportunities for Vanderbilt to secure additional funding through state incentives for programs that successfully place graduates in high-demand jobs, enhancing the university’s financial stability and reputation.

Relevance Score: 3 (The bill presents moderate risks involving compliance and strategic adjustments to align with state 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 could impact the university’s recruitment strategies and financial aid offerings, particularly for students with artistic talents.
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 aligning with state-level governance and maintaining influence in higher education policy.
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, the university 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 that support and attract students excelling in spoken word poetry. This could enhance the university’s reputation in the arts and attract a diverse student body.
The expanded authority of the Tennessee Higher Education Commission’s executive director presents an opportunity for Vanderbilt’s Government Relations Office to strengthen its engagement with state education leaders. By fostering relationships, the university can influence policy decisions that affect higher education in Tennessee.
Vanderbilt can leverage the focus on non-degree credentials by expanding its offerings in technical skills and certifications. This aligns with the state’s emphasis on quality non-degree credentials and can attract students seeking practical, career-oriented education.

Relevance Score: 3 (Some adjustments are needed to processes or procedures to align with new scholarship opportunities and changes in state higher education governance.)

Average Relevance Score: 2.2

Timeline for Implementation

Every five years: The commission must review and update the outcomes-based funding formula model at least once every five years.

Relevance Score: 1

Impacted Government Organizations

Tennessee Higher Education Commission: This commission is tasked with reviewing and updating the outcomes-based funding formula for higher education, directly impacting its regulatory role in incentivizing institutions to offer programs aligned with high-demand job fields.

Relevance Score: 1 (Only one key government agency is impacted by this legislation.)

Responsible Officials

The Commission – Tasked with reviewing and updating the outcomes-based funding formula model every five years to incentivize programs that lead to job placement in high-demand fields.

Relevance Score: 3 (Directives affect directors of agencies responsible for higher education funding policy oversight.)