HUNTINGTON, W.Va. — Marshall University Board of Governors approved a plan Tuesday that will impact how one-third of the university’s annual funding will be determined during the next five years.
Higher education in West Virginia is going to a outcomes-based funding formula model as approved by state lawmakers earlier this year. Under the formula, 30% of the annual general revenue a college or university receives in the state budget can shift up or down depending on how the individual schools do in certain areas of performance. Marshall and the state’s other higher education schools are submitting what are described as mission weights.
Marshall President Brad Smith said Tuesday the mission weights will match Marshall’s strengths over the next five years.
“We want to achieve both the best outcomes for our students and our state and our university,” Smith told BOG members.
Marshall believes its strengths will be in the number of bachelor and associate degrees earned during the five year period. The document also marks research and development as a priority.
“The headline here is this is a mission-based weighting and we think optimizes what the state is seeking and what Marshall University is prepared to deliver,” Smith said. “We feel very good about the outcomes.”
Marshall BOG Chair Patrick Farrell called the outcomes-based funding formula Tuesday a positive step for all of higher education.
“It’s an exciting time for West Virginia higher education,” Farrell said.
All of the state’s colleges and universities are expected to have their mission weight documents submitted to the state Higher Education Policy Commission within a few weeks. An emergency rule from the HEPC governing the program is already in effect.
As mentioned, 30% of a school’s allocation will be linked to the funding formula. Each college and university will receive points each year for the number of degrees completed, etc. It will receive bonus points for having graduates in focused areas that would significantly impact the state’s economy. Schools will also get bonus points for graduating students that are considered high-risk.
The funding formula includes several safeguards. There’s an adjustment tool for inflation, points earned are determined on a three-year rolling average and no school’s funding can be decreased by more than 5% in any one year.