FOR IMMEDIATE RELEASE
Governor Hutchinson Applauds Approval of Higher Education Productivity Funding Formula
Calls the New Model a Historic Shift in Funding Higher Education
LITTLE ROCK – The approval of the Higher Education Productivity Funding Formula makes Arkansas one of only three states that has adopted a productivity funding formula for both 2-year colleges and 4-year universities, Governor Asa Hutchinson said today after the Arkansas Higher Education Coordinating Board approved the final proposal.
The Higher Education Productivity Funding Formula emphasizes student success, accountability and program completion, unlike the previous funding model, which was based primarily on student enrollment.
“I am grateful for the cooperation and energy that went into making this new funding model a reality,” Governor Hutchinson said. “The productivity funding formula is an important step towards achieving my long-range goal of increasing the percentage of Arkansans who attain post-secondary degrees by approximately 20 percent by 2025.
“By shifting the focus from student enrollment to student progression and accomplishment, we create a positive incentive for colleges and universities to encourage more students to complete their courses of study and for institutions to be more efficient in their operations.”
Arkansas’ new formula for funding state colleges and universities will further increase the percentage of Arkansans who are workforce-ready and equipped with degrees and industry-recognized certificates. This productivity model, which has been developed over a two-year period, has received overwhelming support from the Arkansas Legislature and state colleges and universities. The governor signed Act 148 of 2017 into law in February.
Governor Hutchinson also committed an additional $10 million to higher education funding. This will be the first time since 2005 that there has been a substantial increase in state funding for higher education. The $10 million will be distributed to colleges and universities based on their productivity under the new formula.
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