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Meeting Minnesotas Talent

Challenge: MeasuringPerformance that Matters

Presented by

Dr. James L. ApplegateVice President, Lumina Foundation

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Goal 2025

To increase the percentage of

Americans who hold high-qualitycollege credentials to 60 percent by

2025.

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Minnesotas Economy Will

Demand Very High Talent Levels1. By 2018, 70% of Minnesotas jobs will

require postsecondary education (fifth

highest in the nation).2. By 2018, 620,000 of the projected 902,000

job openings will require postsecondary

credentials.

3. Overall job growth for college level jobs will

be more than double that for jobs not

requiring college

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Meeting Minnesotas Talent Needs: A

Nation Leading Effort

46

70

54

30

0

20

40

60

80

100

120

Current workforce 2018 workforce needed

Less than college

College prepared

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62

60

58

56

54

52

50

48

46

44

42

40

38

36

34

32

30

28

26

24

22

Canada/Japan

Korea

Massachusetts

Minnesota

North Dakota/Iowa/Connecticut

Colorado

New Hampshire/NebraskaSouth Dakota/Illinois/Pennsylvania/Vermont

Wisconsin/Washington/Hawaii

Virginia/Kansas/Rhode Island

Indiana/CA/DE/NC/MI/IDFlorida/Oregon/South Carolina/Maine

Wyoming/Georgia

Mississippi/AlabamaKY/TN/OK/AZ/AK/TX

New MexicoNevada

Louisiana/West Virginia

Arkansas

Ireland

FinlandNetherlands/Switzerland

Greece

Luxembourg

Poland/Chile

Germany

Sweden

Norway/New Zealand

France/Israel

Iceland

Hungary

Global Competitiveness

US states25 to 34 year olds

Missouri/Montana

New York

New JerseyMaryland United Kingdom/Australia

Belgium/United States

SpainEstonia/Denmark

Slovenia

Utah/Ohio

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Minnesota Must Meet the Demands of

a New Post-Recession Economy

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Creating an Effective Performance Funding

System: Rewarding What Matters for

Minnesotas Success

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Minnesotas Performance System

Must Reward Success with Adults

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Minnesotas Performance System

Must Reward Progress Toward Equity

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Source:

Minnesotas Performance System Must

Reward Closing Income Gaps

B.A. Rate by Age

24 (2010)

Young People from

Highest Income

Quartile79%

Young People from

Lowest Income

Quartile11%

Postsecondary Education Opportunity, Bachelors Degree Attainment by Age 24 by Family Income Quartiles, 1970 to 2008.

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Source:

Designing an Effective Performance Funding

System for MN: What Will it Take?

1. Design around an audacious state goal-

performance for what?

2. Engage all stakeholders

3. Set interim goals

4. Make it matter

5. Keep it simple and quantifiable

6. Consider institutional mission

7. Make it matter at the campus level

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Source:

Effective Performance Funding Systems

8. Focus on increases in number of

credentials

9. Reward progress and completion10.Connect to workforce success

11.Include quality/assess learning

12.Reward serving the underserved13.Build it into the funding formula

14.Phase changes in

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Changes to Consider in the Current

Performance Funding System

Current System

1. 1% at stake-Does it matter?

2. No Big Goal

3. Rewards small increases indegrees awarded

4. Rewards increases in minority

enrollment (only)

5. Includes 4/6 year graduation

rates

21st Century System

1. 5% to 25%

2. Focus on outcomes that

support a Big Goal

3. Tie increase targets tomeeting state GOAL

4. Include reductions in

completion gaps for low

income and minority students

5. Ensure all initially enrolledstudents are included in the

calculation (if used at all)

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Changes to Consider in the Current

Performance Funding System

Current System

6. No workforce outcomes

7. Targets R&D inputs

8. Rewards increases in

institutional aid

9. Rewards increases in on

line courses and

students

21st Century System

6. Include workforce

outcomes

7. Include R&D OUTPUTS8. Reward targeting of aid

and creation of student

completion incentives

9. Incent development ofnew lower cost delivery

systems

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Minnesotas Challenge-

Their Future: Performance Matters

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Going Deeper: Resources

1. National Conference of State Legislators (NCSL)-detailed summary of

performance funding activity across the 50 states

http://www.ncsl.org/issues-research/educ/performance-funding.aspx

2. Lumina supported site highlighting effective practices across the

country that are increasing higher education productivity. Includes

performance funding activity http://www.collegeproductivity.org/about

3. Southern Regional Education Boards (SREB) review of essential

state policy components of an effective performance funding system

http://publications.sreb.org/2012/Outcomes_Based_Funding.pdf

4. Recommendations for implementation of performance fundingin Wisconsin. Contains review of work in other states.

www.wiscape.wisc.edu/publications/

http://www.ncsl.org/issues-research/educ/performance-funding.aspxhttp://www.collegeproductivity.org/abouthttp://publications.sreb.org/2012/Outcomes_Based_Funding.pdfhttp://www.wiscape.wisc.edu/publications/http://www.wiscape.wisc.edu/publications/http://publications.sreb.org/2012/Outcomes_Based_Funding.pdfhttp://publications.sreb.org/2012/Outcomes_Based_Funding.pdfhttp://www.collegeproductivity.org/abouthttp://www.collegeproductivity.org/abouthttp://www.collegeproductivity.org/abouthttp://www.ncsl.org/issues-research/educ/performance-funding.aspxhttp://www.ncsl.org/issues-research/educ/performance-funding.aspxhttp://www.ncsl.org/issues-research/educ/performance-funding.aspxhttp://www.ncsl.org/issues-research/educ/performance-funding.aspxhttp://www.ncsl.org/issues-research/educ/performance-funding.aspx

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Going Deeper: Resources (2)

5. Center for Americas Progress review of performance funding in six

states highlighting effective practice

http://www.americanprogress.org/wp-

content/uploads/issues/2012/08/pdf/performance_funding.pdf

6. A succinct story about Indianas 7 performance metrics

http://stateimpact.npr.org/indiana/2011/12/09/the-seven-new-

benchmarks-for-funding-indiana-colleges/

7. Tennessees performance metrics on which they seek to base 80% of

their funding

http://www.state.tn.us/thec/Divisions/Fiscal/funding_formula/1-Outcomes%20Based%20Formula%20Narrative%20-

%20for%20website.pdf

http://www.americanprogress.org/wp-content/uploads/issues/2012/08/pdf/performance_funding.pdfhttp://www.americanprogress.org/wp-content/uploads/issues/2012/08/pdf/performance_funding.pdfhttp://stateimpact.npr.org/indiana/2011/12/09/the-seven-new-benchmarks-for-funding-indiana-colleges/http://stateimpact.npr.org/indiana/2011/12/09/the-seven-new-benchmarks-for-funding-indiana-colleges/http://www.state.tn.us/thec/Divisions/Fiscal/funding_formula/1-Outcomes%20Based%20Formula%20Narrative%20-%20for%20website.pdfhttp://www.state.tn.us/thec/Divisions/Fiscal/funding_formula/1-Outcomes%20Based%20Formula%20Narrative%20-%20for%20website.pdfhttp://www.state.tn.us/thec/Divisions/Fiscal/funding_formula/1-Outcomes%20Based%20Formula%20Narrative%20-%20for%20website.pdfhttp://www.state.tn.us/thec/Divisions/Fiscal/funding_formula/1-Outcomes%20Based%20Formula%20Narrative%20-%20for%20website.pdfhttp://www.state.tn.us/thec/Divisions/Fiscal/funding_formula/1-Outcomes%20Based%20Formula%20Narrative%20-%20for%20website.pdfhttp://www.state.tn.us/thec/Divisions/Fiscal/funding_formula/1-Outcomes%20Based%20Formula%20Narrative%20-%20for%20website.pdfhttp://www.state.tn.us/thec/Divisions/Fiscal/funding_formula/1-Outcomes%20Based%20Formula%20Narrative%20-%20for%20website.pdfhttp://www.state.tn.us/thec/Divisions/Fiscal/funding_formula/1-Outcomes%20Based%20Formula%20Narrative%20-%20for%20website.pdfhttp://www.state.tn.us/thec/Divisions/Fiscal/funding_formula/1-Outcomes%20Based%20Formula%20Narrative%20-%20for%20website.pdfhttp://stateimpact.npr.org/indiana/2011/12/09/the-seven-new-benchmarks-for-funding-indiana-colleges/http://stateimpact.npr.org/indiana/2011/12/09/the-seven-new-benchmarks-for-funding-indiana-colleges/http://stateimpact.npr.org/indiana/2011/12/09/the-seven-new-benchmarks-for-funding-indiana-colleges/http://stateimpact.npr.org/indiana/2011/12/09/the-seven-new-benchmarks-for-funding-indiana-colleges/http://stateimpact.npr.org/indiana/2011/12/09/the-seven-new-benchmarks-for-funding-indiana-colleges/http://stateimpact.npr.org/indiana/2011/12/09/the-seven-new-benchmarks-for-funding-indiana-colleges/http://stateimpact.npr.org/indiana/2011/12/09/the-seven-new-benchmarks-for-funding-indiana-colleges/http://stateimpact.npr.org/indiana/2011/12/09/the-seven-new-benchmarks-for-funding-indiana-colleges/http://stateimpact.npr.org/indiana/2011/12/09/the-seven-new-benchmarks-for-funding-indiana-colleges/http://stateimpact.npr.org/indiana/2011/12/09/the-seven-new-benchmarks-for-funding-indiana-colleges/http://stateimpact.npr.org/indiana/2011/12/09/the-seven-new-benchmarks-for-funding-indiana-colleges/http://stateimpact.npr.org/indiana/2011/12/09/the-seven-new-benchmarks-for-funding-indiana-colleges/http://stateimpact.npr.org/indiana/2011/12/09/the-seven-new-benchmarks-for-funding-indiana-colleges/http://stateimpact.npr.org/indiana/2011/12/09/the-seven-new-benchmarks-for-funding-indiana-colleges/http://stateimpact.npr.org/indiana/2011/12/09/the-seven-new-benchmarks-for-funding-indiana-colleges/http://www.americanprogress.org/wp-content/uploads/issues/2012/08/pdf/performance_funding.pdfhttp://www.americanprogress.org/wp-content/uploads/issues/2012/08/pdf/performance_funding.pdfhttp://www.americanprogress.org/wp-content/uploads/issues/2012/08/pdf/performance_funding.pdf