AR SB766

Repeals separate funding formula provisions for the Arkansas Higher Education Coordinating Board and Department of Higher Education, consolidating funding formula development authority.

Establishes outcome-centered funding formula model to be developed by December 31, 2011, focusing on course completion, degree completion, critical needs shortage areas, minority students, economically disadvantaged students, and nontraditional students.

Implements phased transition for universities and two-year colleges to outcome-based funding starting in 2013-2014 school year, increasing from 5% to 25% of total funding by 2017-2018 school year.

Protects institutions from dramatic funding reductions by limiting state funding cuts to no more than 2% annually regardless of formula changes.

Declares an emergency effective immediately to ensure fair allocation of limited financial resources for state-supported institutions during the 2012-2013 academic year.