AR HB1209

The Arkansas Higher Education Coordinating Board shall adopt a productivity-based funding model for state-supported institutions of higher education with separate policies for two-year and four-year institutions.

The funding model must include measures for effectiveness, affordability, and efficiency addressing student completion, progression, on-time degree completion, institutional collaboration, serving underrepresented students, and producing graduates in science, technology, engineering, mathematics, and high-demand fields.

The Department of Higher Education shall reserve any funds unallocated due to productivity declines to address statewide higher education needs, and shall review the policies every 5 years.

If aggregate general revenue funding for higher education is more than 2% less than the prior fiscal year, the department shall not implement the productivity-based funding model until the following fiscal year.

Repeals previous funding formula statutes (§§ 6-61-210, 6-61-224, 6-61-228, 6-61-229, 6-61-230, and 6-61-233) that established needs-based and outcome-centered funding components for universities and two-year colleges.