Pennsylvania House Republican Leader Jesse Topper announced that the Performance-Based Funding Council has unanimously adopted a report with recommendations for creating a performance-based funding model. This model will be applied to new funding for Penn State University, the University of Pittsburgh, and Temple University.
The council, chaired by Topper, was established under Act 90 of 2024 and began its meetings in January 2025. Hearings were conducted in Harrisburg and at each of the universities involved.
“I want to thank the members of the Performance-Based Funding Council, as well as those who provided input into the process of developing this report and associated recommendations,” said Topper. “This report and recommendations provide a path toward additional accountability for three of the largest schools receiving state support while ensuring a sustainable way of measuring performance and related funding going into the future.”
The council’s recommendations include making it a permanent body to oversee the performance-based funding model. The model is set to apply to new funds starting in fiscal year 2026-27, using existing funds as a base allocation and providing institutional advancement funding in fiscal year 2025-26.
Performance allocations for each university will be determined based on fixed amounts and each institution’s share of the total weighted student count. This count considers undergraduate enrollments, progression at 60 credits, Pell-eligible students, students from low-matriculating high schools, community college transfers, and degrees awarded in high-priority occupations.
Further evaluation criteria include four-year graduation rates, six-year graduation rates, six-year Pell-eligible graduation rates, degrees in high-priority occupations, college affordability incentives, and rewarding improvements.
Following the adoption of this report, legislation will be drafted based on these recommendations for consideration by the General Assembly.
