Incentivizing Success: Outcomes-Based Funding
The Louisiana Talent Imperative will continue to direct state dollars toward developing the talent we value and need. The Board of Regents currently uses an outcomes-based funding formula to target state funding toward improving student success. While the funding formula’s overall distribution is a combination of the prior- year funding base, course delivery costs, and outcomes, a significant emphasis is placed on success in Louisiana’s higher education priorities. The metrics driving the formula support the role, scope, and mission of each institution, while the formula as a whole incentivizes performance as measured by student progression and completion, workforce development, and research innovation. Additionally, the formula rewards completion of low-income students, adults 25 and older, and underrepresented minorities. A new Master Plan signals an opportunity to affirm, modify, and update the funding formula and metrics as needed, to ensure it properly incentivizes the goals and values of the Master Plan, including equity, innovation, and student success.