Region’s colleges to see money boost

FORT SMITH — Eight of 10 state universities are recommended to receive financial boosts because of gains in their productivity index, a measure now in its third year aiming to reward schools based on criteria including credentials awarded.

The biggest winner for fiscal 2021 in terms of the largest recommended increase is the University of Arkansas. The state’s largest university is set to receive $2.3 million more, or about 37% of the $6.3 million in productivity index money for distribution to public universities.

In all, $8.47 million in productivity money was approved Friday by the Higher Education Coordinating Board, including $2.2 million for the state’s two-year colleges. The board voted during a meeting at the University of Arkansas-Fort Smith.

“Overall productivity of the institutions increased by 1.52% for this year’s calculations, resulting in an additional $8.4 million being recommended for distribution,” Nick Fuller, deputy director for the Division of Higher Education, told the board. He said three years worth of data are used in the productivity index calculations.

To be paid, the distributions must be approved by lawmakers and Gov. Asa Hutchinson, a champion of performance-based money for higher education. A state contribution of about $3.1 million in “new general revenue funds” is being requested according to documents presented by the Division of Higher Education.

The productivity money remains small compared to Revenue Stabilization Act money for public colleges and universities, which is

forecast to be $558.1 million for fiscal 2021. The act functions as a balanced budget bill.

Losses are capped at 1.5% in recommendations for 2021, the percentage calculated from a school’s base money the previous year.

No universities saw large enough declines in productivity index to hit the cap.

But among the state’s 22 two-year colleges, 14 schools saw declines, including 11 reaching the cap for maximum losses. UA-Pulaski Tech, for example, is recommended to lose $224,791 from its RSA money last year of $15 million.

Schools described how the productivity index worked for or against them in the most recent recommendations.

UAFS saw a decline in its index resulting in a recommendation of a loss of $227,568.

“Our overall credentials

increased from the previous year, but within the mix of the three separate multipliers used by the ADHE, we were down in some of the higher-multiplier areas,” said Rachel Putman, a UAFS spokeswoman.

The state’s productivity index not only factors in the number of credentials awarded, but also gives extra credit if credentials awarded are in certain disciplines, including science, technology, engineering and mathematics and also what are considered “high demand” areas.

Putman also cited other reasons for the school’s decline in the productivity index, including changes from year-to-year that didn’t match past accomplishments in ontime completion, for example.

The only other university recommended to lose funding is Henderson State University in Arkadelphia, which is recommended to lose $16,758.

UA spokesman Mark Rushing said the university has gained money in all three years the index has been

used, including a $1.2 million increase to its base appropriation in 2019 and $1.8 million in 2020, the same year UA also received $1.5 million in one-time money as part of the productivity allocations.

“The university’s increased number of degrees awarded in academic year 2018, particularly in STEM fields, is the largest driver of the university’s productivity increase for the latest funding cycle,” Rushing said in an email.

Along with UA, one other university and also a two-year college are recommended to receive more than a $1 million in productivity money in 2021.

Southern Arkansas University in Magnolia is recommended to receive a boost of $1.2 million.

Along with a general increase in credentials awarded, “the fact that many new graduates have been in the STEM field as well as at the graduate level has also helped SAU in the funding formula,” Caleigh Moyer, a university spokeswoman, said.

Productivity allocations carry over into future years up to a cap of 2% of a school’s Revenue Stabilization Act money for the previous year. The recommended $1.2 million boost to Southern Arkansas, however, exceeds the 2% cap, meaning $882,704 would be paid out as one-time “incentive funding.” “Incentive” money gets redistributed yearly.

Northwest Arkansas Community College in Bentonville — the state’s largest two-year college — is recommended to receive a $1.4 million boost, including about $1.2 million in “incentive” money.

Lisa Anderson, college spokeswoman, said the college was approved to receive $787,056 in productivity allocations in fiscal 2020, including one-timemoney.

The college is “placing greater focus on meeting students where they are and keeping them on track for graduation,” referring to a college-wide effort “focusing on student retention and success,” Anderson said.