Regents, presidents ask Iowa lawmakers to support new funding metrics

IOWA CITY - In a letter to the Iowa General Assembly, Board of Regents representatives and presidents from Iowa's public universities on Monday asked lawmakers to support new enrollment- and performance-based funding metrics by providing more money to minimize the expected impact on University of Iowa.

'The board requests the Iowa Legislature serve as a partner in the transition to performance based funding by providing supplemental funding,” according to the letter. 'We, the board and the university presidents, believe this new model is equitable and transparent while demonstrating accountability to the legislature, governor, and citizens of Iowa.”

Over the summer, the Board of Regents approved the new enrollment- and performance-based funding metrics that will tie 60 percent of state allocations to the universities to resident enrollment, 5 percent to graduate and professional enrollment, and 35 percent to performance measures - like progress and degree attainment, access, and sponsored research.

According to Monday's letter, the new model abandons the long-standing practice of doling out state support to UI, Iowa State University and University of Northern Iowa based simply on the previous year's funding totals - a practice that is 'outdated and no longer serves institutions or the taxpayers.”

'This model provides equity across the universities and creates a direct link between state taxpayer dollars and Iowa students,” board representatives and university presidents wrote in the letter.

Under the new formula, based on current enrollment totals, UNI would receive an additional $23.6 million, ISU would get an additional $22.8 million, and UI would lose $46.5 million. To minimize that hit to UI, the board voted to cap the amount of money that can move from one university to another at 2 percent of the UI's general education revenues for the first three years.

With that cap, UI would lose $12.9 million in the upcoming budget year, but the regents agreed in September to ask lawmakers to cover that loss, in addition to providing a 1.75 percent inflationary increase in appropriations.

Supporters of the new funding model say it appropriately uses taxpayer dollars to educate Iowans and rewards universities for doing so. They say it also addresses funding issues at UNI and more closely ties state allocations to regent goals.

Critics have said the model doesn't take into account differences at the universities, including the fact that it costs more to educate graduate and professional students. They also say the model will increase competition between the universities for a shrinking pool of Iowa applicants and discourage universities from recruiting out-of-state students, which they say benefit the state economically and socially.

Emails obtained and reviewed by The Gazette earlier this month revealed heated debate behind the scenes over how to define the enrollment and performance metrics. One originally-proposed definition for professional students would have taken less money from UI, but the board office changed it after outcry from both ISU and UNI administrators.

Some board members have called on the regents to slow down the process, and several lawmakers have raised questions about the model, stressing that they are the ones who get to decide how money is distributed.

Meanwhile, a majority of regents last week expressed support for an unprecedented third straight tuition freeze for in-state undergraduates. They also discussed the possibility of freezing tuition for out-of-state and graduate students.

Board members said any tuition freeze hinges on support from the Legislature.