Iowa Board of Regents’ funding proposal should be adopted

The Iowa Legislature is considering appropriations to the three regent's universities for the fiscal year that begins July 1. Included in the debate is the most significant change in the regents' approach to funding in perhaps 70 years.

It's called performance-based funding, and it's important to students, parents, faculty and staff members and all taxpayers of Iowa. The Board of Regents adopted the plan in June 2014 and made it the framework for their appropriations request.

Traditionally, the largest allocation of state funds has been to the University of Iowa, with Iowa State University second and the University of Northern Iowa third. In fact, this fiscal year, the percentages are 46 percent to UI, 36 percent to Iowa State and 18 percent to UNI. The actual dollar allocations really illustrate the inequity of the current system. The general operating appropriations are: $230.9 million for UI; $180.9 million for Iowa State; and $93.2 million for UNI. This is despite the fact that more Iowa students go to Iowa State and nearly 90 percent of the UNI student body is made up of Iowans.

Performance-based funding is a significant change. For decades, the regents have requested funds on a 'base-plus” method. That means if the legislature appropriates more money, a uniform percentage is added to the funding for the UI, Iowa State University and UNI. This makes an inequitable situation worse.

Look at it from a funding-per-resident-student basis: a resident student who attends Iowa State receives approximately $5,000 less in state support than one who attends the UI. A resident student at UNI receives even less, about $5,700. (Source: Board of Regents)

UNI's enrollment is nearly 90 percent resident students, so the university has not been able to benefit financially from a larger number of out-of-state students.

Iowa State is growing. The school's enrollment is up more than 30 percent in the last seven years. It educates the largest number of resident students - 20,260 - among the three universities. To maintain high quality and meet students' needs, Iowa State is hiring additional faculty, expanding classroom and laboratory hours, adding research facilities and housing.

The performance-based funding plan calls for allocating funds to the Regent universities based on the following:

' Resident enrollment, 60 percent

' Student progress and attainment, 15 percent

' Access for low-income and minority students, 10 percent

' Sponsored research, 5 percent

' Graduate and professional students, 5 percent

' Other selected metrics, 5 percent

Performance-based funding would benefit both Iowa State and UNI, and would recognize, rather than penalize, our growth and percentage of Iowa students. And, for the first time, it would show the taxpayers of Iowa why various allocations are made to each Regent university. Performance-based funding is a long-term solution to a decades-old funding inequity and places all three universities on a path to success by aligning variable costs with variable revenues.

Let's be clear: the Regents didn't adopt performance-based funding to reward or penalize any university. Because application of the plan would shift more money to UNI and Iowa State, the board requested appropriations to keep the UI whole in the first year. This plan is sensible, and it's transparent, giving taxpayers a clear picture of how their dollars are being appropriated among the three universities. Over time the funds would clearly track the factors Iowans consider important. In addition - unlike under the current funding model - the board will review performance-based funding annually and adjust the formula based on any unintended consequences or arising market conditions.

In the nearly one year since the Board of Regents adopted the plan, objections have been raised, but no one should be against linking funding to performance. It would be irresponsible to do otherwise. To have Iowa tax money follow Iowa students is the right thing to do.

It's helpful to recall the words of the five-member task force that spent nearly one year analyzing the funding issue and preparing recommendations to the regents last year:

'Presently, the board is perpetuating the priorities of yesterday rather than funding the priorities of today and tomorrow.”

We appreciate the strong leadership provided by the Board of Regents in advocating for performance-based funding and the recent statement of support from Governor Branstad. We look forward to continuing to work with the General Assembly and the governor to ensure the adoption of performance-based funding.

Performance-based funding is important for students and their families; it's important for the taxpayers who pay the bill. It deserves the support of the Iowa Legislature.

Please join us in reaching out to the Iowa Legislature and call your senator or representative, asking for their support of performance-based funding. We want to continue to make Iowa State and UNI affordable and accessible for Iowa families.

' Bill Ruud is president of the University of Northern Iowa. Steve Leath is president of Iowa State University. Comments: bill.ruud@uni.edu; sleath@iastate.edu