Board of Regents approves performance-based funding formula for colleges

State funding to Great Basin and Western Nevada colleges would dwindle by a third if lawmakers support the Board of Regents' recommended budget using a new performance-based formula, starting in 2013.

Under a proposed two-year budget, college funding wouldn't be determined by simply counting the number of students enrolled in courses. It would be based on the number of students who successfully complete courses, looking at colleges' output instead of input. And funding would vary for courses, giving more money for classes that cost more to offer, such as science and technology.

Chancellor Dan Klaich created the formula and asserted it brings "transparency and equity" despite colleges' resistance.

"This hasn't been a friend-making project," said Klaich at Friday's Board of Regents meeting. He said that schools receiving more money under the budget have contended it's not enough, and those receiving less "feel they have been slighted."

Gov. Brian Sandoval has said the new budget would remain flat. The formula would just re-slice the pie.

About $13.2 million would be cut from four colleges and given instead to University of Nevada, Las Vegas; College of Southern Nevada; and Nevada State College. CSN would receive much of that money, increasing its funding by
$7 million.

While University of Nevada, Reno's funding cut would have little effect, being a 1 percent cut of $1.3 million, the three Northern Nevada community colleges would see considerably smaller slices. Great Basin would receive
$9.5 million compared with $14 million in 2011-12.

Western Nevada College would receive $10.5 million, down from $15 million. And Truckee Meadows Community College would get 9 percent less at $27.7 million, down from $30.6 million.

"There aren't too many happy campers out there," said Regent Kevin Melcher, who represents 11 rural counties constituting 80 percent of the state's land area, but a small portion of the population. "I encourage you all to work together, and we'll get through this."

But the regents also recommended, in their 12-1 vote, that the state kick in an extra $5 million in one-time funding from the general fund to lessen the blow to the three northern community colleges.

"We're making a major change here and making it in a hurry," Melcher said, advocating that regents ask the state for even more in one-time funding to ease the transition.

If the state provides the extra $5 million, the three northern schools wouldn't have millions less in 2013-14, but three-quarters of a million less at both Great Basin and Western Nevada colleges, and $480,000 less at Truckee.

And the other colleges wouldn't receive their entire increases immediately.

Regents praised the new formula for using performance instead of student tallies to guide state dollars.

"It is such a fundamentally positive move forward," said Regent Michael Wixon, who represents Clark County, adding that the formula isn't perfect but the first step in a new direction. "This is both the end of a process and the beginning."

But Regent Ron Knecht, the dissenting vote, found fault with providing more money to courses based on cost. He argued that "social value" should be factored in as well.

Despite regents' near unanimous approval of the new funding formula, the chance of it becoming a reality is slim.

A legislative committee will present its own alternate funding model on Aug. 29, which may differ from what regents approved Friday.

Contact reporter Trevon Milliard at tmilliard@review journal.com or 702-383-0279.