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Lawmakers Advance Bill to Explore State University Performance-Based Funding in Iowa

The Iowa Board of Regents would be required to study a potential performance-based funding model under legislation that moved out of an Iowa House subcommittee on Jan. 21.

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Lawmakers moved a bill out of an Iowa House subcommittee Wednesday that would have the state鈥檚 public higher education system explore a funding model based on workforce-based performance measures.

would have the Iowa Board of Regents study a potential performance-based funding model for the University of Iowa, Iowa State University and the University of Northern Iowa and submit a report to the General Assembly by its November 2026 meeting.

According to the bill, this funding model should factor in graduation rates, the number of awarded degrees corresponding to Iowa鈥檚 high-demand jobs, post-graduation employment rates and income and how many graduates stay in Iowa.

While the board of regents is registered as undecided on the legislation, board state relations officer Jillian Carlson said there are some concerns with what would need to be factored into the funding model. Post-graduation income is one she identified as potentially posing an issue, as the universities work to meet workforce needs in rural areas where income is often lower.

鈥淚 think we certainly understand your guys鈥 desire to look at these performance metrics, but we do have some concerns with the metrics in the bill, particularly where they would conflict with state needs,鈥 Carlson said.

As the Iowa House Higher Education Committee is 鈥渓ooking to create efficiencies,鈥 Carlson said the board鈥檚 budget, investment and finance committee is 鈥渃urrently working on an efficiency review of all of our revenue鈥 鈥 an effort headed by Regent Kurt Tjaden.

Members of the subcommittee said they were surprised and disappointed to see little public comment during the meeting, with Rep. John Wills, R-Spirit Lake, saying he鈥檚 noticed a lack of participation in other subcommittees he鈥檚 sat on during this legislative session as well.

Rep. Heather Matson, D-Ankeny, was the only lawmaker on the subcommittee to not support the legislation, saying so after Rep. Taylor Collins, R-Mediapolis, didn鈥檛 answer her questions on what a performance-based funding model would look like from his perspective as the person who filed the bill.

鈥淚 think it probably goes without saying that I鈥檓 not going to be signing off on the bill today, mostly because of a lack of engagement in a conversation on what this bill actually entails and how it will practically work in the real world,鈥 Matson said.

She also took issue with the potential funding model鈥檚 criteria, some which she said are out of universities鈥 control. If a student decides to move away from Iowa because it is what is best for them and their family, she said a university could be penalized through the funding model even though they couldn鈥檛 do anything to change that outcome.

Collins said the bill would not enact a new system for universities to follow but 鈥渟eeks to align taxpayer investment with taxpayer return,鈥 and to gather additional information for the General Assembly to potentially act upon.

Iowa needs to evolve, Wills said, and the Legislature can鈥檛 just keep going with the status quo.

鈥淲e need to become more efficient,鈥 Wills said. 鈥淲e need to look and research other opportunities and other ways of doing business, because sometimes the status quo, the way we鈥檝e always done it, is not the best way.鈥

is part of States Newsroom, a nonprofit news network supported by grants and a coalition of donors as a 501c(3) public charity. Iowa Capital Dispatch maintains editorial independence. Contact Editor Kathie Obradovich for questions: [email protected].

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