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Going all the Way: 100% Outcomes Funding

Michael Bettersworth
Michael Bettersworth

The document discusses Texas State Technical College's (TSTC) Value-Add funding model, which bases 100% of the college's funding on student outcomes like job placement, earnings, and overall economic impact rather than traditional enrollment-based funding. It provides an overview of the model's structure and timeline, measuring factors like course completion, graduates, job placement rates, and earnings. The model distributes economic impact between the college and state based on tax revenue. TSTC argues this approach better aligns funding with student and industry needs by rewarding student success and job placement over prolonged time to completion.

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Going All the Way: 100% Outcomes Funding SXSWEdu 2014 Session Submission
Going all the Way: 100% Outcomes Funding Session Panelists
2007 2008 2009 2010 2011 2012 Value-Add concept designed in collaboration with Ray Perryman THECB concludes model feasible and has great merit. TSTC board agrees. 80th Session TSTC asked to consider outcomes funding 82nd Session THECB, Comptroller, TWC, TSTC, UT Austin RMC develop Value-Add Model 81st Session THECB, Comptroller, TWC asked to do feasibility study THECB Board approves new Value-Add Model for TSTC. 2013 83rd Session THECB uses Value- Add Model. Structure: Value-Based Funding Model Timeline ofValue-Add Model
Enrollments Demographics Contact Hours Course Completion Graduates Numbers of Awards Award Levels National Benchmarks Placement Rate Earnings Student Satisfaction Employer Satisfaction New Companies Return on Investment Value to Taxpayer Efficiency What is Measured: Drives Behavior Historic Focus on Activity
Funding Approaches: Contact Hours vs. Value-Based Funding Model Structure Drives Behavior Value-Add Rewards student success Encourages short time-to- completion Aligns with student & industry needs Uses job placement as the main measure of success Is self-funded by tax revenues after desired results are realized Contact Hour Rewards activity Encourages prolonged time to completion Aligns with academic tradition Uses enrollment as the main measure of success. Provides funding in anticipation of desired results
CONFIDENTIAL DRAFT. INCOMPLETE DATA. FOR INTERNAL USE ONLY. Data: Earnings Data from TWC UI Wage Records TSTC System 2005-06 Cohort,Top 15 AAS Degrees
ValueValue AddAdd Structure: Value-Based Funding Model Identifying theValue Add
$35K$35K ValueValue AddAdd $35K$35K ValueValue AddAdd $35K$35K ValueValue AddAdd $35K$35K ValueValue AddAdd Revenue ShareRevenue SharePercentPercent ValueValue AddAdd DirectDirect (Taxes)(Taxes) IndirectIndirect (Activity)(Activity) CollegeCollege StateState Structure: Value-Based Funding Model Distribution of Economic Impact
Structure: Value-Based Funding Model Detailed Process Overview ValueValue AddAdd
More Skilled Talent Placed in High-Demand Careers Earning Premium Wages Generates More Tax Revenue Structure: Value-Based Funding Model Core Logic
Structure: Value-Based Funding Model Already Moving From Activity to Outcomes
"Right now, we pay based upon how many students you have, not on the results of how many jobs you're getting people into." Wants New Model: not based on butts in seats but on how many of those butts can get jobs." Governor Pat McCrory North Carolina Perhaps: Coming to a State Near You North Carolina Governor calls for Value-Based higher ed funding
AT TSTC, its not about getting students INTO college...
Its about getting OUT and INTO a JOB.
Presented by Michael A. Bettersworth, Texas State Technical College HIREDHIREDHIREDHIRED HIREDHIREDHIREDHIRED HIREDHIREDHIREDHIREDHIREDHIREDHIREDHIRED HIREDHIREDHIREDHIREDHIREDHIREDHIREDHIRED HIREDHIREDHIREDHIRED HIREDHIREDHIREDHIRED HIREDHIREDHIREDHIRED HIREDHIREDHIREDHIRED HIREDHIREDHIREDHIREDHIREDHIREDHIREDHIREDHIREDHIREDHIREDHIRED HIREDHIREDHIREDHIREDHIREDHIREDHIREDHIREDHIREDHIREDHIREDHIREDPromotedPromotedPromotedPromoted HIREDHIREDHIREDHIRED HIREDHIREDHIREDHIRED HIREDHIREDHIREDHIRED HIREDHIREDHIREDHIRED HIREDHIREDHIREDHIRED HIREDHIREDHIREDHIRED HIREDHIREDHIREDHIRED HIREDHIREDHIREDHIRED HIREDHIREDHIREDHIRED HIREDHIREDHIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIREDHIREDHIRED HIREDHIREDHIREDHIRED HIREDHIRED HIREDHIRED HIREDHIREDHIREDHIRED HIREDHIREDHIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIREDHIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIRHIR HIREHIRE HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIREDHIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIREDHIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREHIREHIREHIRE
Going All the Way: 100% Outcomes Funding SXSWEdu 2014 Session Submission

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Going all the Way: 100% Outcomes Funding

  • 1. Going All the Way: 100% Outcomes Funding SXSWEdu 2014 Session Submission
  • 2. Going all the Way: 100% Outcomes Funding Session Panelists
  • 3. 2007 2008 2009 2010 2011 2012 Value-Add concept designed in collaboration with Ray Perryman THECB concludes model feasible and has great merit. TSTC board agrees. 80th Session TSTC asked to consider outcomes funding 82nd Session THECB, Comptroller, TWC, TSTC, UT Austin RMC develop Value-Add Model 81st Session THECB, Comptroller, TWC asked to do feasibility study THECB Board approves new Value-Add Model for TSTC. 2013 83rd Session THECB uses Value- Add Model. Structure: Value-Based Funding Model Timeline ofValue-Add Model
  • 4. Enrollments Demographics Contact Hours Course Completion Graduates Numbers of Awards Award Levels National Benchmarks Placement Rate Earnings Student Satisfaction Employer Satisfaction New Companies Return on Investment Value to Taxpayer Efficiency What is Measured: Drives Behavior Historic Focus on Activity
  • 5. Funding Approaches: Contact Hours vs. Value-Based Funding Model Structure Drives Behavior Value-Add Rewards student success Encourages short time-to- completion Aligns with student & industry needs Uses job placement as the main measure of success Is self-funded by tax revenues after desired results are realized Contact Hour Rewards activity Encourages prolonged time to completion Aligns with academic tradition Uses enrollment as the main measure of success. Provides funding in anticipation of desired results
  • 6. CONFIDENTIAL DRAFT. INCOMPLETE DATA. FOR INTERNAL USE ONLY. Data: Earnings Data from TWC UI Wage Records TSTC System 2005-06 Cohort,Top 15 AAS Degrees
  • 7. ValueValue AddAdd Structure: Value-Based Funding Model Identifying theValue Add
  • 9. Structure: Value-Based Funding Model Detailed Process Overview ValueValue AddAdd
  • 11. Structure: Value-Based Funding Model Already Moving From Activity to Outcomes
  • 12. "Right now, we pay based upon how many students you have, not on the results of how many jobs you're getting people into." Wants New Model: not based on butts in seats but on how many of those butts can get jobs." Governor Pat McCrory North Carolina Perhaps: Coming to a State Near You North Carolina Governor calls for Value-Based higher ed funding
  • 13. AT TSTC, its not about getting students INTO college...
  • 14. Its about getting OUT and INTO a JOB.
  • 15. Presented by Michael A. Bettersworth, Texas State Technical College HIREDHIREDHIREDHIRED HIREDHIREDHIREDHIRED HIREDHIREDHIREDHIREDHIREDHIREDHIREDHIRED HIREDHIREDHIREDHIREDHIREDHIREDHIREDHIRED HIREDHIREDHIREDHIRED HIREDHIREDHIREDHIRED HIREDHIREDHIREDHIRED HIREDHIREDHIREDHIRED HIREDHIREDHIREDHIREDHIREDHIREDHIREDHIREDHIREDHIREDHIREDHIRED HIREDHIREDHIREDHIREDHIREDHIREDHIREDHIREDHIREDHIREDHIREDHIREDPromotedPromotedPromotedPromoted HIREDHIREDHIREDHIRED HIREDHIREDHIREDHIRED HIREDHIREDHIREDHIRED HIREDHIREDHIREDHIRED HIREDHIREDHIREDHIRED HIREDHIREDHIREDHIRED HIREDHIREDHIREDHIRED HIREDHIREDHIREDHIRED HIREDHIREDHIREDHIRED HIREDHIREDHIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIREDHIREDHIRED HIREDHIREDHIREDHIRED HIREDHIRED HIREDHIRED HIREDHIREDHIREDHIRED HIREDHIREDHIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIREDHIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIRHIR HIREHIRE HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIREDHIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIREDHIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREDHIRED HIREHIREHIREHIRE
  • 16. Going All the Way: 100% Outcomes Funding SXSWEdu 2014 Session Submission