SCORE Recommends Tennessee Revise Its College Funding Formula to Focus on Student Success
Photo: Tennessee SCORE
Last week, education organization Tennessee SCORE released a report urging the Tennessee Higher Education Commission (THEC) to update how the state funds its colleges and universities.
The goal, SCORE says, is to better prepare students for good jobs, strengthen Tennessee’s workforce, and make sure every resident has a fair shot at success.
Under the current outcomes-based funding system, implemented in 2010, public community colleges and universities accumulate points based on multiple student outcomes, like receiving a bachelor’s degree. The institution’s relative growth in points compared to other institutions determines its share of state funding.
Photo: Tennessee SCORE
Steps for the State to Take
SCORE is proposing that Tennessee make several changes to the funding formula to better align with the state’s workforce goals.
One of them is to give a bigger reward to colleges when students earn degrees or certificates in fields that lead to strong, well-paying jobs.
Photo: Tennessee SCORE
“To narrow the gap between education and opportunity for students, Tennessee should replace the high-need premium with an impact credential bonus that more adequately recognizes the workforce impact of the credentials students earn,” said SCORE in its report.
In conversations with about 40 college and university leaders last year, SCORE found that many schools are putting a stronger focus on connecting their programs to Tennessee’s workforce needs.
SCORE also recommends simplifying the funding formula so that a student’s degree or credential, and its real-world impact, plays a bigger role in how schools are funded.
Early College Credit
SCORE is also urging Tennessee to better connect dual enrollment (DE) courses, which let high school students earn college credit early, to career pathways that lead to high-demand, well-paying jobs. Colleges would be rewarded more when students complete those types of courses.
“DE, a community college formula outcome, captures high school student enrollment in DE courses,” says SCORE. “Because it is enrollment-based, the DE metric does not hold institutions accountable for student success.”
From College to Career
SCORE’s policy group also recommends removing the current “job placement” measure from the formula and instead giving colleges a bonus when students earn credentials that have a clear impact on their career opportunities.
“Job placement is a workforce-related community college outcome intended to incentivize institutions to ensure students secure employment after graduation,” said SCORE. “While the job placement metric considers full-time employment, it does not evaluate earnings, job outlook, or any other indicator of meaningful employment.”
Credits Count
SCORE says the state should also simplify the formula by reducing the six separate credit progress measures to just one for each type of institution. That change would make it easier to track student progress toward earning a credential and keep the formula focused on workforce readiness.
“Streamlining the credit accumulation metrics to 15 credit hours for community college and 30 credit hours for universities would more greatly emphasize early success and credential attainment,” says SCORE.
Measuring Graduation Rates
The report also proposes updating how graduation is measured, using a four-year rate instead of six years, and removing the “degrees per 100 students” metric for universities to create a clearer, more consistent picture of student success.
“A four-year graduation rate would better align the formula with the goal of on-time completing, allowing students to enter the workforce more quickly and with fewer costs,” said the report.
Next Steps
The Tennessee Higher Education Commission (THEC) began a five-year review of the state funding formula this year. SCORE says the process is a “key window of opportunity” to make positive changes.
