The Pennsylvania General Assembly’s Performance-based Funding Council converged for a special on-campus hearing at Temple University on Thursday, Jan. 30. This was the second on-campus hearing for the council, which has been charged with developing a new performance-based funding model for Pennsylvania’s state-related universities. The council previously met Jan. 21 for a public hearing at Penn State University.

The Performance-based Funding Council was established in 2024 as a result of the bill SB 1154, which was sponsored by Senator Ryan Aument, being signed into law. The council includes five voting members from state government—the secretary of education, a member of the Senate appointed by the president pro tempore, a member of the Senate appointed by the minority leader, a member of the House appointed by the speaker and a member of the House appointed by the minority leader—as well as nonvoting members that represent three of Pennsylvania’s state-related institutions.

“Representing Temple on the commonwealth’s advisory council and hearings with the legislature has provided important insight as our university considers the next iteration of budgeting model,” said David Marino, vice president for finance and university treasurer, who represented Temple during the Jan. 30 hearing. “Our guiding principles, established a decade ago to inform our decisions in a decentralized budget model, closely align with performance-based funding goals which have the potential to enhance accountability and improve outcomes for our students.”

The council has been charged with developing a process to distribute funding to three of the commonwealth’s state-related universities—Temple, Penn State and the University of Pittsburgh. The council is required to provide recommendations to Pennsylvania Governor Josh Shapiro and the General Assembly for a performance-based funding model by April 30, 2025.

In addition to Marino, the on-campus hearing featured testimony from Ray Epstein, a Temple student and president of Temple Student Government; Temple student Radhey Patel; Chellie Cameron, president and CEO of the Chamber of Commerce for Greater Philadelphia; Pat Clancy, president and CEO of Philadelphia Works; and Daniel Kuba from the Pennsylvania Department of Labor and Industry. A familiar theme from everyone's testimony was the notion that Temple is an institution that is critical to the social and economic vibrancy of both Philadelphia and the entire commonwealth of Pennsylvania.

“Temple University exemplifies how Pennsylvania’s state-related universities’ distinct missions must be considered within the framework for performance-based funding metrics. Temple explicitly prioritizes preparing students for careers and active citizenship while maintaining a steadfast commitment to accessibility and affordability,” Cameron said during her testimony. “This mission-driven approach transcends traditional academic boundaries, extending beyond STEM and healthcare sectors to include substantial contributions to the vibrant Greater Philadelphia arts community. By demonstrating such multifaceted impact, Temple underscores the Performance-based Funding Council's need to heavily consider each university's unique institutional mission when developing comprehensive evaluation metrics.”

Epstein specifically discussed the profound impact that Temple has had on her own life as a student.

“If I have learned anything in my time at Temple, it is that there is no such thing as reaching too far,” Epstein said during her testimony. “Temple University will catch you when you fall and push you back up to achieve something greater. Our diverse nest, which hosts so many unique students, would not be the way I have described to you, a place that allows anyone to take a leap, without state support.”

As the hearing continued, Marino emphasized that any proposed funding model for Pennsylvania’s state-related institutions should be transparent and based on a limited number of meaningful metrics. He noted that too many metrics can complicate the model and create confusion about how funding decisions are made.

Citing Florida’s model, he outlined four key principles to be used as a blueprint for any performance-based funding model.

“The first principle—aligning metrics with the state’s strategic goals—ensures that funding priorities reflect what is most important to the commonwealth. In July 2024, Temple adjusted the tuition allocation to use such a performance-based formula to incentivize retention and graduation.

The second principle—rewarding either excellence or improvement—is also critical. It recognizes that institutions have different starting points, and that improvement should be incentivized. This is especially important for universities like Temple, which serve a large number of first-generation college students, Pell Grant recipients and other underrepresented groups. A model that rewards improvement can help ensure that these students are not left behind.

The third principle—keeping the metrics clear and simple—cannot be overstated. Overly complex models are difficult to administer and understand. They also risk creating perverse incentives or loopholes that can be exploited. A straightforward model, with a limited number of well-defined metrics, is more likely to produce the desired outcomes.

The fourth principle—acknowledging the unique missions —is particularly important for Temple, as an anchor institution in Philadelphia, providing educational opportunities to a diverse urban population. Temple’s mission includes a strong focus on access, affordability and community engagement. Any model must account for these mission-driven priorities to ensure that resources are invested accordingly.”

As the Performance-based Funding Council continues its work to finalize recommendations ahead of the April 30 deadline, the group is next scheduled to meet Feb. 19 at the University of Pittsburgh.