1

Tennessee Higher Education Commission

Tennessee’s Outcomes-Based Funding Formula:

An Analysis of the First Two YearsFor more information, visit tn.gov/thec

2

Tennessee Higher Education Commission

• The outcomes-based model completely replaces the enrollment-based model. TN has no enrollment based allocation.

• The outcomes model is not for the allocation of new state funding, but for all state funding ($750 million).

• State appropriations have to be earned anew each year; all funding is back up for grabs.

TN Outcomes-Based Model

3

Tennessee Higher Education Commission

2010-11 2011-12 2012-13-4.0%

-3.0%

-2.0%

-1.0%

0.0%

1.0%

2.0%

Cumulative Change in State Appropriations Due to Formula

APSUETSUMTSUTSUTTUUMUTCUTKUTMTotal Funding