Despite numbers that suggest performance-based budgeting is flawed, the University of Cincinnati is moving toward the first stage in a plan to adopt the system.
Of the 26 states that adopted performance-based budgeting, 12 have nixed the program, according to The Chronicle of Higher Education.
""UC is trying to gradually adapt the parts of performance-based budgeting that will work, and evaluating the situation before going further. But it's still evolving as it has been for the last several years,"" said Greg Hand, UC spokesperson.
Performance-based budgeting would impact different colleges on campus.
""Colleges really wanted to work it down into understanding the budget,"" Hand said. ""[We're] actually working for these revised budgets and asking the colleges to develop plans to increase their income just started this year. As we get through this budget year they'll come back and ask ‘How did it work?' and adjust. We seem to be set up on a pretty strong footing with a lot of support from the colleges. This gives them more ability to make decisions about their own college's future.""
There are no known costs to transition to performance-based budgeting, Hand said.
Dean Richard Newrock of the College of Applied Science was on the original committee for the new system and knows about the differences being made.
Colleges are benefiting from the new system already, Newrock said. If the budgeting system is properly implemented, it would be of real benefit to the colleges.
Still, Newrock said there is room for work to be done.
""I think if it continues on the track it's been, which is primarily counting how many students, or as we put it ‘how many butts in the seats,' then it is leaving too much out,"" he said. ""There are many, many aspects of performance that have nothing to do with how many students you have: quality of the faculty, quality of the publication, the amount of research being done. There are all kinds of things in performance-based budgeting that don't appear to be taken into account in its current incarnation; that may change in the future.""
Changing policies in Ohio is not a big concern for UC. Historically, Ohio has held a stance that, if the university brings in and graduates more students, the university will receive more funding.