State Performance Funding

The performance funding model is based on 11 metrics primarily focused on student success including bachelor’s degrees produced, earned student credit hours and undergraduate student retention and progression. The competitive-based model rewards universities with rates of growth that exceed the sector average. 

FY 2022-23 is the sixth year the Kentucky General Assembly has used the performance funding model to allocate state appropriations to the public universities and the Kentucky Community and Technical College System (KCTCS). It is the second year the Commonwealth has invested new state funds into the model.

From FY 2017-18 to FY 2020-21, the public universities put at risk by way of required contributions approximately 11 percent of their base state appropriations, or $103.4 million. For these first four years, the Commonwealth did not contribute any new funds to the performance funding pool. For FY 2021-22, the Commonwealth placed $13.5 million of new state funds in the performance funding pool for the universities without requiring any matching contributions.

For FY 2022-23, the Commonwealth is placing $75.8 million of state funds in the performance funding pool for the universities, including the $13.5 million from the prior year.

UK has performed extremely well — achieving the highest number of growth rates above the sector average for every year the model has been in use. For FY 2022-23, UK achieved growth rates above the sector average on every metric, earning $30.9 million or 40.8 percent of the available state funds to the universities.