Incentivizing Results: Using Adult Education Funding Models ...

Incentivizing Results: Using Adult Education Funding Models ...

Incentivizing Results: Using Adult Education Funding Models to Advance Effectiveness and Equity Webinar for the National Association of State Directors of Adult Education April 16, 2019 at 1 pm ET L AURA RASMUSSEN FOSTER, RTI INTERNATIONAL STEVE KLEIN, EDUCATION NORTHWEST Webinar Agenda Laying groundwork: Concepts and terms Why change? A rationale for model updates Building formulas: Tools and examples Whats next? Introductions Laura Rasmussen Foster, RTI International Steve Klein, Education Northwest Reflection Questions Are you satisfied with the outcomes of your local service providers? Does your adult education funding model incentivize programs to improve?

Is your funding model aligned with other state education and workforce initiatives? Laying Groundwork: Funding model components Base Funding Guaranteed resources allocated to providers, irrespective of student or program performance. Often linked to enrollment or historical allocation. Incentive Funding Resources allocated to providers that achieve state-established performance goals. Wyomings Funding Model Base Funding (90%) Flat base minimum per site $70,000 Census (15% of base) Enrollment (55% of base) Rural Factor (13% of base) Need Allocation (dropouts, LEP, poverty (17% of base) Performance Funding (10%) # of Completions (60%) State negotiated targets (40%)

What can an effective model accomplish? Allocates resources using funding criteria tied directly to state goals Helps providers meet state and federal performance requirements Directs resources to programs in an equitable manner that accounts for differences in student populations Steps in Funding Model Development Establish state commitment Convene state taskforce Specify state funding goals and priorities Define criteria for allocating resources Identify appropriate data sources Model alternative funding formulas Design implementation strategies Sample Allocation: Funding and Enrollment Provider Provider # 1 Total Funding

% Funding # of Students % of Total Students $ Per Student $45,000 29% 900 16% $50 Provider # 2 $75,000 48%

3,500 64% $21 Provider # 3 $19,750 13% 850 15% $23 Provider # 4 $15,250 10% 250 5%

$61 $155,000 100% 5,500 100% $28 Totals Sample Allocation: Funding and Enrollment Provider Provider # 1 Total Funding % Funding # of Students

% of Total Students $ Per Student $45,000 29% 900 16% $50 Provider # 2 $75,000 48% 3,500 64% $21

Provider # 3 $19,750 13% 850 15% $23 Provider # 4 $15,250 10% 250 5% $61 $155,000 100%

5,500 100% $28 Totals Sample Allocation: Funding and Outcomes Provider Provider # 1 Total Funding % Funding # of Outcomes % of Total Outcomes $ Per Outcome

$45,000 29% 1,600 16% $28 Provider # 2 $75,000 48% 4,500 45% $17 Provider # 3 $19,750 13%

1,500 15% $13 Provider # 4 $15,250 10% 2,400 24% $6 $155,000 100% 10,000 100% $16

Totals Sample Allocation: Funding and Outcomes Provider Provider # 1 Total Funding % Funding # of Outcomes % of Total Outcomes $ Per Outcome $45,000 29% 1,600

16% $28 Provider # 2 $75,000 48% 4,500 45% $17 Provider # 3 $19,750 13% 1,500 15% $13

Provider # 4 $15,250 10% 2,400 24% $6 $155,000 100% 10,000 100% $16 Totals Arraying Results: Is my formula efficient? 70%

64% 60% 48% 50% 45% 40% 30% 20% 29% 24% 16% 16% 10% 0% 13% 15% 15% 10% 5% #1

#Program of Students Program #2 Program % #3of Total Outcomes Program #4 # of Outcomes Arraying Results: Is my formula efficient? 70% 64% 60% 48% 50% 45% 40% 30% 20% 29%

24% 16% 16% 10% 0% 13% 15% 15% 10% 5% #1 #Program of Students Program #2 Program % #3of Total Outcomes Program #4 # of Outcomes Funding Model Criteria Base

Institutional grants Program capacity/demand Need Historical Incentive NRS performance outcomes Quality indicators Performance targets Strategies for Ensuring Equity Establish stakeholder buy-in and gather input Account for differential outcomes due to learner needs Provide a predictable base of yearto-year funding Focus on high quality and available data Phased adoption of new formula Lessons Learned from Kentucky Context Transitioning from base + model to new funding model Funding distribution model vs. performance funding model

Considerations Aligning funding model with current state context and goals Increasing performance component to motivate local providers Simplifying funding criteria to ensure sufficient value in formula Discussion 1. What other questions/concerns do you have about updating your funding formula? 2. What support or resources would you need to undertake the process? Type into the chat box! For More Information Using Performance-Based Funding to Incentivize Change: https://www.rti.org/rti-press-publication/using-performance-based-funding-incentivize-change Technical Assistance to States on Performance-Based Funding: https://lincs.ed.gov/publications/pdf/Final_PBF_Project_Report_2010.pdf Thank You! Laura Rasmussen Foster Steve Klein Program Manager, Adult Education Studies Director, Center for School, Family, and Community

RTI International [email protected] 202-600-4294 Education Northwest [email protected] 503-275-9628

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