Nevada

Nevada adopted outcomes-based funding in 2012. It is allocated as base funding annually.

The Legislative Committee to Study the Funding of Higher Education (Chapter 375, Statutes of Nevada 2011) provided the 2013 Nevada Legislature with a recommendation for a new funding formula that fairly and equitably distributes state funding among Nevada’s public higher education institutions. Taking into account comments from the interim committee, public testimony, reports of SRI International, and the National Governors’ Association (NGA), the Nevada System of Higher Education (NSHE) believes the funding formula as approved by the 2013 and 2015 Legislatures, and continued by Governor Sandoval in the 2017-2019 Executive Budget and approved by the 2017 Legislature, fully captures the deliberations and final decisions of the interim committee and strongly supports the funding formula that incorporates these concepts. Of note, in the event that there are performance funds that are unearned by institutions, unearned funds are distributed to all institutions for need-based financial aid. Because there are many “working poor” in Nevada who do not qualify for Title IV Federal Student Aid, the institutions may determine students in need independently of Title IV guidelines. However, a redistribution has not occurred since the new formula was implemented.

Nevada uses two sets of metrics for two-year and four-year institutions, and each institution can choose an additional metric that is closely related to its scope and mission.

The metrics for two-year institutions include:

• One- and two-year certificates awarded
• Number of associate and bachelor’s degrees awarded
• Number of awards to minority students
• Number of awards to Pell‐eligible students
• Number of transfer students
• Efficiency: The number of associate and bachelor’s awards per 100 full-time, degree‐seeking students
• Number of gateway course completers: Total number of students (unduplicated) who successfully completed a college‐level English or mathematics course (grade C‐ and above) in the reporting year (fall and spring only)
• Economic development: Total number of certificates, including skills certificates and associate degrees, (first professional awards are excluded) in an academic year in STEM and health professions
• Economic development: Number of skills certificates of 9 to 29 credits that provide preparation necessary to take state, national, and/or industry-recognized certification or licensing examinations.

The metrics for four-year institutions include:

• Number of bachelor’s degrees awarded
• Number of master’s degrees awarded
• Number of doctoral degrees awarded
• Number of awards to minority students
• Number of awards to Pell‐eligible students
• Number of transfer students with a transferable associate degree
• Efficiency: The number of bachelor’s, master’s and doctoral awards per 100 full-time, degree‐seeking students
• Sponsored/external research expenditures: The total dollars expended on sponsored programs/projects of research and other scholarly activities for the fiscal year. This amount includes federal, federal pass‐through, State of Nevada, other state and local government, private for‐profit, private nonprofit. Other scholarly activity includes the instructional, public service, student services, and “other” functional grant categories, including workforce development. The figures exclude the scholarship/fellowship category.
• Economic development: Total number of certificates (including skills certificates), associate, bachelor’s, master’s, or doctoral degrees awarded (first professional awards are excluded) in an academic year in STEM and health professions.
• Economic development: Total number of bachelor’s, master’s, or doctoral degrees awarded (first professional awards are excluded) in an academic year based on CIP code selected by the institution that aligns with the state’s economic development plan.

For both two-year and four-year institutions, an additional weight of 0.4 is applied for each degree or certificate awarded to a minority student. Minority categories include all categories EXCEPT White, unknown, and non‐resident alien. General studies certificates are excluded.

An additional weight of 0.4 is applied for each degree or certificate awarded to a non‐minority Pell-eligible student (minority and Pell‐eligible awards are mutually exclusive and awards to minority students are captured in the minority awards so are excluded from the Pell‐eligible awards). General Studies certificates are excluded. The policy does not have a campus climate metric.

The policy is overseen by the Nevada Board of Regents. To learn more, visit https://nshe.nevada.edu/initiatives/formula-funding-study/.