In this report, we examined five kinds of equity-focused metrics in state OBF policies to determine the extent to which states prioritize the enrollment and success of students of color and students from low-income backgrounds:
- Enrollment metrics for students of color
- Success metrics for students of color
- Enrollment metrics for students from low-income backgrounds
- Success metrics for students from low-income backgrounds
- Metrics related to campus racial climate
While the inclusion of these metrics in policies is essential, how they are deployed is equally as important. Therefore, we also considered whether the metrics were mandatory, optional, or weighted. Weighted metrics are the most ideal. These are mandatory and are given additional value, so strong institutional performance on a weighted metric would garner greater advantage or funding.
Two- and Four-Year Institutions
New Mexico adopted outcomes-based funding in 2011. It is allocated as base funding annually.
New Mexico statute (Section 21-2-5.1 NMSA 1978) required the state’s higher education department “to develop a funding formula that will provide funding for each institution of higher education to accomplish its mission …” and lists certain factors the secretary may consider when drafting the formula. The secretary of higher education, with the advice of a steering committee of higher education stakeholders, submits a request based on the funding formula to the Department of Finance and Administration and the Legislative Finance Committee (LFC) on the first of each November. This request serves as the basis for recommendations by the governor and the legislative finance committee for instructional and general funding for the following fiscal year. Consistent with past practice and the exercise of its appropriations power, the Legislature may adjust the funding formula levels to address state priorities.
The funding for each performance measure is distributed in proportion to each institution’s contribution to the higher education system’s (or a sector’s) total performance on that measure (or sector mission measure). In other words, if an institution contributes 3% to the higher education system’s (or a sector’s) total performance on a particular measure, then that institution will receive 3% of the funding distributed by that measure. The performance outcome measures in the NM higher education instructional and general funding formula are as follows:
- Total awards (students receiving an academic award)
- STEM-H awards (students receiving an award in science, technology, engineering, math, or health)
- Awards to financially at-risk students (defined by expected family contribution for those receiving aid)
- End-of-course student credit hours (student credit hours completed by students)
- Sector mission measures (i.e., research contracts/grants, student momentum points, and dual credit)
A unique feature of this policy is the way in which “financially at-risk” students are determined. Typically, states use Pell-eligibility as the main determinant, but New Mexico uses the expected family contribution formula instead. At two-year institutions in the state, a student with an EFC of less than $5,000 for one year is deemed financially at risk, while at four-year institutions in the state, a student with an EFC of less than $5,000 for three years is deemed financially at risk. The policy does not have a campus climate metric.
The policy is overseen by the New Mexico Department of Higher Education. To learn more, visit https://hed.state.nm.us/resources-for-schools/institutional-finance/nmhed-funding-recommendation.
Two-Year Institutions |
|
| Enrollment of Students of Color | None |
| Success of Students of Color | None |
| Enrollment of Students From Low-Income Backgrounds | None |
| Success of Students From Low-Income Backgrounds | Mandatory |
| Measure Related to Campus Climate | None |
Four-Year Institutions |
|
| Enrollment of Students of Color | None |
| Success of Students of Color | None |
| Enrollment of Students From Low-Income Backgrounds | None |
| Success of Students From Low-Income Backgrounds | Mandatory |
| Measure Related to Campus Climate | None |
