Performance Tied to Strategy: Indiana Gets It Right

I’m much encouraged by the post in Inside HIgherEd this morning on Indiana’s decision to be strategic in making budget cuts in higher education. Would that other states have this courage in hard times.

The usual approach is to treat all institutions “about” the same. That is, fund them all equally in good times and down times without any reference to how colleges and universities are helping states meet their goals. Of course, legislators are chief culprits in making sure that institutions in their bailiwicks don’t suffer disproportionately when times are hard. Its the old argument about whether higher education is an employment agency and local economic development arm or part of a larger vision that can move a state forward. In walks Indiana.

Indiana has decided to cut the budgets of some institutions because their per-student costs are higher and their completion rates are lower! Amazing. Inspiring. Trend setting for other states?

Now, if we could get institutions themselves thinking about their own programs and how they mesh with state strategy. In my consulting practice, I see this as a place most colleges and universities would like to go, at least in theory, but most find many internal roadblocks placed in their way. Few institutions understand what types of students are completing programs and going on to degrees.

Indiana’s challenge will be how to maintain a performance system after the federal stimulus dollars dry up. The political pressure must have been extreme to push this through in a down budget cycle. When things turn around, will it be business or usual? Or will we be celebrating the courage of the head of the Indiana Commission on Higher Education, Teresa Lubbers, herself a former Legislator, and Governor Daniels? Stay tuned.