Kentucky’s higher education institutions would compete for a portion of their state funding under the Senate’s budget proposal, which will be fully unveiled later this week.
The competition would be based on degrees produced, graduation rates, retention rates and closing “achievement gaps” among low-income students and underrepresented minorities.
“Whoever’s excelling deserves to be rewarded,” said Sen. David Givens, a Greensburg Republican and main architect of the policy, which he said would go into effect in 2018.
Schools would be separated into three tiers and compete for about 25 percent of their state funding.
The University of Kentucky and University of Louisville would compete in the first tier. The second tier would include the five regional universities: Eastern Kentucky, Western Kentucky, Northern Kentucky, Morehead State University and Murray State.