New Jersey Assembly Bill A1102

New Jersey 2026-2027 Regular Session

• Introduced: 1/13/26
• Refer: 1/13/26

Caption

Directs Secretary of Higher Education to establish performance-based funding plans for public institutions of higher education.

Impact

The implementation of performance-based funding plans will gradually affect the allocation of State operating aid, with specified percentages of funding impacted over the upcoming fiscal years. Beginning in fiscal year 2019, 5% of funding will be allocated based on these performance metrics, escalating to 25% by fiscal year 2023. A stop-loss provision ensures that no institution experiences a funding reduction greater than 2% in the initial year compared to the previous fiscal year.

Summary

Assembly Bill A1102 aims to enhance accountability and efficiency within public higher education institutions in New Jersey by instituting performance-based funding plans. The Secretary of Higher Education will be tasked with developing these plans, which are designed to significantly improve student outcomes, including their progression, matriculation, and graduation rates. The bill proposes to create tailored funding strategies for different types of institutions, such as county colleges and four-year public institutions, with provisions to create a specific plan for public research institutions if necessary.

Contention

There may be contention surrounding how these performance metrics are determined and the potential implications for institutions that may struggle to meet targets. Critics could argue that such a system might disproportionately affect institutions serving high-need populations or those with higher dropout rates, raising concerns about equitable funding and support for all students. Additionally, there might be discussions around the administrative burden of implementing performance-based funding models, as institutions will need to track and report various metrics to be eligible for funding.