Manitoba looks to Tennessee model in efforts to tailor post-secondary education to labour market

Premier Brian Pallisteris looking at the example of an American state that pioneered performance-based funding for post-secondary institutions, as Manitoba seeks a new way to finance higher education.

The premier met with the University of Manitoba's new president, Michael Benarroch,in September. The premier expressedinterest in following the lead of Tennessee, says Benarroch, but perhaps not that of other Canadian provinces that have explored performance-based funding, likeAlberta and Ontario.

"Interestingly, the premier said in our conversation that he didn't want to make the mistake that some of the other provinces have made he didn't want this to be a hammer," Benarroch told a U of M senate meeting on Oct. 7.

"And he referred to, as our [economic development]minister has donethe Tennessee model, which is one that shows up in the United States as the ideal of these kinds of models."

Benarrochlater urged hiscolleaguesto explore what Tennessee has done.

"We can help to influence government's direction as they move forward with this," Benarroch said inan audio recording of the virtual meeting, which CBC News requested from the university.

In the last year, Manitoba's Progressive Conservative government has repeatedly signalledit wants to tailor universitiesand colleges to more closely meet labour market needs, but hasn't explained what that might look like.

If Manitoba emulates Tennessee's policy, it wouldn'tbe the only jurisdiction.

A majority of American states have developed post-secondary funding models based onperformance rather than enrolment numbers since Tennessee started doing so in 1979. The useof the model hasvaried significantly, however, andbeen discontinued in some cases.

Tennessee basesabout83per cent of its post-secondaryfunding allocation on a set of weighted outcomes and "quality standards,"and the remaining 17per cent onfixed costs, according to a state document.

The lion's share of funding is based on outcomes likegraduation rates, the number ofdegrees awarded, the number of credit hours obtained and thecertificates and degrees granted per 100 full-time students. Lower-performing schools receive a smaller grant.

MacGregorObergfellstudied Tennessee's approach as a former research intern with the New America, a public policythink tank.

"It can work, but you have to be very careful with how you develop it," he said in a phone interview from Washington, D.C.

A funding model incentivizinggraduation rates and certain majors may stop some students from applying, Obergfell said.

"Ifthey're not set up in a way that really makes sure that the institution is still a place that is accepting of students and is there to help them succeed through enrolment to graduation, they can actually be counterproductive in practice."

Disadvantaged students prioritized

Tennessee's financing modelhas been evolving, in part, to address these criticisms. The funding formula can be revised every five years, and apremium is now placed onadvancing students from disadvantaged backgrounds. As well, institutions can weigh some metrics as more valuable, depending on their priorities.

Thefinancing model is alsohelped by a suite of other initiatives to encourage enrolment, Obergfell said, including free community or technical college for some residents and a campaign to getpost-secondary credentialsfor55 per cent of Tennesseans by 2025.

An outcomes-based model "has to be incorporated with other programs designed to increase access" for students, hesaid.

Scott Forbes, president of theManitoba Organization of Faculty Associations, said thesepolicies yield minimal, if any, benefits, butcomeat asignificant cost.

"The universities, ifthey're penalized for having lower participation rates, lower graduation rates, lower retention rates simply change their entrance standards," said Forbes, referring toresearchthat found thesemodelstend to exacerbate challenges for low-income and minority applicants.

Forbes said any outcomes-based model would require an influx in new funding, but he isn't confident thePallister government will follow suit. Manitoba post-secondary institutions have faced funding freezes, and in one year, a cut.

Benarrochsaidin an interview he recognizes the trepidation over a new financingmodel, but he believes it can help.

"I think as you become more informed and more aware of how it works, some of that fear dissipates," he said, adding that any system should account for differences between institutions.

"You begin to realize that in places where this has been implemented and implemented wellthat, in factit can help to improve outcomes over time."

In an email, the province wouldn't discuss itsmeeting with the U of M, but said it would prioritize accountability in any outcomes-based funding model.

It's also reviewing the approaches in Alberta and Ontario, which haven't implemented their models yet because of the pandemic.

"The Tennessee model was established in the 1970s to fund institutions based on performance instead of enrolment numbers, and it includes easy-to-understand metrics that capture each school's uniqueness and an external review committee to ensure the metrics are fair and effective," the statement said.

"Weare working to develop a model and funding metrics that best fit Manitoba's needs and will involve our seven publicly funded colleges and universities throughout the design, development and implementation process."