Publications Detail

Funding Tennessee’s Public Colleges and Universities: The Outcomes-Based Funding Formula
November 2017
The outcomes-based funding formula is a complex funding tool that allocates state funds to Tennessee’s public colleges and universities based on performance. In 2017-18, the formula calculated approximately $913 million in appropriations for higher education and how those funds should be distributed to each institution. 

To help the General Assembly, higher education administrators and stakeholders, and the public understand Tennessee’s outcomes-based funding formula, OREA has created a report that explains how the formula works. Throughout the report, the major components that drive the funding recommendations are explained and accompanied with step-by-step examples. The link above contains the full report in PDF format. 

To supplement the report, OREA has also created several other documents that help explain the formula and how it produces funding recommendations. Each document adopts a different format for explaining the formula, and provides the reader different methods for understanding how the formula works. These include a four-page brief, an infographic detailing the funding recommendation process created by the formula, and a one-page executive summary. 

We hope these documents make the state’s outcomes-based funding formula for higher education more understandable and transparent. For any questions regarding the documents, please contact OREA at