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Capitol Update: Outcomes-based funding - Paying for results
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Our state government frequently benefits from applying private-sector techniques to public-sector operations. Too often, government systems become cumbersome, slow-moving and inefficient because they lack a reason to be efficient. They can start out focused but lose effectiveness over time. Without the urgency created by economic factors, supply-and-demand and competition, government structure can grind along, becoming more complex and less effective as it grows from year to year.

Each session, the legislature seeks ways to combat public-sector lethargy. We look for ways to make our government operations more efficient, effective and financially responsible. We pursue ways to apply proven private-sector practices to government operations in an effort to be responsible stewards of taxpayer dollars while continuing to provide the services taxpayers rely on every day.

One great example of applying private-sector techniques to public-sector operations is outcomes-based funding which has been incorporated into the funding model for the Wisconsin Technical College System. The WTCS, the governor and the legislature designed a funding model that financially rewards technical colleges for achieving goals directly related to the mission of our technical college system.

The WTCS recently released its "Graduate Outcomes" report for 2015 and provided an annual "Outcomes-Based Funding" report to the Joint Finance Committee. These reports summarize the efforts and successes in our technical college system to measure and achieve mission-based goals in exchange for taxpayer dollars.

Overall, WTCS reports a 93 percent job placement rate for 2015 graduates with 78 percent being employed in a job related to their training. For the seven percent who are not employed, 86 percent are continuing their education. This is good news for communities in Wisconsin because 62 percent of technical college graduates stay in their college district after graduation and 19 percent move within the state of Wisconsin. This means that 81 percent of the people trained at a Wisconsin technical college stay and live in Wisconsin.

Wisconsin's technical colleges are doing good things. In order to financially reward their efforts and tie funding to results, the 2013-15 biennial budget established a new funding model for allocating 10 percent of appropriated general state aid to technical colleges based on nine criteria: Job placement rates; degrees and certificates awarded in high demand fields; programs or courses with industry-validated curriculum; transition of adult basic education students to skills training; success rate of adults in basic education courses; participation in dual-enrollment programs; workforce training provided to businesses and individuals; participation in collaboration or efficiency initiatives; and training provided to special populations or demographic groups unique to the district.

The criteria were designed by the WTCS in collaboration with the governor and legislature to create a funding model that financially rewards colleges for meeting mission-based goals and the needs of their customers - students. The criteria also help the colleges to identify areas they can develop to gain additional funding, which in turn, enables them to make an even greater impact on those they serve.

Four technical colleges serve residents of the 17th Senate District: Southwestern Wisconsin Technical College headquartered in Fennimore, Western Technical College headquartered in LaCrosse, Madison Area Technical College (Madison College) headquartered in Madison and Blackhawk Technical College headquartered in Janesville. Each college has a unique identity and serves their students and communities in different ways. The outcomes at which they excel also differ, but illustrate the reasons why outcomes-based funding are effective.

Overall, WTCS campuses received $17,706,980 in outcomes-based funding in 2015-16. The four campuses in the 17th Senate District received 22 percent of the funding with SWTC receiving $743,718 (4 percent ), WTC receiving $893,994 (5 percent), MATC receiving $1,637,683 (9 percent ) and BTC receiving $725,684 (4 percent).

The outcomes-based funding model shows us where our colleges are focused and rewards their efforts to serve students and our communities. I am proud of the efforts of our local technical colleges to meet workforce needs and look forward to continuing our work to serve the residents of the 17th Senate District.

For more information and to connect with me, visit my website at legis.wisconsin.gov/senate/17/marklein and subscribe to my weekly E-Update by sending an email to Sen.Marklein@legis.wisconsin.gov. Do not hesitate to call 800-978-8008 if you have input, ideas or need assistance with any state-related matters.



- Sen. Howard Marklein represents Wisconsin's 17th Senate District. His column is published Mondays in the Times.