Tennessee was the first state to utilize quality metrics in state funding; for over 40 years, Quality Assurance Funding (QAF), previously known as Performance Funding, has provided incentives for all public colleges and universities to measure student learning and institutional effectiveness as part of the continuous improvement process. Institutions may earn an additional 5.45 percent over operating budgets based on performance on metrics particular to their sector and aligned to the Tennessee Higher Education Master Plan. Quality Assurance Funding standards are evaluated every five years to ensure alignment with the public agenda and state high education priorities. The QAF Advisory Committee is comprised of governing board and institutional leadership collaborating with THEC staff to revise the standards that are then approved by the Commission.
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