(a) In addition to incorporating the guiding principles above, measures adopted in the productivity-based funding model should acknowledge the following priorities:

1. (1) Differences in institutional missions are recognized and encouraged;
2. (2) Completion of students’ educational goals should be the most important priority of every institution;
3. (3) Progression toward completion recognizes that funding must follow the student;

4. (4) Affordability is encouraged through:

   1. (A) On-time completion;
   2. (B) Limiting excess credits; and
   3. (C) Efficient resource allocation;

5. (5) Collaboration is rewarded by:

   1. (A) Encouraging successful transfer of students; and
   2. (B) Reducing barriers to student success; and
6. (6) Potential unintended consequence of raising academic requirements or lowering academic quality to increase completions must be discouraged.

(b)

1. (1) The measures adopted relate to:

   1. (A) Effectiveness;
   2. (B) Affordability; and
   3. (C) Efficiency.
2. (2) In addition, some adjustments to the model are necessary to respond to the unique missions of some institutions which cannot be captured in the productivity metrics.

(c)

1. (1) Measures will be reviewed every five (5) years to ensure that the model continues to respond to the needs and priorities of the state.
2. (2) A review more frequently than five (5) years is impractical as institutions would not have opportunity to respond in a timely fashion.
3. (3) However, if it is determined that the measures adopted have created unintended consequences, those measures will be reviewed immediately.