Oklahoma Performance-Based Funding Shift: Gov. Stitt's Executive Order Reshapes Higher Ed

📋 Overview of Gov. Stitt's Executive Orders on Higher Education Reform

Oklahoma Governor Kevin Stitt made headlines on February 5, 2026, by signing two executive orders aimed at transforming the state's public higher education system. These directives, issued just ahead of the legislative session, seek to align universities and colleges more closely with workforce needs, taxpayer accountability, and economic growth. At the heart of the changes is a push toward performance-based funding (PBF), a model where state appropriations are linked to measurable outcomes rather than enrollment numbers alone.

Executive Order 2026-07 specifically initiates this performance-based funding shift, directing the Oklahoma State Regents for Higher Education (OSRHE) to develop a comprehensive plan by October 1, 2026. This plan will tie a portion of state funding to key metrics such as workforce and employment outcomes, student affordability, and alignment with Oklahoma's strategic economic priorities. Complementing this is a mandate for enhanced data tracking on graduates' post-college wages, job types, hours worked, and employment locations, alongside a 90-day feasibility study for accelerated 90-credit-hour bachelor's degrees.

The companion Executive Order 2026-06 focuses on tenure reforms, phasing out lifetime tenure at regional universities and community colleges in favor of renewable contracts based on performance. Research institutions like the University of Oklahoma (OU) and Oklahoma State University (OSU) can retain tenure but must implement mandatory five-year reviews. Together, these orders signal a data-driven overhaul intended to deliver real returns on public investment in higher education.

Governor Stitt emphasized the need for reform during remarks to the OSRHE, stating, "Here in Oklahoma, we want to deliver higher education that meets workforce needs and keeps our talent at home. It's a win-win." This move builds on years of discussions about modernizing funding to better serve students and the economy.

🔍 What Is Performance-Based Funding and Why Now in Oklahoma?

Performance-based funding, often abbreviated as PBF, represents a departure from traditional enrollment-driven models. In the past, states primarily allocated higher education dollars based on the number of students enrolled—full-time equivalent (FTE) students. This approach incentivized recruitment but sometimes overlooked completion rates, job placement, or long-term economic impact. PBF shifts the focus by rewarding institutions for achieving specific outcomes, such as higher graduation rates, credentials leading to in-demand jobs, and equitable access for underserved students.

Oklahoma has flirted with elements of PBF before. Historical reports from the OSRHE and task forces, like the 2018 Future of Higher Education report, recommended strengthening performance incentives to boost student success and instructional quality. However, implementation has been gradual, with funding still heavily tied to enrollment. The new executive order accelerates this evolution, mandating a roadmap for full integration into appropriations starting potentially next academic year.

Nationally, PBF has gained traction amid concerns over college affordability and workforce readiness. States like Tennessee, Ohio, and Indiana pioneered robust models over a decade ago. In Tennessee, for instance, up to 90% of public higher education funding now hinges on outcomes, resulting in measurable gains: community college completion rates rose by 12% within five years of full implementation, according to state reports. Ohio's model emphasizes equity metrics, rewarding progress for low-income and adult learners, while Indiana ties funding to credentials of value—certificates and degrees linked to high-wage jobs.

• Graduation and retention rates
• Job placement and earnings thresholds (e.g., graduates earning above median state wages)
• Equity in serving underrepresented groups
• Program efficiency and cost per completion

While successes are noted, critics argue PBF can pressure under-resourced institutions and narrow focus to quantifiable metrics at the expense of broader education goals. Oklahoma's approach appears balanced, incorporating affordability and economic alignment to mitigate these risks.

📊 Key Components and Timeline of the Performance-Based Funding Plan

The executive order outlines clear directives for OSRHE. Within 90 days, agencies must enhance wage-record data sharing between the Oklahoma Employment Security Commission and higher education institutions. This granular tracking—covering not just whether graduates are employed, but where, in what roles, and at what pay—will form the backbone of performance evaluations.

By October 1, 2026, OSRHE must deliver the PBF plan, designed to "maximize the state's return on investment." Expected metrics draw from national best practices but tailored to Oklahoma's needs, such as:

• Workforce Outcomes: Percentage of graduates employed in Oklahoma six months post-graduation, with emphasis on high-demand fields like nursing, energy, and aerospace.
• Affordability: Progress toward lower net costs, including three-year completion for associate degrees and four-year (or accelerated) bachelor's.
• Equity and Access: Success rates for first-generation, rural, and minority students.
• Economic Impact: Alignment with state priorities like Vision 2040 economic development goals.

Institutions will also use this data for program decisions: approving high-outcome programs while sunsetting low performers. The 90-credit bachelor's feasibility study could revolutionize degree paths, potentially cutting time-to-degree by 25% and costs by thousands, similar to competency-based models in Western Governors University.SHEEO's national PBF dataset highlights how such innovations boost efficiency.

🎓 Impacts on Students, Faculty, and Institutions

For students, PBF promises sharper focus on career-relevant education. Accelerated pathways mean faster entry into jobs, reducing debt—Oklahoma students already face average debt of $28,000 upon graduation. Regional universities and community colleges, serving over 54,000 students, stand to benefit most if they excel in completions and placements.

Faculty face heightened accountability. While research powerhouses like OU and OSU maintain tenure with reviews, renewable contracts at other campuses tie renewals to teaching effectiveness and student success. This mirrors trends in states like Florida, where post-tenure reviews ensure ongoing performance.

Institutions must adapt swiftly. OSRHE Chancellor Sean Burrage welcomed the orders as aligning with "accountability, affordability, and workforce needs." However, smaller colleges worry about resource gaps. Success stories from Ohio show that with support—like technical assistance—institutions improve outcomes without sacrificing quality.

Economically, retaining talent is key: Oklahoma loses 40% of college graduates out-of-state annually. PBF could reverse this by prioritizing local job alignment, bolstering sectors like healthcare (where nursing grads have surged recently) and tech.

🗣️ Stakeholder Reactions and Broader Perspectives

Reactions are mixed. Governor Stitt's office hails the orders as taxpayer wins, building on school choice investments.The official announcement details full texts.

The American Association of University Professors (AAUP) lambasted the tenure aspects, with President Todd Wolfson warning of eroded academic freedom and recruitment challenges. For PBF specifically, unions urge safeguards against punishing mission-driven programs.

Conservative groups like the Oklahoma Council of Public Affairs praise accountability: "No job funded by taxpayers should be exempt from reviews." Educators see potential but call for inclusive metric design.

National experts like Timothy Cain note this fits a trend of state interventions, but Oklahoma's executive approach bypasses legislature for speed.

🌍 Lessons from Other States' PBF Implementations

Tennessee's model, revamped in 2015, allocates 90% of funding to outcomes, yielding a 20% completion increase at some campuses per state audits. Ohio rewards equity, lifting Pell-eligible graduation rates. Indiana emphasizes employer-validated credentials, with early data showing wage gains for grads.

Studies, including from Third Way and Lumina Foundation, affirm PBF drives progress when metrics are balanced and hold-harmless periods ease transitions. Oklahoma could adopt similar phased rollouts.

• Tennessee: Momentum metrics (progress/credit accumulation) + completion.
• Ohio: 80% outcomes-based, includes research productivity.
• Indiana: High-weight on job placement post-150% time.

Avoiding pitfalls like overemphasizing transfers requires nuanced design, as SHEEO recommends.

💼 What This Means for Higher Education Careers in Oklahoma

As reforms take hold, opportunities abound for adaptable professionals. Faculty positions emphasizing teaching excellence and workforce-aligned programs will proliferate, especially at community colleges. Administrators skilled in data analytics and program evaluation gain edge.

Explore faculty jobs or admin roles tailored to Oklahoma's evolving landscape. Students and alumni can leverage Rate My Professor for insights into performance-focused campuses.

For job seekers, this shift underscores demand for skills in high-growth fields—check university jobs statewide. Institutions excelling under PBF will attract top talent, positioning Oklahoma as a higher ed innovator.

Photo by Stan Paregien Sr on Unsplash

🔮 Looking Ahead: Implementation and Next Steps

OSRHE leads implementation, with compliance certifications required. Legislative buy-in during the 2026 session will determine funding levels—Oklahoma's higher ed budget exceeds $1.5 billion annually.

Potential challenges include metric gaming or inequity, but proactive data use could mitigate. Success hinges on collaboration: faculty input, student voices, employer partnerships.

In summary, Gov. Stitt's orders herald a performance-driven era. For deeper engagement, visit rate your professors, search higher ed jobs, or explore career advice. Share your thoughts in the comments—what does this mean for Oklahoma's future?Related enrollment trends.