Distributes the support of public higher education more equitably between the state and students and their families by establishing a funding methodology that is based on enrollment levels with which to provide predictable and stable baseline state funding to the institutions of higher education and by establishing a process whereby any state funds over and above the level needed for the baseline levels of state funding are distributed among the institutions of higher education based on their performance in meeting statewide goals and expectations.

Rewards the highest performers.

Requires the office of financial management to: (1) Convene a work group to review certain per-resident student rates;

(2) Make recommendations for achieving equal funding for similar institutions by the 2017-2019 fiscal biennium; and

(3) Submit a final recommendation of the work group to the governor and appropriate committees of the legislature.