Creates a performance funding incentive system for the four-year institutions and requires the legislature to appropriate funding to each four-year institution contingent on the achievement of performance targets set for each four-year institution.

Requires the four-year institutions to work with the education data center to establish a menu of achievement metrics designed to measure progress towards the statewide achievement goals.

Requires the education data center to establish a three-year average performance baseline for each institution's selected metrics.

Requires the office of financial management, once an institution's performance targets are approved, to determine each institution's proportion of the total performance funding appropriated for that period.

Requires a four-year institution that declines to participate by not submitting biennial performance targets or does not achieve its biennial performance targets, to forfeit its proportion of performance funding dollars for that biennium.