The Tennessee Higher Education Commission (THEC) coordinates the statewide performance funding program. According to the THEC web site, the performance funding program is an incentive-based funding initiative "for public higher education that financially rewards exemplary institutional performance on selected measures of effectiveness." The funds are used to improve the quality of the University's academic programs and student services.
Under the performance funding program, institutions can earn up to 5.45% over their operating budget. The program is based on a 100 point scale. This program is reviewed every five years by institutional representatives, governing boards, and the THEC staff for needed modifications. The current five-year cycle is 2010-2015 and addresses the following standards and maximum points awarded: