Performance Funding For College Completion-Version 2.0

March 5th, 2014

Over the years, 32 states have implemented some form of performance funding. This brief distinguishes between PF1.0, which involves a bonus on top of regular state funding, and PF2.0, which typically retains enrollments as one funding driver. Based on studies of PF1.0 (PF2.0 is still in its early days), performance funding  led to changes intended to improve student outcomes, but those changes didn’t work. The brief reviews obstacles and unintended impacts, then offers possible solutions. (Community College Research Center)

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