Tag: State Performance Funding

Why State Performance Funding For Colleges Will Not Work

A recent study explores the reasons Indiana, Ohio, and Tennessee pursued performance funding in higher education. While each state has been praised for its proactive stance to improve student and institutional outcomes, the study finds that the state-level policies do not sufficiently account for the unintended impacts of performance funding, including compliance costs, adulteration of quality, and perverse incentives to focus only on the activities that state legislatures have prioritized. (Community College Research Center

State Performance Funding For Colleges Spreading

In moving toward incentives for meeting state-mandated goals, Missouri would join a number of states that have recently adopted or are considering performance-based funding models in higher education. Pennsylvania will set aside 2.5% of its higher education budget for performance funding, while Tennessee will ultimately award more than 90% of its postsecondary money through such a system. See a recent report on performance funding programs. (Stateline.org, 09/08/11)