Useful Report On College Performance Funding

June 1st, 2011

 

Performance-Based Funding: A Re-emerging Strategy
in Public Higher Education Financing

Cuts in state funding, increases in student enrollment and a focus on boosting college completion rates are among the many factors that call for a more sophisticated approach to financing states’ higher education systems. Toward this end, performance- or incentive-based state funding of public higher education is experiencing a notable resurgence as a means of boosting productivity and other measures of institutional success.

This policy brief explores Performance-Based Funding (PBF), its mixed history of success and its advantages and disadvantages. PBF delivery models, current state PBF systems and those in the proposal and design stage are discussed. The paper concludes with a set of principles and practices essential to effective PBF program design.

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