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