Performance-Based Funding Models at Comprehensive State Institutions

Topics: Student Retention and Success, Budget Models and Cost Allocations, Budgeting, Administration and Finance

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States have typically allocated funds to higher education institutions based on enrollment, but policymakers increasingly acknowledge the inadequacy of enrollment as a measure of performance. Performance based funding, which links resource allocation to the accomplishment of desired outcomes, dominates policy discussions in many states. This report examines performance funding models and outcomes of new policies in five states.

Research Questions

  • What characterizes performance based funding models implemented?
  • How are differences in institutional missions accounted for in funding models?
  • What metrics do funding models repurpose to determine student success and productivity?