Performance-based funding is a system based on allocating a portion of a state's higher education budget according to specific performance measures such as course completion, credit attainment, and degree completion, instead of allocating funding based entirely on enrollment. It is a model that provides a fuller picture of how successfully…

In 2001, Indiana officials at the Department of Education were taking stock. The schools had an excellent network infrastructure and had installed significant numbers of computers for 1 million public school enrollees. Yet students were spending less than an hour a week on the computer. It was then that state officials knew each student needed a…