Operating revenue for public higher education is derived from several sources, such as state appropriations, tuition, room and board, and contracts. State funding in particular constitutes a large share of revenue and is consequently critical for improving enrollment, completion, and labor market outcomes. However, states differ in how…

The primary purpose of this study was to examine how best a Tennessee 4-year public university can perform under the state's outcomes-based funding formula, most commonly identified as either PF 2.0 or the Complete College Tennessee Act (CCTA) funding formula. Using a mixed methods approach, the research analyzed select input variable performance…

Budgets do not only pay the costs of activities. They also reveal the ambitions and limitations of an organization. The opportunities presented in a budget are also bounded by the structural elements used by that institution: how costs and revenues are organized, how overhead is calculated and apportioned, and how assets and investments are…

The study examined how institutional and student characteristics may influence the earning of student success points by state-supported community colleges under the Texas performance funding system that was fully implemented in the 2016-2017 biennium. Texas has historically funded community colleges based on an enrollment formula; however, the…

This is the third paper on the topic of outcomes-based funding written by Dennis Jones for Complete College America. The first paper, "Performance Funding: From Idea to Action" (ED535356), proposed a set of design and implementation principles to help states develop and implement their own outcomes-based funding models. The second paper,…

The Massachusetts community college system is entering a second year with funding for each of its 15 schools determined using a new performance-based formula. Under the new model, 50% of each college's allocation is based on performance on metrics related to enrollment and student success, with added incentives for "at-risk" students…

In 2011, state legislators in Arkansas passed Act 1203, effectively enacting performance-based funding models for all state-run institutions of higher education. Over a period of five years beginning in 2013-14, 25 percent of every institution's base funding will be allocated according to performance. Under the direction of the Arkansas Department…

The mere mention of so-called "performance funding" makes college presidents and the higher education community nervous. It's an understandable reaction to a concept that too often results in an overly complex outcome. Still, the basic principle of "investing the limited resources states have in the results they want" is fundamentally sound--and…

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…

Although a relatively new idea in the U.S., weighted student funding (WSF) for individual schools has a long history in the Netherlands. This country of about 16.5 million people has been using a version of WSF for all its primary schools (serving children from age 4 to 12) for 25 years. In this article we describe and evaluate the Dutch system…

In a major research analysis, Richard F. Elmore explores the problems with the structure and leadership of public education, while explaining the dangers of public funding for private schools. He urges educators to study the schools whose leaders and best practice are succeeding in meeting high standards. The report features successful efforts in…