Editor's notes: Performance funding in tennessee comes of age

1994 ◽  
Vol 6 (4) ◽  
pp. 3-14
Author(s):  
Trudy W. Banta
Keyword(s):  
Performance Funding

Equity or Disparity: Do Performance Funding Policies Disadvantage 2-Year Minority-Serving Institutions?

2018 ◽  
Vol 46 (3) ◽  
pp. 288-315 ◽  
Author(s):  
Amy Y. Li ◽  
Denisa Gándara ◽  
Amanda Assalone
Keyword(s):  
Developmental Education ◽  
Performance Metrics ◽  
Underrepresented Students ◽  
Performance Funding ◽  
State Funding ◽  
Retention Rates ◽  
Gateway Courses ◽  
Funding Policies ◽  
Funding Formulas ◽  
Minority Serving Institutions

Objective: We investigate whether performance funding—an increasingly prevalent state policy that allocates appropriations based on outcomes that prioritize retention and completion—places minority-serving institutions (MSIs) at a financial disadvantage due to these institutions serving a greater proportion of historically underrepresented students. Method: Using data from 2004-05 to 2014-15 within Texas and Washington, we compare state funding allocations to 2-year institutions designated as MSIs versus non-MSIs, before and after performance funding policies are implemented. We additionally compare funding allocations for each performance metric. Results: On average, MSIs in Texas and Washington are allocated the same or less in per-student state funding after performance funding compared to non-MSIs. MSIs in Texas are advantaged in performance metrics for transfers and for gateway courses in math (credit-bearing courses that serve as a “gateway” to continued study), and MSIs in Washington are advantaged in developmental education courses. However, MSIs are typically disadvantaged in metrics for degree completions. Conclusion: Our findings suggest that MSIs in Texas and Washington are not financially disadvantaged due to performance funding because the funding formulas in both states incentivize milestones in addition to outputs. We recommend that policy makers consider incorporating performance metrics for developmental education and gateway courses in addition to retention rates and degree completions, and tailor metrics to the student population of institutions to mitigate the potentially inequitable funding consequences of performance funding policies.

scholarly journals Transatlantic Lessons on Higher Education Access and Completion Policy

2018 ◽  
pp. 2-4
Author(s):  
Kevin J. Dougherty ◽  
Claire Callender
Keyword(s):  
Higher Education ◽  
Ethnic Differences ◽  
Information Provision ◽  
The United States ◽  
Performance Funding ◽  
Higher Education Access ◽  
Education Access ◽  
Higher Education Admissions ◽  
Student Information ◽  
Racial Ethnic

This article explores what England and the United States can learn from each other withregard to reducing social class and racial/ethnic differences in higher education accessand completion. It focuses on seven policy strands: student information provision;outreach from higher education institutions; student financial aid; affirmative action orcontextualization in higher education admissions; higher education efforts to improveretention and completion; performance funding; and degree of reliance onsubbaccalaureate institutions.

Performance Funding Policy Effects on Community College Outcomes: Are Short-Term Certificates on the Rise?

2017 ◽  
Vol 46 (1) ◽  
pp. 3-39 ◽  
Author(s):  
Amy Y. Li ◽  
Alec I. Kennedy
Keyword(s):  
Postsecondary Education ◽  
Performance Metrics ◽  
State Level ◽  
Cost Effective ◽  
Performance Funding ◽  
Funding Policy ◽  
Level Control ◽  
Medium Term ◽  
Short Term ◽  
The Impact

Objective: Performance funding (PF) policies allocate a portion of state funding to colleges based on student outcomes. This study is the first to account for policy type and design differences, and explores the impact of performance funding on three levels of credential completions: short-term certificates, medium-term certificates, and associate’s degrees. Method: We create a panel dataset of 751 two-year colleges from years 1990 to 2013 using data from the Integrated Postsecondary Education Data System. We conduct a series of analyses using difference-in-differences with the inclusion of college- and state-level control variables. Results: We find that, on average, performance funding produces no significant changes in completions of any of the three credentials. Policy types characterized by a greater proportion of funding tied to the base budget, mission differentiation in performance metrics, inclusion of underrepresented student metrics, and longer periods of operating years produce an increase in short-term certificates, no significant change in medium-term certificates, and a decrease in associate’s degrees. Contributions: This study’s findings suggest that because awarding more short-term certificates is a relatively quick and cost-effective way to capture performance funds, colleges might be engaging in a path of least resistance by churning out short-term certificates and redirecting focus away from associate’s degrees, which is concerning given that short-term certificates generally offer limited labor market benefits compared to medium-term certificates and associate’s degrees. Our results also underscore the importance of policy designs in explaining differential impacts on credential completion.

Sign in / Sign up

Export Citation Format

Share Document