Performance-Based Funding for Higher Ed on Rise in Wake of Funding Cuts

Performance-Based Funding for Higher Ed on Rise in Wake of Funding Cuts

Performance-based funding for higher education has emerged as a top policy recommendation for addressing concerns ranging from accountability and affordability to helping keep states economically competitive. In states that already have performance-based funding in place, such as Pennsylvania and Ohio, efforts to revise and expand the programs are underway. Ahead of the upcoming legislative sessions, governors in Texas and Wisconsin called for education reform tied to outcomes, including how well colleges and universities are meeting the states’ workforce needs, especially for high-skilled, in-demand jobs.

A recent report from the Center for American Progress looked at case studies from six states and found that after an initial wave of ineffective models, performance-based funding has begun to gain popularity again, but this time with an emphasis on rewarding progress over completion. The author refers to the new policies as “performance-based funding 2.0.” Read more…


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