The Unequal Impacts of Performance-Based Funding on Institutional Resources in Higher Education

A substantial body of literature has examined the effects of PBF on college access and student success metrics, but less is known about the financial implications of PBF adoption. A serious concern pertaining to PBF in higher education is the potential for an inequitable funding system in which already under-resourced institution types, such as community colleges and minority-serving institutions, receive even fewer resources. In this brief, we leverage the InformEd States PBF Policies Dataset to examine the impact of various PBF policies on institutions’ revenue from state appropriations.

Justin OrtagusNovember 24, 2021Justin Ortagus, Robert Kelchen, Kelly Rosinger, Garam Chu, Mitchell Lingo

A National Analysis of the Impact of Performance-Based Funding on Completion Outcomes Among Underserved Students

Due to concerns about college completion rates and the rising price of higher education, a growing number of states have sought to identify ways to hold public colleges and universities accountable for their outcomes. Despite the wide reach and considerable support of performance-based funding policies throughout the United States, prior research has shown that PBF adoption does not typically lead to improvements in the completion outcomes being incentivized. Additional work has reported that PBF policies can lead to unintended consequences, such as restricting access to higher education for historically underserved students. Given that PBF policies appear to be a firmly entrenched feature of higher education finance, the conversation surrounding PBF must shift from whether PBF systems will persist to how to design and implement more effective, equitable, and evidence-based PBF policies.

Justin OrtagusMay 19, 2021Justin Ortagus, Kelly Rosinger, Robert Kelchen, Nicholas Voorhees, Garam Chu

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