Performance-based funding (PBF), which links state appropriations for public colleges to student outcomes, continues to be adopted and used despite evidence that it does not improve student outcomes. A primary argument for adoption is that states can leverage PBF to expand accountability when increasing funds to public colleges. But we know little regarding whether PBF is associated with measurable changes in state appropriations. Drawing on up-to-date PBF data, we ask: To what extent does PBF adoption increase state appropriations for public colleges? We do not find consistent evidence that PBF increases state appropriations to public four-year or community colleges. Although PBF is sometimes used to argue for increased state funding, this brief demonstrates these funds do not consistently materialize.
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