CCRC: Outcomes-Based Funding Outcomes and Obstacles

^{April 1, 2014 | Western Interstate Commission for Higher Education}

A recent policy brief from the Community College Research Center summarizes research related to the increasingly popular outcomes-based funding approach many states are using in an effort to increase postsecondary productivity. "Performance Funding: Impacts, Obstacles, and Unintended Outcomes" compares the early forms of performance funding originally established in the late 1970s and early 1990s with the later and more common approaches that were established in the 2000s and continue to this day. The brief finds that although performance funding has led to some institutional changes in terms of finances and academic offerings, it has had little impact on student retention and graduation rates. To avoid potential obstacles, the brief recommends embedding outcomes-based funding into base state funding formulas, helping colleges improve their capacity to collect and analyze data, and allowing college leaders, faculty, and staff to provide input into the performance funding design process.

To view the brief, please visit: http://ccrc.tc.columbia.edu/media/k2/attachments/performance-funding-impacts-obstacles-unintended-outcomes-2.pdf

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