Study to Examine Performance-Based Financial Rewards for State Colleges
Many states tie a portion of funding of higher education institutions directly to those institutions' performance in retaining students, student learning, graduation, job placement and other indicators. One of the great puzzles about such performance funding, however, is that it has proved both popular and unstable. Between 1979 and 2007, 10 of the 25 states that enacted performance funding subsequently dropped it. Moreover the states that have retained performance funding often have sharply cut the level of that funding and substantially changed the means of allocating it.
Kevin Dougherty, Associate Professor of Higher Education at Teachers College,