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Document Number: 11121

Performance Funding: Impacts, Obstacles, and Unintended Outcomes - Over the years, 32 states have implemented some form of performance funding. This brief distinguishes between PF1.0 which involves a bonus on top of regular state funding and PF2.0 which, typically, retains enrollments as one funding driver. Based on studies of PF1.0 (PF2.0 is still in its early days), while performance funding has had immediate effects on institutional knowledge of state priorities and its own metrics, there was little evidence it brought increased state resources to implement goals. It led to intermediate changes intended to improve student outcomes, but those changes didn't necessarily work. The brief reviews obstacles and unintended impacts, then offers possible solutions. (Community College Research Center, February 2014)...

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