Outcomes-Based Funding in Postsecondary Education: An Expanded Analysis of Effects in Three States

• In Event: The Intersection of State Policy and Student Attainment

Abstract

This study examines whether the different versions of the OBF policies in Indiana, Ohio, and Tennessee had an impact on student outcomes. Different from most previous studies, this study differentiates OBF1.0 and OBF2.0 policies and takes into account the variations in state appropriation that are tied to OBF 2.0 policies in examining the potential impacts of OBF policies. The initial results show a consistent and positive relationship between OBF policies (OBF in general, or OBF 1.0, and OBF 2.0 respectively) and number of bachelor’s degree completion in four-year institutions. However, the results do not provide evidence of a positive relationship between the OBF policies and other outcomes, such as 150% time graduation rates, doctoral, master’s, associate degrees and certificates completion.

Authors

• Jian Gao, Research for Action

• Kate Callahan, Research for Action

• Daniel A. Long, Research for Action

• Kasey Meehan, Research for Action

• Lucas Westmaas, Research for Action

• Ran Liu, The University of Pennsylvania