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There is gap in research addressing the relationship between expenditures and degree attainment at institutions with performance-based funding (PBF) models. This study asked the following research question: Does increasing state appropriation of the expenditure categories increase degree attainment at PBF institutions? Using the IPEDS dataset, multiple linear regressions were conducted to examine whether increasing funds in expenditure categories impacted degree attainment at PBF institutions. Results indicate that an increase in expenditure funds did not have significant impact on degree attainment. Nonetheless, PBF institutions base their funding models on this idea. This drives a concluding question and discussion: funds are allocated based on performance, but is performance really relying on these allocations?