Exploring the Impacts of Performance-Based Funding Policies Across Institutions

• In Event: Sheraton Roundtable Session Two
  In Roundtable Session: State Policies and Funding Reforms (Table 2)

Abstract

To improve public higher education institutions' student outcomes, policymakers linked state funding to the institutional performance by implementing performance-based funding (PBF) policies. Countless critique points out that PBF might hurt traditionally underserved students by restricting their access and result in funding disparities among different types of institutions. Compared to equity concerns related to students within institutions, disparities across institutions did not attract attention. This study employed the generalized difference-in-differences (GDiD) method to examine how PBF causes various responses across institutions and further impacts student outcomes. Preliminary results indicated that financial priorities are subject to institutions’ type and depend on state appropriation. Yet, institutions do not have much difference in cream-skimming behaviors. PBF impacts institutions’ performance through their various responses.

Author

• Shiya Liu, Ohio University
  Presenting Author