Does Performance-Based Funding Increase State Appropriations for Public Colleges?

• In Event: AERA Roundtable Session Thursday 2:15 pm - Gold 1
  In Roundtable Session: The Role of the State Policy in Shaping Equity, Access, and Resources

Abstract

Performance-based funding (PBF), which links state appropriations for public colleges to student outcomes, continues to be adopted and used despite evidence that it does not improve student outcomes. A primary argument for adoption is that states can leverage PBF to expand accountability when increasing funds to public colleges. But we know little regarding whether PBF is associated with measurable changes in state appropriations. Drawing on up-to-date PBF data, we ask: To what extent does PBF adoption increase state appropriations for public colleges? We do not find consistent evidence that PBF increases state appropriations to public four-year or community colleges. Although PBF is sometimes used to argue for increased state funding, this brief demonstrates that these funds may not materialize.

Authors

• Kelly Ochs Rosinger, Pennsylvania State University

• Junghee Choi, University of Oklahoma

• Justin C. Ortagus, University of Florida

• Robert Kelchen, University of Tennessee

• Annie Everett, Pennsylvania State University

• Muhammad Kara, Pennsylvania State University