Performance Funding: What Policy Instruments and Theories of Action Underlie This Popular Higher Education Policy?

• In Event: Roundtable Session 6
  In Roundtable Session: State Policies for Performance Funding and College Readiness

Abstract

This paper draws on over 150 interviews with policymakers, campus administrators, and faculty in Indiana, Ohio, and Tennessee to examine the theories of action underlying Performance Funding 2.0 programs, and the impact of such programs on institutional budgets, awareness of state priorities, awareness of institutional performance, and institutional capacity to engage in self-assessment. Though the impact of performance funding on budgets is limited, financial incentives have motivated efforts to raise student outcomes. Substantial gaps, however, exist between administrators and faculty on awareness of programs goals and methods, as well as of their own campus’ performance on program indicators. Though performance funding depends on the capacity of institutions to conduct self-analyses and follow through, programs are noticeably lacking in capacity assistance.

Authors

• Vikash Reddy, Teachers College, Columbia University

• Hana Lahr, Teachers College, Columbia University

• Kevin J. Dougherty, Teachers College, Columbia University

• Sosanya M. Jones, Southern Illinois University - Carbondale

• Rebecca S. Natow, Teachers College, Columbia University

• Lara Pheatt, Teachers College, Columbia University