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The Impact Of Performance-Based Funding On Graduation Rates At Texas State Technical College, Adam Hutchison

Educational Foundations & Leadership Theses & Dissertations

As states legislatures seek improved results and increased accountability from higher education institutions, performance-based funding is frequently used as fiscal policy to determine state appropriations. Performance-based funding (PBF) determines an institution’s appropriation by its attainment of metrics, usually student outcomes. Early versions of PBF provided incentive funding for institutions that exceeded outcome goals, but later formulas included more intermediate metrics and required institutions meet targets to receive baseline funding. Prior studies examined the impact of PBF on retention and graduation rates at institutions through state-to-state comparisons and explored the political implications of PBF policies. Researchers found states using PBF did …