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Performance Funding for Higher Education

Author

Listed:
  • Kevin J. Dougherty
  • Sosanya M. Jones
  • Hana Lahr
  • Rebecca S. Natow
  • Lara Pheatt
  • Vikash Reddy

Abstract

Since the 1970s, federal and state policy-makers have become increasingly concerned with improving higher education performance. In this quest, state performance funding for higher education has become widely used. As of June 2014, twenty-six states were operating performance funding programs and four more have programs awaiting implementation. This article reviews the forms, extent, origins, implementation, impacts (intended and unintended), and policy prospects of performance funding. Performance funding has become quite widespread with formidable political support, yet it has also experienced considerable implementation vicissitudes, with many programs being discontinued and even those that have survived encountering substantial obstacles and unintended impacts. Although evidence suggests that performance funding does stimulate colleges and universities to substantially change their policies and practices, it is yet unclear whether performance funding improves student outcomes. The article concludes by advancing policy recommendations for addressing the implementation obstacles and unintended side effects associated with performance funding.

Suggested Citation

  • Kevin J. Dougherty & Sosanya M. Jones & Hana Lahr & Rebecca S. Natow & Lara Pheatt & Vikash Reddy, 2014. "Performance Funding for Higher Education," The ANNALS of the American Academy of Political and Social Science, , vol. 655(1), pages 163-184, September.
    • Handle: RePEc:sae:anname:v:655:y:2014:i:1:p:163-184
    DOI: 10.1177/0002716214541042
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    References listed on IDEAS

    as
    1. Helen F. Ladd & Edward B. Fiske, 2008. "Handbook of Research in Education Finance and Policy," Education Finance and Policy, MIT Press, vol. 3(1), pages 149-150, January.
    2. Amanda Rutherford & Thomas Rabovsky, 2014. "Evaluating Impacts of Performance Funding Policies on Student Outcomes in Higher Education," The ANNALS of the American Academy of Political and Social Science, , vol. 655(1), pages 185-208, September.
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    Cited by:

    1. William Doyle & William Zumeta, 2014. "State-Level Responses to the Access and Completion Challenge in the New Era of Austerity," The ANNALS of the American Academy of Political and Social Science, , vol. 655(1), pages 79-98, September.

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