Performance-Based Funding for Higher Education

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Historically, many colleges and universities received state funding based on how many full-time equivalent students are enrolled at the beginning of the semester. This model provides incentives for colleges to enroll students—but not necessarily to help them graduate. A growing number of states are turning to performance-based formulas to provide some amount of funding based on indicators such as course completion, time to degree, transfer rates, the number of degrees awarded, or the number of low-income and minority graduates.  Many of the metrics used to evaluate the performance of colleges and universities are designed to produce long-term results (i.e. more degree completers). However, states also need to monitor whether institutions are actively building the necessary capacity to promote student success in the short-term. This webinar will highlight metrics and strategies to evaluate the short-term effects of performance-based funding formulas.

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  • Matthew Hawkins, chief financial officer, Indiana Commission for Higher Education
  • David Price, policy research director, Washington State Board for Community & Technical Colleges
  • Russ Deaton, associate executive director for finance and administration, Tennessee Higher Education Commission

System Requirements

PC-based attendees required: Windows® 8, 7, Vista, XP or 2003 Server
Mac®-based attendees required: Mac OS® X 10.6 or newer<
Mobile attendees required: iPhone®, iPad®, Android™ phone or Android tablet