Who’s Tying Money to College Performance, and How?

Over the past few years, performance-based funding has picked up momentum across the nation. Yet there’s little consensus on the best way to carry out the controversial strategy, which rewards or punishes colleges for their graduation or retention rates.

A report released on Thursday by HCM Strategists, and funded by the Bill & Melinda Gates Foundation, seeks to provide some answers. Taking the form of a state-by-state breakdown, it assesses and categorizes the policies in 35 states—each of which have either put in place or begun developing outcomes-based funding models to supplement or replace traditional, enrollment-based ones.

The report divides the policies into four levels, placing each state’s system on a spectrum from rudimentary to advanced. Only two states’ funding models are considered advanced: those of Tennessee and Ohio. <Read more.>

Via Madeline Will, The Chronicle of Higher Education.

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