25 states pass graduation incentives

Performance based funding for higher education institutions
Performance based funding for higher education institutions

Twenty-five states now link college funding — typically 5 percent of higher ed dollars — to performance requirements, according to a report by the National Conference of State Legislatures.

States are trying to raise graduation rates, reports the Washington Post. Some aim performance funding incentives at community colleges and others at state universities,while 16 states measure both two- and four-year institutions.

In addition to measuring graduation rates, some states give performance points for higher numbers of graduates in science, technology, engineering and math fields. Florida judges four-year universities, in part, by their graduates’ earnings.

Louisiana is linking funding to improvements in student retention at two- and four-year institutions.

Massachusetts community colleges will have to pay more attention to performance metrics than most schools in other states. The Bay State will award half of all base funding to schools that issue the highest percentage of certificates, and where students complete the highest number of entry-level math and English courses.

Five more states — Montana, Colorado, South Dakota, Georgia and Virginia — are planning performance-based funding mechanisms.

Ohio Gov. John Kasich has proposed expanding outcomes-based funding” to community colleges writes Jamie Merisotis, president of the Lumina Foundation, in the Cleveland Plain Dealer. Community colleges will be rewarded not just for enrolling students but for helping them earn “meaningful credentials.”

The plan will use “benchmarks such as how many of their students complete their courses; how many succeed in remedial math and English; how many complete associate degrees and certificates; and how many successfully transfer to four-year institutions. writes Merisotis. “Colleges will be rewarded for success with adult, low-income and minority students, and a plan is under way to include students that arrive on campus academically underprepared.”


POSTED BY Joanne Jacobs ON March 19, 2014

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Doug Flor

I like the incentives to colleges, but I like incentives to students even more. To me that would be real education reform. Provide monetary incentives to both institutions and students, not just institutions.

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