States try performance funding

Concerned about low graduation rates at community colleges, a growing number of states are experimenting with performance-based funding models, writes Richard Kazis on the Jobs for the Future blog.

Dubbed “Performance Funding 2.0” because they are trying to improve upon the limited success of higher education performance funding models of earlier periods, these new models allocate some percentage of state support on the basis of institutions’ progress on improving student retention, progression, or completion of credentials, not just on enrollment levels.

However, it’s not clear “whether performance-based funding can move the needle on student completion.”