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Performance Funding for Higher Education (Paperback)
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Performance Funding for Higher Education (Paperback)
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Seeking greater accountability in higher education, many states
have adopted performance funding, tying state financial support of
colleges and universities directly to institutional performance
based on specific outcomes such as student retention, progression,
and graduation. Now in place in over thirty states, performance
funding for higher education has been endorsed by the US Department
of Education and major funders like the Gates and Lumina
foundations. Focusing on three states that are regarded as leaders
in the movement-Indiana, Ohio, and Tennessee- Performance Funding
for Higher Education presents the findings of a three-year research
study on its implementation and impacts. Written by leading
authorities and drawing on extensive interviews with government
officials and college and university staff members, this book *
describes the policy instruments states use to implement
performance funding; * explores the organizational processes
colleges rely on to determine how to respond to performance
funding; * analyzes the influence of performance funding on
institutional policies and programs; * reviews the impacts of
performance funding on student outcomes; * examines the obstacles
institutions encounter in responding to performance funding
demands;* investigates the unintended impacts of performance
funding. The authors conclude that, while performance funding
clearly grabs the attention of colleges and leads them to change
their policies and practices, it also encounters major obstacles
and has unintended impacts. Colleges subject to performance funding
are hindered in posting good results by inappropriate performance
measures, insufficient organizational infrastructure, and the
commitment to enroll many students who are poorly prepared or not
interested in degrees. These obstacles help explain why
multivariate statistical studies have failed to date to find a
significant impact of performance funding on student outcomes, and
why colleges are tempted to resort to weakening academic quality
and restricting the admission of less-prepared and less-advantaged
students in order to improve their apparent performance. These
findings have wide-ranging implications for policy and research.
Ultimately, the authors recommend that states create new ways of
helping colleges with many at-risk students, define performance
indicators and measures better tailored to institutional missions,
and improve the capacity of colleges to engage in organizational
learning.
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