scholarly journals Performance-Based Funding: Equity Analysis of Funding Distribution among State Universities

2015 ◽  
Vol 1 (2) ◽  
pp. 1
Author(s):  
Robin Ann Ellis

<p>How to finance higher education remains controversial among policy makers and constituencies across the United States. Texas is not exempt from the controversy. With increasingly strained state finances, institutions of higher education and the Texas Higher Education Coordinating Board (THECB) have come under pressure to increase performance accountability, efficiency, and competitiveness. In Texas, House Bill 9 (H.B. 9) was enacted in 2011 to dedicate a portion of state funding to public colleges and universities that meet specific performance-based standards. Although H.B. 9 has been passed and signed into law, it still has not been determined how funding will be distributed or how effective it will be. This paper analyzes data from several states with similar performance-based funding standards to help bring to light to the possible effects H.B. 9 will have on Texas’ public four-year universities.</p>

Author(s):  
Mark M. Polatajko ◽  
Catherine H. Monaghan

Policy makers around the globe are responsible for decision regarding the funding of higher education and the benchmarks of success. This chapter is geared toward higher education administration and leadership, especially those who shape policy in this arena. This quantitative study examined the effectiveness in the United States of allocating state resources to state public institutions of higher education by investigating the rate of change in the current benchmarks of success, which are graduation and retention rates. The findings revealed that the method of funding was not a statistically significant predictor of either the initial status or the rate of change of graduation rate or retention rate over the eight-year period, although institution type and enrollment were. The study recommends further research of performance funding outcomes, state funding levels, and other environmental factors as a means of helping administrators and policy makers in their quest to facilitate economic progress through an educated citizenry.


2016 ◽  
Vol 11 (4) ◽  
pp. 482-498 ◽  
Author(s):  
Darby Kaikkonen

Performance-based funding (PBF) in higher education has grown in recent years as a means of institutional accountability and incentive for improving student success. Although most states have successfully implemented their respective systems, research on early funding models suggests a difficult fiscal environment can introduce tension between theory and practice of the concept. This policy brief uses the case of Washington State's redesign of the Student Achievement Initiative to describe new implications around this tension. The revision focused on using a base reallocation as the funding source in the context of diminished state resources and the importance of college buy-in. Regression analyses tested the alignment between the principles and metrics for awarding funds, which resulted in a funding model that awarded the maximum dollars related to performance versus college characteristics. Policy makers considering new or revised PBF systems can benefit from critical lessons learned from Washington State's comprehensive process and final product.


Author(s):  
Brian A Peters ◽  
Ginger Burks Draughon

Meeting the college completion goals set by the United States Government, the Lumina Foundation, and others will require the completion of an additional eight million associate's or bachelor's degrees (Kelly & Schneider, 2012). As part-time students will make up to 40 percent of college students by 2023 (NCES, 2015), educational policymakers will need to adjust their completion agenda to account for the high number of part-time students in higher education. Drawing from the literature on part-time students and performance-based funding, the authors in this chapter propose that better attention to part-time students and factors that signal their success, combined with performance-based funding that acknowledges the need for the success of more part-time students, would be a worthwhile approach for increasing the accessibility of higher education.


2019 ◽  
Vol 57 (4) ◽  
pp. 1007-1008

Sandy Baum of The Urban Institute reviews “The Impoverishment of the American College Student,” by James V. Koch. The Econlit abstract of this book begins: “Explores the reasons for increasing higher education costs, focusing on four-year public colleges and universities in the United States.”


2018 ◽  
Vol 40 (2) ◽  
pp. 115-133
Author(s):  
Frank Fernandez

Data from the 1980s suggested that small private colleges were the primary entry point to U.S. higher education for Latinas and Latinos who later earned doctorate degrees. However, I show that in the first decade of the 21st century, large percentages of doctorates originated at public universities and community colleges. I suggest that since the 1980s, we may have witnessed a shift in Latina and Latino higher education trajectories, which fits a larger historical pattern in American society—whereby women, racial, ethnic, and religious groups were once excluded but over time made their way into mainstream public education. At a time when public colleges and universities are responding to budget cuts and policy changes by becoming less accessible to low-income and minority students, policy makers should consider the importance of a well-funded, accessible public sector of higher education for preparing the next generation of Latina and Latino scholars.


2016 ◽  
Author(s):  
Elizabeth Popp Berman ◽  
Abby Stivers

The United States has been at the forefront of a global shift away from direct state funding of higher education and toward student loans, and student debt has become an issue of growing social concern. Why did student loans expand so much in the U.S. in the 1990s and 2000s? And how does organization theory suggest their expansion, and the growth of federal student aid more generally, might affect higher education as a field? In the 1960s and 70s, policy actors worked to solve what was then a central problem around student loans: banks' disinterest in lending to students. They did this so well that by 1990, a new field of financial aid policy emerged, in which all major actors had an interest in expanding loans. This, along with a favorable environment outside the field, set the stage for two decades of rapid growth. Organization theory suggests two likely consequences of this expansion of federal student loans and financial aid more generally. First, while (public) colleges have become less dependent on state governments and more dependent on tuition, the expansion of aid means colleges are simultaneously becoming more dependent on the federal government, which should make them more susceptible to federal demands for accountability. Second, the expansion of federal student aid should encourage the spread of forms and practices grounded in a logic focused on students' financial value to the organization, such as publicly traded for-profit colleges and enrollment management practices.


2017 ◽  
Vol 61 (14) ◽  
pp. 1757-1772 ◽  
Author(s):  
Nicholas Hillman ◽  
Daniel Corral

Over the past decade, 21 states have adopted performance-based funding (PBF) models tying state funding to measureable outputs. In this study, we ask whether minority-serving institutions (MSIs) experience changes in state funding levels after the introduction of PBF. On average, we find that MSIs in PBF-states lose significant funding per student compared with MSIs in non-PBF states and non-MSIs in the same PBF state. These findings signal that MSIs are, on average, negatively affected by PBF models and could ostensibly alter the missions of these institutions.


2021 ◽  
Vol 16 (1) ◽  
pp. 92-124 ◽  
Author(s):  
Jason Ward ◽  
Ben Ost

The use of performance-based funding that ties state higher education appropriations to performance metrics has increased dramatically in recent years, but most programs place at stake a small percent of overall funding. We analyze the effect of two notable exceptions—Ohio and Tennessee—where nearly all state funding is tied to performance measures. Using a difference-in-differences identification strategy along with a synthetic control approach, we find no evidence that these programs improve key academic outcomes.


2021 ◽  
Vol 23 (1) ◽  
pp. 191-200
Author(s):  
Ana Larsen ◽  
Susan Emmett

Social equity in higher education has been a priority for universities and policy makers throughout Organisation for Economic Co-operation and Development (OECD) nations for more than a decade. Limited improvement is seen among students in under-represented groups which remains a concern and for this reason social equity in higher education is presented as a wicked problem. This article will outline the steady massification of higher education where elitist discourses were largely abandoned, while social equity discourses flourished. The discussion will include key documents that have wielded great influence on discourse including The Bradley Review, Performance-Based Funding (PBF) and the Job-Ready Graduates legislation. After illuminating the Australian political context, this article will define four social equity discourses currently distinguishable in higher education literature: meritocratic, economist, social justice and human potential. Interrogation of these discourses will reveal complexity and divergence that contributes to the wicked nature of improving social equity in higher education.


2019 ◽  
Vol 12 (1) ◽  
pp. 1-10
Author(s):  
Hooman Estelami ◽  
Zixin Mao

The number of online MBA programs has increased in recent years while the demand is stabilizing. In light of this trend, the pricing of online MBA programs is an important issue for university administrators and policy makers, who are concerned about program competitiveness and public access to higher education. This study examines the drivers of tuition levels for online MBA programs. Utilizing data from 149 programs in the United States, the influence of various variables on tuition levels is empirically established. The findings indicate that residency and GMAT requirements, as well as enrollment size and student-to-faculty ratio, are important determinants of tuition for online MBA programs. The empirical framework presented in this paper allows university administrators to establish if the tuitions charged for their programs are consistent with market norms, and thereby determine the potential need for adjustment in tuition levels.


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