New Evidence on the Evolution and Landscape of Performance Funding for Higher Education

Rosinger, Kelly Ochs; Ortagus, Justin C.; Kelchen, Robert; Cassell, Alexander; Brown, Lynneah Ciera

doi:10.1080/00221546.2022.2066269

Cited by 17 publications

(27 citation statements)

References 38 publications

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“…Base-plus funding models, in which all colleges receive the same percentage change in funding, can disproportionately harm colleges that are heavily reliant on state funding. States have increasingly turned to performance-based funding (PBF), currently in place in 32 states, that ties a portion of state funds to student outcomes (Rosinger, Ortagus, et al, 2021). Although prior research has found null or modest effects of PBF on completion (Ortagus et al, 2020), formulas that prioritize the outcomes of historically underrepresented students may protect already underfunded colleges during economic downturns (Gándara & Rutherford, 2018; Kelchen, 2018).…”

Section: Discussionmentioning

confidence: 99%

State Higher Education Funding During COVID-19: Lessons From Prior Recessions and Implications for Equity

et al. 2022

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States provide substantial support for higher education through appropriations to public colleges and universities that can be used to maintain relatively low tuition levels and funds for financial aid. Higher education often receives disproportionate cuts during recessionary periods, and it faces potentially unprecedented reductions in coming years amid a pandemic that has left some states with revenue shortfalls. How states approach higher education cuts has the potential to exacerbate existing inequities among racially minoritized and low-income students and historically underfunded institution types. In this study, we document trends in higher education funding over time and use latent profile analysis to identify distinct approaches states have taken to higher education funding. We then examine the trajectories of higher education funding within each approach over time, particularly during prior recessions. We conclude by discussing the implications of each approach for equity, particularly in light of states’ early responses to the current economic downturn.

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Section: Discussionmentioning

confidence: 99%

State Higher Education Funding During COVID-19: Lessons From Prior Recessions and Implications for Equity

et al. 2022

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“…For instance, future research might examine whether institutions that select a specific set of metrics see gains in those metrics while not showing similar gains (or even showing losses) in other metrics they did not select. Prior work indicates PBF policies in some states have become something akin to a “choose your own adventure” approach to state funding with institutions selecting one or more metrics on which they will be evaluated (Rosinger et al, 2020). This study demonstrates that such an approach may lead to gains, at least in research expenditures, in the specific metrics selected but also raises questions for future research about whether improvements will happen along other metrics as well.…”

Section: Discussionmentioning

confidence: 99%

“…Performance-based funding (PBF), which has grown in popularity and is currently used by two thirds of states, ties a portion of a public college or university’s level of state appropriations to institutional outcomes (Ortagus et al, 2020). The metrics states use to evaluate institutional performance most often include student outcomes, such as progression toward a degree and degree production, but an increasing share of PBF systems are focusing specifically on a given institution’s research activities (Rosinger et al, 2020). Research metrics for PBF-adopting states have varied over the years but often include institutions’ research expenditures from externally funded grants and broad measures of research and development (R&D) expenditures.…”

Section: Introductionmentioning

confidence: 99%

Disparate Impacts of Performance Funding Research Incentives on Research Expenditures and State Appropriations

Ortagus²,

Voorhees

et al. 2022

AERA Open

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Performance-based funding (PBF) policies with research incentives have grown in popularity over the years despite little understanding regarding whether they actually work. This study leverages a novel national data set to examine the impact of PBF research incentives on the research expenditures and total state appropriations among public 4-year institutions, with a particular focus on minority-serving institutions. We find that PBF research incentives had no impact on the total amount or relative share of total research expenditures or the total amount of state appropriations allocated to treated institutions, regardless of minority-serving institution status. PBF policies that allowed institutions to self-select or opt into including research incentives as part of their PBF formula had a positive impact on the relative share of expenditures allocated to research and total state appropriations.

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“…Only recently have researchers (e.g. Rosinger et al, 2021) examined how specific design features, such as the share of funding being dependent on performance, differ among funding schemes, meaning that not much research-based guidance on design specifics is available for policy makers. However, even when present, the development of funding schemes often ignores research evidence (G andara, 2019).…”

Section: Performance Fundingmentioning

confidence: 99%

(Dys)functionality of intentions or outcomes? Performance funding of Danish schools

Poulsen

Bukh

Christensen

2022

AAAJ

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PurposeThis paper studies how performance funding of education is perceived by principals, teachers and administrative staff and management. The dysfunctionality of performance measures often reflects how the measures prevent an organisation from achieving its goals. This paper proposes that perceptions of dysfunctionality can be analysed by separating the perceptions of the programme's intentions, of the school-level actions and of the outcomes for students.Design/methodology/approachFollowing a qualitative methodology, semi-structured interviews were conducted with teachers, school management, staff specialists and top management in a large Danish municipality when outcome-based funding was introduced.FindingsThe performance-funding programme affected teaching by changing educational priorities. Different perceptions of the (dys)functionality of intentions, actions and outcomes fuelled diverging responses. Although the performance measure was generally considered incomplete, interviewees' perceptions of the financial incentivisation and the dysfunctionality of actions depended on interpretations of the incentivisation and student-related outcomes of the programme.Research limitations/implicationsDysfunctionality can be contested; the interpretations of the intention of a performance-funding programme affect the perceived dysfunctionality of reactions. Both technical characteristics of funding schemes and administrators' and principals' mediating roles are essential for the consequences of performance funding.Originality/valueThe paper examines conditions for dysfunctionality of performance measures. We demonstrate that actions can be perceived as dysfunctional because of a measurement's intentions, actions themselves and the actions' outcomes. Further, the paper illustrates how the reception of performance funding depends on how consequences are enacted based on educators' interpretations of the (dys)functionality of intentions, actions and outcomes.

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New Evidence on the Evolution and Landscape of Performance Funding for Higher Education

Cited by 17 publications

References 38 publications

State Higher Education Funding During COVID-19: Lessons From Prior Recessions and Implications for Equity

State Higher Education Funding During COVID-19: Lessons From Prior Recessions and Implications for Equity

Disparate Impacts of Performance Funding Research Incentives on Research Expenditures and State Appropriations

(Dys)functionality of intentions or outcomes? Performance funding of Danish schools

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