Policy Report

Performance funding means linking public dollars to institutional results, such as higher education. The Working Poor Families Project (WPFP) wants to be sure low-income working adults enrolled in two-year colleges don’t get shafted. This report discusses performance funding for higher education currently being promoted by several factions. 1) Policymakers demanding efficient use of scarce tax dollars. 2) State leaders aligning performance with economic development goals. 3) Philanthropic foundations, policy organizations and governmental agencies as a means of strengthening higher education. This policy brief offers the pros and cons of performance funding in higher education and what policy directions should be pursued to protect the educational needs of the working poor.

April 1, 2012

In This Report, You’ll Learn

  1. 1

    What is performance funding and how does it work?

  2. 2

    What states have tried performance funding and which have been successful.

  3. 3

    How the 2 preferred models of performance funding compare.

  4. 4

    What are the 6 promising design characteristics of “Performance Funding 2.0.

  1. 5

    Why performance funding remains a controversial idea.

  2. 6

    What 5 policy areas need attention to meet the educational needs of low-income, low-skill working adults.

Key Takeaway

performance funding and higher education outcomes

Performance funding ties higher education outcomes to state monies by course completion rather than by enrollment numbers.  

Findings & Stats

Statements & Quotations