LINKING PERFORMANCE TO FUNDING OUTCOMES AT THE STATE LEVEL FOR PUBLIC INSTITUTIONS OF HIGHER EDUCATION: Past, Present, and Future

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Abstract

This article discusses the use of performance indicators and performance-based funding by states for their systems of higher education drawing on the existing literature on the topic. The different types of mechanisms currently used by states for measuring institutional performance are described as are recent state experiences with performance indicators, including their pitfalls and limitations. Additionally, a summary of the current status of performance-based funding applications is discussed including some of the reported difficulties in implementing such funding models. Finally, the author explores the future implications of performance indicators and performance-based funding mechanisms for public higher education.

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