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Curated content on higher education presented by the Society for College and University Planning (SCUP).
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Getting a Handle on Performance-Based Funding

Society for College and University Planning (SCUP)'s insight:

Frequent SCUP speaker, Dennis P. Jones, is quoted as saying that “States are getting more sophisticated about what they’re doing and are crafting models that really reinforce institutional mission differentiation, rather than doing the same thing for everybody.” Jones is president of the National Center for Higher Education Management Systems, whose October 2013 report, “Outcomes-Based Funding: The Wave of Implementation,” examines such policies. “They’re also putting a bigger share of the allocation into outcomes-based funding.”

This author concisely organizes this brief and informative resource, from AASCU's Public Policy magazine, under the primary heading of "A More Sophisticated Model," with these bullets.


  1. An Active Role for Stakeholders
  2. Differentiate Metrics and Rewards
  3. Make the Money Meaningful
  4. Make the Penalties Reasonable
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Higher Ed Performance-based Funding and Completion Metrics

Higher Ed Performance-based Funding and Completion Metrics | SCUP Links | Scoop.it

While some schools are making changes to boost student outcomes, Finney says it is too early to know how institutions will change in the long term in response to performance-based funding. "Strong state-level data systems are necessary to determine changes in performance and to make adjustments accordingly," she says. "States vary in terms of the sophistication of their student unit record systems. This must be carefully aligned with the outcomes they hope that institutions will strive for."


"Any financial policy involves a series of trade-offs," says Tennessee's Deaton. While he and other state education leaders believe the positives of performance-based funding "far outweigh the negatives," he also says "until the model is road tested, you don't know for sure how it will work out."

Society for College and University Planning (SCUP)'s insight:

Performance-based funding and measuring outcomes. A review of the states and a clear exposition of the current status by Nancy Mann Jackson in NACUBO's Business Officer magazine.

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