The Lumina Foundation this week released the first four of 13 papers it plans to roll out in coming months on performance-based funding in higher education. At least 35 states are either developing or using funding formulas that link support for public colleges to student completion rates, degree production numbers or other metrics. The Lumina papers look at how those policies are working, with particular interest in their impact on the completion rates of underserved student populations.
"Numerous independent research studies have found evidence that funding models with financial incentives for colleges and universities to help students complete their programs of study result in better pathways and supports for students," the foundation said in a written statement. "The need for finance systems oriented around improving student outcomes is urgent, especially for ensuring more equitable outcomes for students from all racial and ethnic backgrounds."
The first four papers give an overview of outcomes-based funding. Future papers will focus on state policy metrics, the relationship of student incentives to performance funding and institutional responses to the formulas.
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