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

Abstract

This article discusses the use of performanceindicators and performance-based funding by states fortheir systems of higher education drawing on theexisting literature on the topic. The different types of mechanisms currently used by states formeasuring institutional performance are described as arerecent state experiences with performance indicators,including their pitfalls and limitations. Additionally, a summary of the current status ofperformance-based funding applications is discussedincluding some of the reported difficulties inimplementing such funding models. Finally, the authorexplores the future implications of performance indicators andperformance-based funding mechanisms for public highereducation.