Performance Based Funding – A new era in accountability?

PBF Many states are now reconsidering the funding by enrollment model for state appropriations' Why Now? 62% of jobs will require college education by 2018, and more than half of those will require at least a bachelor's degree? Enrollment rates have grown for decades while graduation rates remain flat Regulations and public scrutiny are focusing attention on improving student outcomes while controlling cost NATIONAL SIX-YEAR GraDUatION RaTes OF PUBLIC UNIVERSITY 66.3% According to a recent survey, Tilil 59.2% BACCALAUREATE STUDENTS“ 92% 48% 38.5% 37.7% of Colleges & Universities CFO's cite retention as their top prioritys Race/Ethnicity Adoption of PBF Initiatives6 *Feb. 2013 WA ND MT MN ME SD WI OR ID WY MI NY IA NE RI PA CT VT NH NJ MA DE MD DC IL IN ОН NV UT CO KS CA KY VA OK TN NC AR AZ NM SC MS AL GA TX LA HI AK FL AS GU MP PR VI Performance funding in place Formal discussions on performance funding Transitioning to performance funding No formal activity What can be done? Higher education institutions should adopt initiatives that are proven to increase retention and completion in a cost-effective and scalable manner. Cost-Effectiveness* of Higher Education Programs' Inside Track TRIO Talent Search Student/Faculty Ratio Merit Aid Upward Bound 0.0015 0.0073 0.0383 0.0083 0.0400 *Cost-Effectivness Ratio is calculated by dividing the estimated effect on graduation by the cost of the program. FEligibility restricted to academically qualified limited income, first generation (neither parent graduated from a 4-year college) students Leadership challenges resulting from PBF InsideTrack works with colleagues in the higher education community to raise awareness, foster dialogue and share best practices in the area of PBF. Impact and Cost-Effectiveness It's very tempting to implement multiple unproven initiatives in a scramble to improve outcomes. Admissions Many institutions choose to strengthen admission criteria, often deviating from their mission of access. Statewide Coordination Long-Team Planning Formulas change with the political landscape, making it difficult for university decision makers to conduct long-term planning. PBF drives increased competition among state institutions, undermining collaboration & coordination. Protecting Learning Most PBF formulas focus on metrics related to degree production, without explicit mention of student development & learning outcomes. To learn what you can do InsideTrack works with college and universities to improve student and institutional success. Their one-on-one student coaching, process expertise, analytics and technology have been proven to increase graduation rates by an average of 15 percent and enhance the student experience. For more information, insidetrack visit www.insidetrack.com Citations: State Funding is typically allocated to colleges based on how many full-time equivalent students they have enrolled at the beginning of the semester. That model provides incentives for colleges to enroll students but not necessarily to help them graduate. Performance Based Funding allocates funds to colleges based in part on student outcomes. 2. Complete College America "Georgetown University Center on Education and the workforce, 2009" Complete College America. N.p., n.d. Web. 07 Aug. 2013. 3. "U.S. Department of Education, NCES" Integrated Post secondary Education Data systems human resources component, Spring 2010 enrollment, and Fall 2010 completions, prepared May 2011. "The College Completion Agenda 2012 Progress Report" Completion Agenda College Board Advocacy & Policy Center. N.p., Web 26 Aug. 2013. 5. Jaschik, Scott, and Doug Lederman. "The 2013 Inside Higher Ed Survey of College and University Business Officers." CFO Survey Reveals Doubts About Financial Sustainability | Inside Higher Ed. N.p., n.d. Web. 12 Aug. 2013. 6. "Performance Funding for Higher Education." National Conference State Legislatures. February 2013. N.p., n.d. Web. 09 Aug. 2013. 7. "American Enterprise Institute." Addressing the Declining Productivity of Higher Education Using Cost-effectiveness Analysis. N.p., n.d. Web. 13 Aug. 2013. 1. 4. African American American Indian Asian Hispanic White