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Current Developments in Community College Performance Funding
Authors:Mark M D'Amico  Janice N Friedel  Stephen G Katsinas  Zoë M Thornton
Institution:1. Department of Educational Leadership , The University of North Carolina at Charlotte , Charlotte , North Carolina , USA mmdamico@uncc.edu;3. Department of Educational Policy and Leadership Studies , Iowa State University , Ames , Iowa , USA;4. Education Policy Center , University of Alabama , Tuscaloosa , Alabama , USA;5. School of Education , Iowa State University , Ames , Iowa , USA
Abstract:Since the initiation of performance funding in Tennessee in the late 1970s, approximately 30 states have, at some point, attempted a funding model that includes performance on a set of indicators. The purpose of the present study was to capture the current status of performance funding in public statewide community college systems and to assess which performance indicators were collected at the state level. Data were obtained through the 2012 Survey of Finance and Access Issues conducted by the Education Policy Center at the University of Alabama. The survey was administered to the National Council of State Directors of Community Colleges, and 50 responses were obtained from 49 states. Not every survey respondent answered each survey item. Findings showed that 19 states used performance funding for community colleges, with six of those states allocating at least 10% of state funds based on performance. An analysis of indicators captured at the state level (not exclusively for performance funding) showed a decline of emphasis on process indicators and greater emphasis on outputs. The performance-based distribution of base funding and the inclusion of output measures that capture intermediate indicators of success are consistent with the principles of Performance Funding 2.0, a new form of performance funding recently discussed in the literature. Future research should include tracking the current findings over time and expanding the existing literature on whether performance funding influences outcomes.
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