New Recommendations for Performance-Based Funding in Wisconsin

Performance-based funding for Wisconsin’s technical colleges is at the forefront of Governor Walker’s higher education budget for the next biennium. In previous blog posts (here, here, and here), I have briefly discussed some of the pros and cons of moving to a performance-based funding model for a diverse group of postsecondary institutions.

This week, Nick Hillman, Sara Goldrick-Rab, and I released a policy brief with recommendations for performance-based funding in Wisconsin through WISCAPE. In the brief, we discuss how performance-based funding has operated in other states, as well as recommendations for how to operate PBF in Wisconsin. Our key points are the following:

(1) Performance-based funding seeks to switch the focus from enrollment to completion.

(2) Successful performance-based funding starts small and is developed via collaboration.

(3) Colleges with different missions should have different performance metrics.

(4) Multiple measures of success are necessary to reduce the possibility of perverse incentives.

Wisconsin’s proposal appears to meet some of these key points, but some concerns do remain. My primary concern is the speed with which funding will shift to performance—from 10% in 2014-15 to 100% by 2019-20. This may not be enough time for colleges to adjust their actions, so this timeline should be adjusted as needed.

Author: Robert

I am an a professor at the University of Tennessee, Knoxville who studies higher education finance, accountability policies and practices, and student financial aid. All opinions expressed here are my own.

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