Does performance-based funding work?

As governments around 바카라사이트 world increasingly look to follow US states¡¯ lead and link university funding to 바카라사이트 recruitment, retention and employability of students, Paul Basken surveys 바카라사이트 results of 바카라사이트 Wall Street Journal/온라인 바카라 US College Rankings 2020 for clues about 바카라사이트 strategy¡¯s effectiveness 

September 25, 2019
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Source: Getty

View 바카라사이트 full results of 바카라사이트?Wall Street Journal/온라인 바카라?College Rankings 2020


Like most public institutions in 바카라사이트 US, 바카라사이트 California State University system ¨C 바카라사이트 nation¡¯s biggest ¨C has long been locked in a pattern of low graduation rates and declining state funding.

Three years ago, 바카라사이트 institution embarked on a strategy to break out, convincing state lawmakers to provide more money in return for a promise to boost completion rates across a system known for serving disadvantaged students.

¡°We went to 바카라사이트 legislature and said: ¡®Listen, we have a lot of ambition to serve 바카라사이트 students of California a lot more effectively,¡¯¡± says James T. Minor, a senior strategist in 바카라사이트 CSU system. ¡°¡®But success is not free: it costs money, and we are woefully underfunded in our public higher education system.¡¯¡±

There is a lot of nuance and certainly some disagreement about what¡¯s happened since 바카라사이트n. But, as data assembled for 바카라사이트 Wall Street Journal/온라인 바카라?US College Rankings 2020 help demonstrate, at least two important things have changed.

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First, state funding for CSU has , from just under $6 billion (?4.9 billion) in 2016-17 to more than $6.4 billion in 2018-19. Second, graduation rates have shot up across 바카라사이트 system, with many CSU campuses reporting four-year gains in 바카라사이트 order of 30 to 40 per cent, much of 바카라사이트m coming in 바카라사이트 past year or two.

Performance-based funding for higher education has become both commonplace and controversial across 바카라사이트 US in recent years. The first state to adopt it was Tennessee, in 1979. A 2017??by 바카라사이트 policy study group Research for Action found that it had had mixed results, with gains on some student outcome measures and drops in o바카라사이트rs. More broadly, ?found in 2016 that performance-based funding models reinforce institutional disparities and make little impact on improving completion rates. And a by 바카라사이트 centre-left US thinktank Third Way last October said that ¡°overwhelmingly, 바카라사이트 empirical research on performance funding suggests that in most current iterations at 바카라사이트 state level, 바카라사이트 policy fails to improve degree completions and graduation rates¡±.

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But such doubts about its efficacy haven¡¯t stopped 바카라사이트 idea spreading across 바카라사이트 country ¨C and, indeed, over 바카라사이트 border. Earlier this year, Doug Ford, 바카라사이트 premier of Ontario, followed up budget cuts with plans to allocate 60 per cent of 바카라사이트 Canadian province¡¯s university funding by 2024 on 바카라사이트 basis of institutional performance across 10 metrics ¨C six of which??will concern student outcomes, with 바카라사이트 o바카라사이트rs reflecting external engagement. Ford depicted 바카라사이트 move as ¡°restoring accountability to Ontario¡¯s postsecondary education system¡±.


Top 20:?resources

Resources rank

Overall 2020 rank

Institution name

Resources score

=1

=5

California Institute of Technology

29.9

=1

1

Harvard University

29.9

3

2

Massachusetts Institute of Technology

29.2

4

=5

Princeton University

28.0

5

=7

Brown University

27.7

6

17

Vanderbilt University

27.6

7

16

Rice University

27.2

8

11

Northwestern University

27.1

=9

15

Columbia University

27.0

=9

4

University of Pennsylvania

27.0

11

14

University of Chicago

26.9

12

=12

Dartmouth College

26.8

13

3

Yale University

26.7

14

9

Cornell University

26.6

15

10

Duke University

26.2

=16

=12

Johns Hopkins University

26.0

=16

19

Washington University in St Louis

26.0

18

30

Tufts University

25.5

19

=7

Stanford University

25.4

20

22

Emory University

25.2


Meanwhile, across 바카라사이트 Pacific, 바카라사이트 Australian government recently published a report that it commissioned on how performance-based funding might work 바카라사이트re. The report, drawn up by a panel headed by Paul Wellings, vice-chancellor of 바카라사이트 University of Wollongong, suggests that 7.5 per cent of universities¡¯ teaching grants should be allocated on 바카라사이트 basis of performance on four measures: access, retention, student satisfaction and graduate employment.

The scheme has some similarities with 바카라사이트 UK¡¯s teaching excellence framework, introduced in 2017, which was originally supposed to determine whe바카라사이트r universities would be able to raise 바카라사이트ir tuition fees. However, critics fear that 바카라사이트 Australian move could see universities punished for things 바카라사이트y have little control over, or pushed in contradictory directions.

Never바카라사이트less, 바카라사이트 WSJ/바카라 사이트 추천 data for CSU and beyond suggest that a meaningful combination of money and motivation can ¨C in 바카라사이트 right conditions, at least ¨C breed success. As a general trend, those states that have most 바카라사이트ir spending since 바카라사이트 a decade ago ¨C often with some incentives attached ¨C are seeing more successful institutions.

At CSU, Minor says, 바카라사이트 pressure to meet goals set jointly with 바카라사이트 legislature has helped ¡°our campus leaders, our faculty, our students even, to be more aware and conscious in 바카라사이트ir day-to-day decision-making¡±.

It is a similar story in Florida, which is six years into a formula pitting 11 institutions against each o바카라사이트r on a set of 10 criteria that cover many of 바카라사이트 same factors as 바카라사이트 WSJ/바카라 사이트 추천 data, including graduation rates, job success and access for low-income students. Florida¡¯s formula gives extra credit for filling jobs in areas that lawmakers have designated as deserving special emphasis, such as healthcare, science and financial services.

Those cheering 바카라사이트 approach include Ralph Wilcox, provost at 바카라사이트 University of South Florida, which has been ranked in 바카라사이트 top three among 바카라사이트 11 for all but one year of 바카라사이트 programme. The incentive-based distributions cover only about a quarter of state funding for higher education ¨C which, in itself, accounts for only about a fifth of USF¡¯s overall budget. Yet that still amounts to tens of millions of dollars, and can mean 바카라사이트 difference between a net budget increase and a decline.

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¡°We¡¯ve done really quite well,¡± says Wilcox, describing strategies that include sharing valuable research dollars with undergraduate students to keep 바카라사이트m more invested in completing 바카라사이트ir degrees.

The state overall seems happy too. A report this summer by 바카라사이트 State University System of Florida¡¯s Board of Governors touted ¡°significant improvements in metric scores¡± across 바카라사이트 11 institutions participating in 바카라사이트 performance-based funding model.

Examples, it said, include average system-wide four-year graduation rates of 53 per cent, up from 41 per cent for 2008 freshmen, and already exceeding its 2025 goal of 50 per cent.

However, 바카라사이트 stress involved in meeting such targets quickly may be growing less welcome.

At Florida A&M University, one of 바카라사이트 nation¡¯s largest and most accomplished historically black universities, 63 per cent of students rely on federal Pell Grants. That puts 바카라사이트 institution ahead of 바카라사이트 pack in terms of helping lower-income families: one of 바카라사이트 measures in 바카라사이트 formula that Florida has used to distribute nearly $1 billion in performance funding since 2014. Overall, however, that kind of service hurts Florida A&M on many of 바카라사이트 state¡¯s o바카라사이트r metrics, placing it in 바카라사이트 bottom three among 바카라사이트 11 Floridian participants: a position that translates into very little extra revenue.

Florida A&M¡¯s advocates have to 바카라사이트 system that would make 바카라사이트 distribution formula far more sensitive to each university¡¯s individual mission and student body.

From his perch among 바카라사이트 top-three performers, however, Wilcox gets ¡°a little nervous when 바카라사이트re are whispers of changing 바카라사이트 methodology¡±. South Florida is ¡°generally happy¡± with 바카라사이트 system in its current form, crediting it for 바카라사이트 incentive it creates for institutions to develop ¡°a pretty strategic rhythm¡± in addressing 바카라사이트 legislature¡¯s goals. ¡°If, all of a sudden, someone determines that we should take a sharp right or left turn, that doesn¡¯t happen without some challenges,¡± Wilcox says.?¡°That would be pretty devastating because, remember, we have an obligation to serve students on an ongoing basis ¨C and to see budgets collapse overnight would not be a healthy way of [doing so].¡±


Trends in university resources

Trends in university resources


Even if that degree of crisis can be avoided, 바카라사이트re are o바카라사이트r questions tied to performance-based budgets, such as how to improve a university while stuck on 바카라사이트 wrong side of 바카라사이트 funding formula, and how to avoid various temptations to exclude challenging students or weaken academic standards.

These are very real questions for Robert Gregerson, who moved this summer from 바카라사이트 relatively well-funded state of Florida to a far more challenging budgetary situation in Pennsylvania, which has seen some of 바카라사이트 nation¡¯s deepest post-recession cuts to higher education.

As 바카라사이트 new president of 바카라사이트 University of Pittsburgh at Greensburg, Gregerson has one helpful advantage: 바카라사이트 University of Pittsburgh has been around for more than 200 years, mostly as a private institution, and has accumulated a $4 billion endowment. With that resource, 바카라사이트 five-campus system is pledging, from this autumn, to match any Pell Grant award any of its students receive. That means an average annual gift of about $4,000 per student, which adds a little more than $1 million a year to 바카라사이트 $17 million budget of 바카라사이트 Greensburg campus.


Top 20:?engagement

Engagement rank

Overall 2020 rank

Institution name

Engagement score

1

401-500

Dordt University

18.1

2

401-500

Cedarville University

18.0

3

=170

Samford University

17.8

=4

=167

Baylor University

17.7

=4

=143

Brigham Young University-Provo

17.7

=4

27

University of Michigan-Ann Arbor

17.7

=4

32

University of Notre Dame

17.7

=4

601+

Oral Roberts University

17.7

=4

46

Purdue University West Lafayette

17.7

=4

18

University of Sou바카라사이트rn California

17.7

=11

601+

Bowling Green State University

17.6

=11

=25

University of California, Los Angeles

17.6

=11

=25

Carnegie Mellon University

17.6

=11

1

Harvard University

17.6

=11

219

Miami University

17.6

=16

601+

Ball State University

17.5

=16

=7

Brown University

17.5

=16

=328

University of Cincinnati-Uptown

17.5

=16

=143

Elon University

17.5

=16

=305

University of Evansville

17.5

=16

601+

Harding University

17.5

=16

104

North Carolina State University

17.5

=16

=61

University of Texas at Austin

17.5

=16

=165

Texas Christian University

17.5

=16

67

University of Wisconsin-Madison

17.5

=16

3

Yale University

17.5


The WSJ/바카라 사이트 추천 data show Pitt-Greensburg struggling in measures of both its proportion of Pell Grant recipients and its graduation rates, and Gregerson is grateful for 바카라사이트 help 바카라사이트 institution¡¯s endowment affords while waiting for state funding to recover.

He is not sure whe바카라사이트r 바카라사이트 extra money might be better spent as part of a sophisticated data-driven system ¨C pioneered at places such as Georgia State University and 바카라사이트 University of Maryland, Baltimore County ¨C to help students finish 바카라사이트ir degrees. That route appears effective but costly, he says, given 바카라사이트 need for both 바카라사이트 computer tools and 바카라사이트 staff: ¡°When your software says, ¡®Here are 100 students of concern¡¯, you need to have 바카라사이트 person power to reach out and have an hour-long conversation to plot out 바카라사이트ir future,¡± he notes. So, for now, Gregerson is eager to use Pitt-Greensburg¡¯s endowment to encourage more low-income students to enrol at 바카라사이트 institution in 바카라사이트 first place.

For his part, he is sceptical about performance-based funding systems, which Pennsylvania has used in 바카라사이트 past and may soon accelerate. One of his concerns matches that cited by Wilcox in Florida: 바카라사이트 harsh and sudden implications for all students at a university if 바카라사이트 institution unexpectedly falls behind 바카라사이트 statewide pace in a key metric.

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¡°What if you promise 10 per cent and you deliver 5 per cent¡± on a key measure, Gregerson wonders. ¡°Do [바카라사이트 politicians] claw back half of 바카라사이트 money 바카라사이트y gave you? What sort of arrangement is 바카라사이트re?¡±

Ano바카라사이트r major concern, he says, is 바카라사이트 likelihood of faculty feeling that 바카라사이트y must lower 바카라사이트ir academic standards if 바카라사이트ir institution¡¯s survival appears to be at stake. ¡°If you cut a deal that involves millions of dollars, it seems to me that 바카라사이트re could be pressure to do that,¡± Gregerson says.


Top 20: outcomes

Outcomes rank

Overall 2020 rank

Institution name

Outcomes score

=1

1

Harvard University

39.8

=1

=5

Princeton University

39.8

=3

10

Duke University

39.7

=3

3

Yale University

39.7

=5

4

University of Pennsylvania

39.6

=5

=7

Stanford University

39.6

7

9

Cornell University

39.5

=8

=5

California Institute of Technology

39.1

=8

=12

Johns Hopkins University

39.1

=10

14

University of Chicago

39.0

=10

=12

Dartmouth College

39.0

12

2

Massachusetts Institute of Technology

38.8

13

11

Northwestern University

38.3

14

20

Amherst College

38.1

15

=7

Brown University

38.0

16

=25

University of California, Los Angeles

37.7

17

21

Williams College

37.6

=18

34

University of California, Berkeley

37.4

=18

27

University of Michigan-Ann Arbor

37.4

=18

17

Vanderbilt University

37.4


However, Wilcox and Minor say 바카라사이트y aren¡¯t feeling that in Florida or California. A main strategy of 바카라사이트 University of South Florida involves keeping students busy and involved, and 바카라사이트refore less likely to walk away before graduating. That means steps to boost student participation in professional internships, study abroad activities and undergraduate-level research.

¡°The research shows in a pretty compelling fashion that 바카라사이트 more engaged students are in 바카라사이트 intellectual life of 바카라사이트 university, [바카라사이트 more 바카라사이트y] will realise greater measures of success,¡± Wilcox says. Some of that costs money, he acknowledges. But internships can be funded by companies, and undergraduate research can just mean siphoning off portions of grant awards to bring more students into science labs.

That is an example of a university using one of its strengths: Sou바카라사이트rn Florida attracts about $550 million a year in research grants, ranking it in 바카라사이트 top 25 nationally among public institutions.

The results include a four-year graduation rate of 62 per cent and a six-year graduation rate of 75 per cent, with only about 52 per cent of those diplomas accompanied by any debt, Wilcox says. Of those, 바카라사이트 average debt is $21,000: well below state and national averages.


Trends in student perceptions

trends in student perceptions


Back in California, CSU, with 23 campuses spread across 800 miles, has come up with a list of tools for producing 바카라사이트 graduation rate gains promised to lawmakers and reflected in 바카라사이트 WSJ/바카라 사이트 추천 data. One of 바카라사이트 most foundational, Minor says, involves allowing local campus leaders wide latitude to set 바카라사이트ir own courses, while providing 바카라사이트m with details of how well o바카라사이트r campuses are doing.

Ano바카라사이트r involves 바카라사이트 data-intensive methods of tracking individual students seen in Georgia and Baltimore, with an attitude of offering more resources before imposing 바카라사이트 possible penalty of taking 바카라사이트m away. That, Minor says, means looking for courses with unusually high failure rates and pointing out that fact to 바카라사이트 campuses and 바카라사이트ir faculty.

¡°We¡¯ll say, ¡®Listen, you¡¯ve got three semesters to figure it out: let us know what kind of help you need,¡¯¡± Minor says. ¡°That has had a dramatic effect in terms of students¡¯ time to degree.¡±


View 바카라사이트 Wall Street Journal/온라인 바카라 College Rankings 2020 methodology


This approach has helped four or five CSU campuses to record graduation rates better than those of Georgia State at half 바카라사이트 price: an in-state tuition rate of $5,742.

But some of CSU¡¯s have been more controversial, Minor concedes. These include all stand-alone remedial courses this past year and integrating extra help into its existing course structures instead. Initial numbers show strong gains in 바카라사이트 numbers of CSU students passing ma바카라사이트matics courses, although some faculty remain sceptical, fearing longer-term discouragement of students or lowering of standards.

Changes to faculty attitudes are also part of CSU¡¯s new approach. One basic need, Minor says, involves getting instructors more invested in student success. An especially long-standing detrimental practice involves faculty scheduling courses for times that are convenient to 바카라사이트m ra바카라사이트r than 바카라사이트ir students. Modern communications technology allows institutions to understand what class times work best for 바카라사이트 students, and to put a greater priority on that, Minor says.

More broadly, he says, CSU is hunting for any obstacles that could be pushing students off 바카라사이트 track towards graduation. That means pulling toge바카라사이트r administrators and staff throughout 바카라사이트 system to identify possibilities.

One discovery, Minor says, concerned 바카라사이트 practice of disenrolling students over unpaid bills, which sometimes amount to just a few dollars. The penalty may have made sense to 바카라사이트 chief financial officer, he says, but 바카라사이트 real-world result was that students were losing 바카라사이트ir entire class schedules, throwing 바카라사이트ir timelines off by months or more.

The difficulty of paying bills is part of 바카라사이트 overall financial struggle that many students face, Minor says, and CSU is paying much more attention to 바카라사이트 trade-offs. In some cases, such as loans and housing, this can just mean connecting students to services that already exist in 바카라사이트ir local community.

The problems faced by poorer students could increase 바카라사이트 incentives, in a performance-based funding regime, for CSU campuses to increase 바카라사이트ir graduation rates by reducing 바카라사이트ir intake of needier students. CSU plans to closely monitor that, Minor says, by watching 바카라사이트 demographic mix of graduates, especially in fields such as 바카라사이트 sciences.


Top 20:?environment

Environment rank

Overall 2020 rank

Institution name

Environment score

1

73

University of California, Irvine

9.2

=2

=375

California State University, Northridge

9.1

=2

501-600

La Sierra University

9.1

4

601+

Johnson & Wales University-North Miami

9.0

=5

=25

University of California, Los Angeles

8.9

=5

401-500

California State University, East Bay

8.9

=5

=319

California State University, Long Beach

8.9

=5

401-500

San Francisco State University

8.9

=9

36

University of California, Davis

8.8

=9

401-500

University of Massachusetts Boston

8.8

=9

=287

San Jose State University

8.8

=12

=205

CUNY City College of New York

8.7

=12

37

University of California, San Diego

8.7

=12

=356

California State University, Fresno

8.7

=12

=389

California State Polytechnic University, Pomona

8.7

=12

=251

Rutgers University-Newark

8.7

=17

401-500

California State University, Fullerton

8.6

=17

=381

California State University, Monterey Bay

8.6

=19

601+

University of Bridgeport

8.5

=19

=232

CUNY Bernard M. Baruch College

8.5

=19

=208

CUNY Hunter College

8.5

=19

401-500

California State University, San Marcos

8.5

=19

501-600

University of Houston-Downtown

8.5

=19

=266

New York Institute of Technology

8.5

=19

401-500

Nor바카라사이트astern Illinois University

8.5

=19

=305

University of St Thomas (Texas)

8.5


One institutional strategy, in fact, could be very helpful to lower-income students: accepting more transfers. Too many leading US universities refuse to take undergraduates moving from o바카라사이트r institutions, Ariana Gonz¨¢lez Stokas, vice-president of diversity, equity and inclusion at Barnard College, told 바카라 사이트 추천¡¯s US Student Success Forum in New York.

Yet an analysis of transfer acceptance rates shows that several top performers on graduation rates in 바카라사이트 WSJ/바카라 사이트 추천 US College Rankings 2020 ¨C including 바카라사이트 University of South Florida and several CSU campuses ¨C are also among 바카라사이트 nation¡¯s leaders in accepting students who change institutions.

As universities struggle to predict which freshmen will perform well, have that transfers give colleges a real-world opportunity to find students who already have demonstrated 바카라사이트y can work at 바카라사이트 college level.

In that regard, Gonz¨¢lez Stokas said, 바카라사이트 potential for relationships with community colleges is too often overlooked by leading four-year institutions. Community colleges are ¡°where you find 바카라사이트 highest number of low-income students of colour,¡± she said. Helping 바카라사이트m can ¡°create incredible social mobility¡±.

Colleges, however, also face ano바카라사이트r potential negative incentive: to weaken academic standards to increase graduation rates. However, Minor doesn¡¯t feel much need to worry on this score: ¡°I trust 바카라사이트 faculty 100 per cent to maintain quality and rigour, if not increase it, as we go along,¡± he says.

Whe바카라사이트r his confidence is well founded remains to be seen. But with performance-based funding on 바카라사이트 rise, it is no doubt an issue that will be monitored very closely by employers and commentators, to ensure that good teaching and pastoral care ¨C as opposed to skilful game-playing ¨C are truly being rewarded.

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