Description
ABSTRACT
With increased scrutiny on lackluster graduation rates and large debt-loads for students, state policymakers are searching for ways of improving the efficiency and effectiveness of higher education. Instead of traditional funding based solely on the total number of students enrolled in classes, states are shifting to a performance-based model that emphasizes student outcomes and prioritizes results. Performance-based funding is a system that allocates funds to higher education institutions based on their performance relative to pre-determined measures such as course completion, degree attainment, and credit accrual rather than a simple formula that relies only on enrollment. Some policymakers and state legislators suggest that performance-based funding (PBF) is an effective method that can hold institutions accountable for student success outcomes and demonstrate the positive influences they are having on students. However, there are concerns regarding whether PBF has the desired positive impact on improving student outcomes. This quantitative research study utilizes an interrupted time series analysis (ITSA) to evaluate the impact of PBF on certificate and degree completion at Ohio’s 23 public community colleges between the years 2004 and 2018. The study also seeks to identify whether among the different types of Ohio public community colleges (technical, state, community college) in these same student outcomes. The results from this study suggest that public community colleges in the state of Ohio have significantly increased the volume of associate degrees over the amount of less than one-year or one-year certificates as a result of the change to performance-based funding. The results of both research questions are consistent and add to the literature on this subject. This study supports the more recent results generally found in research and supports the value of PBF in the overall output of associate degrees.
KEY WORDS: Performance funding, public community college
