Colleges to Prove Worth For State Funds

Tim Goral's picture
Monday, April 23, 2012

First their budgets came under the knife. And now the nation's colleges and universities are facing new scrutiny from legislators and governors who want assurances that scarce tax dollars aren't being wasted.

The message to higher education leaders is simple: "If you want more money, prove you deserve it."

In the jargon of policymakers, it's called performance funding. And little by little, it's making its way into higher education budgets across the nation, with schools getting more or less money based on their graduation rates and a host of other variables. Missouri recently laid the groundwork for its version of performance funding, while Illinois is in the first year of its fledgling initiative.

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