25 States Pass Graduation Incentives

Career College Central summary:

  • Twenty-five states now link college funding — typically 5 percent of higher ed dollars — to performance requirements, according to a report by the National Conference of State Legislatures. States are trying to raise graduation rates, reports the Washington Post. Some aim performance funding incentives at community colleges and others at state universities, while 16 states measure both two- and four-year institutions.
  • In addition to measuring graduation rates, some states give performance points for higher numbers of graduates in science, technology, engineering and math fields. Florida judges four-year universities, in part, by their graduates’ earnings. Louisiana is linking funding to improvements in student retention at two- and four-year institutions.
  • Five more states — Montana, Colorado, South Dakota, Georgia and Virginia — are planning performance-based funding mechanisms. Ohio Gov. John Kasich has proposed expanding outcomes-based funding” to community colleges writes Jamie Merisotis, president of the Lumina Foundation, in the Cleveland Plain Dealer. Community colleges will be rewarded not just for enrolling students but for helping them earn “meaningful credentials.”

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