State funding for public higher education institutions is crucial in supporting college access and completion, particularly among students from historically under-represented groups, yet little is known about the mechanisms that states use to allocate funds and how they are affected by financial challenges. This article provides the first detailed…

The purpose of this study is to examine in what ways, if any, the introduction of the equity incentive portion of Louisiana's performance-based funding model impacted the underserved student groups it was designed to support. I employed a quantitative quasi-experimental design for this study by running three outcome variables (Adult Learner…

There is a deepening divide between higher education institutions that can sustain themselves fiscally in the wake of declines in state funding and those institutions that are struggling to sustain needed revenues. This research analyzes changes in revenue patterns from 2000-2015 in Midwestern public four-year colleges and universities to the…

Performance-based funding (PBF) policies that closely link higher education funding to performance metrics are common in the United States. Similar to other performance management systems, evidence suggests PBF policies have unintended impacts, such as cream-skimming. More specifically, evidence shows the fiscal incentives of PBF encourage…

In this study, we leverage national data sources to examine the relationship between community colleges' level of reliance on local funding and their total institutional revenue, focusing specifically on community colleges educating the largest shares of low-income and racially minoritized students. We show that local funding is positively related…

This final brief of a three-part series explores Tennessee and its legislative attempts to curb underfunding. The first brief explored the national landscape of Historically Black Colleges and Universities (HBCUs) funding, including the historical disinvestment of land grant HBCUs. The second brief explored the systemic underfunding of HBCUs in…

In recent decades, education leaders and researchers have increasingly sought to disaggregate key higher education outcome data--graduation rates, attainment, employment, and income--by race and ethnicity in order to uncover and narrow equity gaps. The same is true, recently, for affordability, especially as it relates to the differential impact…

This case study uses the theory of academic capitalism (TAC) to explore how a public university known primarily for undergraduate education is incorporating market-oriented practices and structures, and how those changes could impact its curriculum and enrollment profile. Through initiatives to establish an engineering college, expand graduate…

A.C.A. §6-61-234 (Act 148 of 2017) directs the Arkansas Higher Education Coordinating Board (AHECB) to adopt polices developed by the Arkansas Division of Higher Education (ADHE) necessary to implement a productivity-based funding model for state-supported institutions of higher education. At its October 27, 2017 meeting, the AHECB approved the…

After trailing the national average for five years, funding per student at public colleges and universities in Wisconsin overtook it in 2021. State and local tax and tuition funding per student dropped nationally after adjusting for inflation and rose in Wisconsin, though it remains lower for four-year campuses in Wisconsin. The state's colleges…

This chapter describes a comprehensive set of best practices for the evaluation of state formula funding models and state higher education funding in general, based on existing practices within the United States. It represents a review of practices that lead to stakeholder engagement as an objective, collaborative process.

Objective: This article analyzes the implementation of two state grant programs in Tennessee aimed at improving the quality of in-demand postsecondary career and technical education (CTE) programming at community and technical colleges. We use insights from our findings to propose a conceptual framework for understanding how external funding can…

This paper examined how performance-based funding (PBF) policies shape institutional performance and student outcomes for public four-year or above historically Black colleges and universities (HBCUs). By conducting a systematic review of the literature, the findings expanded on two main areas, as underscored by the pieces reviewed: (a) how the…

Public institutions of higher education (IHEs) have four basic revenue streams: state appropriations, tuition, donations and contracts, and earned income. Over the last 2 decades, there has been a massive decrease in state appropriations for higher education. Declining state appropriations have forced public IHEs to look to alternative revenue…

While there has been disinvestment into higher education, there is also a significant disparity in state investment for certain types of public institutions, specifically for less-resourced institutions such as HBCUs (Williams, 2020). There is not much literature that examines the relationship of formula funding or state appropriations on…