Ohio has begun statewide use of performance indicators in higher education to strengthen selected university programs, attract better faculty and students, leverage additional federal and private financial support, increase Ohio's visibility, and help higher education resolve state and broader social problems. (MSE)

Summaries of the design, planning, and implementation of performance funding programs in Arkansas, Colorado, Florida, Kentucky, Louisiana, Minnesota, Missouri, Ohio, South Carolina, Tennessee, and Washington reveal the challenges and opportunities of this reform approach. Performance measures and objectives and the history of the program in each…

As a response to the concerns associated with the allocation of state resources to institutions of higher education, several states have developed budget formulas to derive estimates of the institutional financial requirements. Formulas, however, were developed during a period of rapid growth, and might be unresponsive to institutional needs…