Performance funding reemerged in the 1990s as a state budgetary method for complementing or replacing other funding strategies for public colleges to better promote and respond to specific policy concerns. It has the potential to correct some of the apparent flaws in traditional budgeting but is easier to define than to put into operation. (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…

Although selecting goals and indicators is the most challenging task of performance funding, implementation requires development of other critical elements: success criteria to measure institutional performance; indicator weights for percent of funding allocated to each indicator; an allocation method for setting the relationship between…

A 1996 survey of state policymakers and public college representatives in states with performance funding (Arkansas, Colorado, Florida, Kentucky, Minnesota, Missouri, Ohio, South Carolina, Tennessee) is presented. Although differences exist across states in a number of areas, findings challenge the assumption of an irreconcilable gap between…