Open Educational Resources (OER) have continued to gain traction in higher education, assisting with ever-rising costs of publisher textbooks and supporting pedagogical innovation. Starting in 2017, NY state legislature has allocated funds annually to be split between its two public university systems to support and incentivize the adoption of…

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…

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…

State support for higher education has been volatile, prompting public universities to pursue alternative revenue sources to supplement state support. While dependence on alternative revenue sources has been raising, the relationship between these revenue sources and graduation rates has not been examined in depth. This study used panel data from…

We compiled the first longitudinal data set with detailed state funding information to examine whether different funding strategies for public higher education correlate with college access and completion, with a focus on outcomes among racially minoritized students. We found no relationships between funding mechanisms and student outcomes at…

Performance-based funding (PBF) policies with research incentives have grown in popularity over the years despite little understanding regarding whether they actually work. This study leverages a novel national data set to examine the impact of PBF research incentives on the research expenditures and total state appropriations among public 4-year…

Using an output distance function as an analytic framework, stochastic frontier analysis (SFA), and a generalized true random effects (GTRE) model, this study examines the financial context of bachelor's degree production efficiency among public master's colleges and universities (MCUs) in the United States. Employing a GTRE model, degree…

We use the natural experiment of a state lottery scholarship to measure the effect of generous financial aid on graduation rates at New Mexico's flagship public university. During the study period, the scholarship program paid full tuition for eight semesters for any state resident earning a 2.5 grade point average in their first semester at any…

According to the theory of Effectively Maintained Inequality (EMI), economically advantaged individuals not only enter each level of education at higher rates than do their less advantaged peers, but also enjoy qualitative advantages at each level that position them more favorably to continue to the next level. Governments may play a role in…

Performance funding in higher education is intended to incentivize increased degree production at American colleges and universities by linking state funds directly to institutional outcomes. However, many critics suggest that such funding arrangements create systems of "winners and losers" by rewarding some institutions over others.…

In 2008 it was certain that the Great Recession would represent--for this generation--the singular reordering of higher education. As a result, it was assumed that colleges and universities would be forced to become vastly more efficient places by graduating more students with high-value certificates and degrees. Despite significant cuts to higher…

Pay-for-performance has become a state finance policy du jour for public postsecondary institutions. A total of 35 states currently distribute varying amounts of appropriations to colleges and universities based on outcome measures. This study uses a difference-in-differences quasi-experimental technique to assess the impact of performance-based…

This study estimates the effect of state appropriations on the graduation rates of freshman cohorts by race/ethnicity. Data were obtained for public four-year institutions (n = 415) representing six freshman cohorts between 2007 and 2012. Hybrid regression models indicated that a ten percent increase in appropriations would yield a percentage…

Public colleges and universities depend heavily on state appropriations and legislatures must decide how much to fund higher education. This study applies punctuated equilibrium theory to characterize the distribution of annual changes in higher education appropriations and defines the threshold for a dramatic budget cut. Using data for the 50…

The purpose of this study was to provide a theoretical model for public higher education. Significant financial challenges are affecting the future of the public higher education sector of the United States. With a decline in enrollments in conjunction with minimal increases in state funding sources, many have speculated what the future holds for…