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 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…

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.

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…

Prior studies have documented the pattern of decreased state funding for higher education in periods of economic contraction (i.e., the balance wheel phenomenon). This qualitative case study examines how policymakers in California and Texas made decisions about funding higher education at the onset of the COVID-19 pandemic, when policymakers faced…

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…

Between 1997 and 2019, 16 out of 41 performance-based funding (PBF) states discontinued their PBF policies for public colleges and universities. Adapting policy diffusion theory to PBF discontinuation, we investigate whether policy discontinuation in one state is related to discontinuations in other states, and differentiate between the two policy…

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…

Public Higher Education (PHE) reflects a drastic reduction in funding to subsidize its day-to-day functioning, increasing dependence on tuition fees to be operational, the existence of outdated government funding policies, and the lack of a sustainable funding mechanism. Notwithstanding, the plethora of research attempting to understand different…

Although the teacher education shortage is at an all-time high across the United States, particularly in the field of Special Education, an innovative, multitiered approach can help colleges and universities address this scarcity. Teacher preparation programs can bolster their recruitment, training, and delivery of high-quality special educators…

The use of performance-based funding that ties state higher education appropriations to performance metrics has increased dramatically in recent years, but most programs place at stake a small percent of overall funding. We analyze the effect of two notable exceptions--Ohio and Tennessee--where nearly all state funding is tied to performance…

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…