In 2007, the Washington State Board for Community and Technical Colleges launched the Student Achievement Initiative (SAI), a system-wide policy to reward colleges for improvements in student achievement. Under the SAI, since 2009, the state has awarded some funds based on how much colleges have increased student achievement relative to their own prior performance. Achievement is measured in points, using six metrics: improvement in performance on assessment of basic skills; advancement across levels of developmental education; accumulation of 15 college credits; accumulation of 30 college credits; completion of quantitative reasoning courses; and completion of a degree, certificate, or apprenticeship. Using data from 2007 to 2011, this study examines the performance of Washington State's 34 two-year colleges under the SAI, with an empirical analysis of how many points colleges accumulated and which college-level and student characteristics were associated with points accumulation. It also considers whether alternative measures of institutional performance would yield different funding allocations. Finally, the study examines whether there is evidence that rates of student progression or "momentum" toward completion have increased since the SAI policy was implemented. (Contains 7 figures, 10 tables and 23 footnotes.)