Policy Snapshot: Outcomes-Based Funding

Outcomes-based funding models are designed to encourage institutions not just to focus on student enrollment, but also student success through retention and completion efforts. Of the 29 states with operational outcomes-based funding models, many consider outcomes such as first to second year retention, postsecondary degree attainment, degree completion time and success for at-risk populations. This profile from the Education Commission of the States summarizes state outcomes-based funding trends and describes states such as Arkansas, Kentucky, Texas and Utah that adopted new funding models in 2016 and 2017. 

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September 2017