Adopting Performance-Based Funding - David Moltz, Inside Higher Ed

The Ohio legislature is poised to drastically change the way in which the state funds its public colleges and universities. The new funding formula is part of the state’s forthcoming operating budget, which is being debated this week by the legislature. Instead of funding institutions based on the number of students they enroll, the new formula would appropriate dollars based on colleges' ability to retain and graduate students. While most administrators applaud the move to performance-based funding and the way in which it rewards institutions for their success, some question its fairness and wonder whether it actually shortchanges some of the state’s open-access institutions.