Impact of Performance Funding on Retention and Graduation Rates

Authors

  • Thomas Sanford Tennessee Higher Education Commission
  • James M Hunter University of Minnesota

DOI:

https://doi.org/10.14507/epaa.v19n33.2011

Keywords:

financiamiento al rendimiento, rendición de cuentas, graduación, retención.

Abstract

As the architect of the oldest and most stable performance funding program, Tennessee provides a unique opportunity to analyze the impact of changes in performance funding policies on changes in institutional retention and six-year graduation rates over time. Utilizing spline linear mixed models, this study examines the impact of changes in Tennessee’s performance funding policies on retention and six-year graduation rates at public four-year institutions from 1995-2009. The results show tying retention and graduation rates to performance funding was unrelated to changes in the performance measures over the fifteen year period examined. Additionally, the doubling of the monetary incentive associated with the retention and six-year graduation rate measures in 2005 was not associated with increases in retention rates. These results suggest that at their current funding levels, states’ adoption of performance funding programs, such as the one in Tennessee, may be insufficient to incentivize changes in institutional behavior as desired by state leaders.

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Author Biographies

Thomas Sanford, Tennessee Higher Education Commission

Associate Director of Research

James M Hunter, University of Minnesota

Doctoral Candidate

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Published

2011-11-30

How to Cite

Sanford, T., & Hunter, J. M. (2011). Impact of Performance Funding on Retention and Graduation Rates. Education Policy Analysis Archives, 19, 33. https://doi.org/10.14507/epaa.v19n33.2011

Issue

Section

Articles