Citations:1. State Funding is typically allocated to colleges based on how many full-time equivalent students they have enrolled at the beginning of the semester. That model

provides incentives for colleges to enroll students but not necessarily to help them graduate. Performance Based Funding allocates funds to colleges based in part on student outcomes.

2. Complete College America "Georgetown University Center on Education and the workforce, 2009" Complete College America. N.p., n.d. Web. 07 Aug. 2013.3. “U.S. Department of Education, NCES” Integrated Post secondary Education Data systems human resources component, Spring 2010 enrollment, and Fall 2010 completions, prepared May 2011.4. “The College Completion Agenda 2012 Progress Report” Completion Agenda College Board Advocacy & Policy Center. N.p., Web 26 Aug. 2013.5. Jaschik, Scott, and Doug Lederman. "The 2013 Inside Higher Ed Survey of College and University Business O�cers." CFO Survey Reveals Doubts About Financial Sustainability | Inside Higher Ed. N.p., n.d. Web. 12 Aug. 2013.6. "Performance Funding for Higher Education." National Conference State Legislatures. February 2013. N.p., n.d. Web. 09 Aug. 2013.7. "American Enterprise Institute." Addressing the Declining Productivity of Higher Education Using Cost-e�ectiveness Analysis. N.p., n.d. Web. 13 Aug. 2013.

To learn what you can do InsideTrack works with college and universities to improve student and institutional success. Their one-on-one student coaching, process expertise, analytics and technology have been proven to increase graduation rates by an average of 15 percent and enhance the student experience. For more information, visit www.insidetrack.com

Leadership challenges resulting from PBF

Admissions Many institutions choose to strengthen admission criteria, often deviating from their mission of access.

Impact and Cost-E�ectiveness It’s very tempting to implement multiple unproven initiatives in a scramble to improve outcomes.

Statewide Coordination PBF drives increased competition among state institutions, undermining collaboration & coordination.

Protecting Learning Most PBF formulas focus on metrics related to degree production, without explicit mention of student development & learning outcomes.

Long-Team Planning Formulas change with the political landscape, making it di�cult for university decision makers to conduct long-term planning.

What can be done?Higher education institutions should adopt initiatives that are proven to increase retention and completion in a cost-e�ective and scalable manner.

InsideTrack

Student/Faculty Ratio

TRIO Talent Search†

Merit AidUpward Bound

Cost-E�ectiveness* of Higher Education Programs7

*Cost-E�ectivness Ratio is calculated by dividing the estimated e�ect on graduation by the cost of the program.†Eligibility restricted to academically qualified limited income, first generation (neither parent graduated from a 4-year college) students

InsideTrack works with colleagues in the higher education community to raise awareness, foster dialogue and share best practices in the area of PBF.

0.04000.00830.03830.00730.0015

HI

RICTVTNHNJMA

DEDC

Adoption of PBF Initiatives6

Performance funding in place

Transitioning to performance funding

Formal discussions on performance funding

No formal activity

CA

OR

WA MT

ID WY

NV UT

AZ NM

CO

ND

SD

NE

KS

OK

TX

MN

WI

IA

MO

AR

LA

IL IN

MI

KY

OH

TN

MS AL GA

FL

SC

NC

VAWV

PA

NY

ME

AK

MD

AS GU MP PR VI

*Feb. 2013

Many states are now reconsidering the funding by enrollment model for state appropriations1

Regulations and public scrutiny are focusing attention on improving student outcomes while controlling cost

Enrollment rates have grown for decades while graduation rates remain flat3

62% of jobs will require college education by 2018, and more than half of those will require at least a bachelor’s degree2

92%of Colleges & Universities CFO’s cite retentionas their top priority5

According to a recent survey,

Why Now?

Afric

an A

mer

ican

Amer

ican

Indi

an

Asia

n

Hisp

anic

Whi

te

37.7%

66.3%

48%

59.2%

38.5%

National Six-Year Graduation Rates of Public University Baccalaureate Students4

Race/Ethnicity