Performance Based Funding: Changing the Paradigm for Higher Education

Aims: To examine major aspects and driving forces to performance based funding as it changes the paradigm of how colleges and universities receive public funding.
Study Design: The manuscript is a position, review paper, therefore it selects a controversial topic and builds a case for a position.
Place and Duration of Study: Covers recent literature that relates to performance based funding of colleges and universities while grounded in neoliberal philosophy.
Methodology: Structure the paper moves the subject matter through as series of topics, formula funding; student success; student outcomes and state goals; and conclusions.
Results: The purpose and landscape of higher education is changing. Performance based funding will dominate the landscape. The neoliberal approach as an economic model of funding will remain for quite some time. Colleges and universities may not benefit from performance based models of funding if they do not have the resources or programs that correspond to state objectives.
Conclusion: Increased accountability and decreased funding is the new norm. Policy makers are now linking funding to the types of results that higher education can produce.