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Performance Funding Policies
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“Performance funding” refers to a broad set of policies linking allocation of resources to
accomplishment of certain desired outcomes.
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These were often add-ons or bonuses to base allocations that institutions earned for meeting various
goals or benchmarks. In many cases, while laudable, these goals and benchmarks were too broad to
be meaningful, or not explicitly tied to a state’s completion needs or attainment goals.
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Performance funding was generally awarded as a bonus, which was often the first to be cut in tough
budget environments.