What’s Wrong with Performance Based Funding?

ACADEME BLOG

This is a post by Rudy Fichtenbaum, President of the AAUP.

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The Chronicle of Higher Education just had an article about performance based funding in Florida. Performance based funding has been adopted in 30 states in one form or another and provides funding to universities and colleges if they meet certain metrics.

Performance based funding is being pushed by both the Lumina Foundation and the Gates Foundation. President Obama has called for performance based funding as part of his free community college initiative. The problem is that there is no evidence that performance based funding works.

In Florida, one of the ten metrics used to distribute performance based funding is the average wages of graduates employed in Florida. Make a $1 million but you are not employed in Florida and you don’t count. If the institution can’t find someone, they don’t count.

Each metric is scored on a 1…

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