This report examines changes in long-lasting performance funding systems and the political and social conditions that caused them. The authors analyze the experiences of two states: Tennessee, which pioneered performance funding in 1979, and Florida, which launched it in 1994.
Tennessee’s performance funding system has been more stable than Florida’s because its initial policy delineated how the system would be governed and changed over time, and it allowed for regular and systematic evaluation. Tennessee’s state legislature has also played a smaller role in the ongoing development of performance funding than Florida’s.
These differences in policy process carry important implications. A system where funding levels do not oscillate greatly and where indicators change more gradually and systematically is more likely to allow institutions to plan effectively. Further, such a system will have a more secure base of consent from institutions if it comes under attack.
A brief of this paper, Tennessee and Florida: Continuity and Change in Long-Lasting State Performance Funding Systems for Higher Education, is available for download.
