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The Political Origins of Performance Funding 2.0 in Indiana, Ohio, and Tennessee: Theoretical Perspectives and Comparisons With Performance Funding 1.0

By Kevin Dougherty, Rebecca Natow, Sosanya Jones, Hana Lahr, Lara Pheatt & Vikash Reddy
A new form of performance funding often called performance funding 2.0 (PF 2.0) represents a major shift in performance funding. Unlike earlier forms of performance funding that took the form of a bonus on top of the base state funding for higher education, PF 2.0 is embedded into the base funding itself. PF 2.0 programs are seen as promising means to significantly improve institutional performance due to the fact that they typically tie a larger portion of state funding to performance indicators than do PF 1.0 programs. Additionally, PF 2.0 programs aim to be more stable than PF 1.0 programs, as PF 2.0 performance indicators are written into the regular state funding formula itself and are not separate programs that can be easily dropped. Using three perspectives within policy theory—the Advocacy Coalition Framework, Policy Entrepreneurship theory, and policy diffusion theory—this paper examines the political forces supporting the enactment of PF 2.0 in three leading states and compares these forces with those involved in the enactment of PF 1.0 performance funding programs.
Download CCRC Working Paper No. 68
February 2014
  • Implementation and Impacts of Performance Funding in Three States

Related Publications

April 2015

The Politics of Performance Funding for Higher Education: Origins, Discontinuations, and Transformations

August 2013

Envisioning Performance Funding Impacts: The Espoused Theories of Action for State Higher Education Performance Funding in Three States

July 2013

Performance Funding for Higher Education: What Are the Mechanisms? What Are the Impacts?

Additional Resources

For more policy briefs and fact sheets, visit CCRC’s Policy Resources page.

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