Early Results of Outcomes-Based Funding in Tennessee
No state has done more than Tennessee to shift state higher education funding to reflect outcomes rather than inputs. In other states, most of the core funding for higher education, including tuition and state appropriations, flows to colleges based on student enrollment. The more students in seats, the more institutions bring in. But with goals for more students not just to enter college, but to finish, and to raise the proportion of Americans with postsecondary credentials, states and the federal government are implementing or considering policies that place the emphasis on completion.