US: States might base funding on graduation rates

31 May 2009

States fund public colleges primarily based on how many students are enrolled. But a number of legislatures are considering policies that would link funding to whether students graduate, writes Beth Marklein in USA Today.

Lawmakers in Ohio appear likely to adopt a plan, introduced this year, that would base 100% of higher education spending on course and degree completion. Indiana is considering a similar but more modest proposal. And in Louisiana, the governor and legislature have called for plans that tie 25% of higher education funding to student success.

The concept of rewarding institutions that meet certain goals has been around for about 30 years, but the newer proposals focus more on student outcomes and involve more money, USA Today continues. The renewed interest reflects a growing concern that the USA has fallen behind other countries in college completion rates at a time when higher education is more important than ever.
Full report on the USA Today site

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