Performance-based Funding in Education

Abstract

This research paper is based on highlighting the importance of performance based funding in the educational sector. The uses of performance based funding system used by some of the well known states of United States of America have been discussed briefly, along with the major objectives of performance based funding system. The scope of performance based funding system is also discussed in the context of five key factors of policy cultures, which are Political, Regulative, Legal, Professional and Markets.

Table of Contents

Introduction4

Discussion4

A Concise History of Performance-Based Funding System6

Present state policies6

Political Change through Performance based funding system7

Regulative Change through Performance based funding system7

Legal Change through Performance based funding system8

Professional Change through Performance based funding system8

Markets Change through Performance based funding system8

Performance Based System in States8

Ohio8

Pennsylvania9

Tennessee9

Washington9

Conclusion10

References10

Performance-based Funding in Education

Introduction

A system that is based on allocation of an appropriate budget according to particular performance measures such as credit attainment, course completion and completion of degree is referred to performance based funding. This system helps the funding organizations in fair allocation of funds so that the players can perform even better than before. It is the responsibility of the government to find out the key players that can bring success to overall system of the state. These funds are allocated on competency based and are not provided to all the enrolled participants. One can get a clear picture on how these participants have played their role in bringing improvement in overall educational system. Education one of the most important factors that can benefit a state in its developmental activities needs to be given even more importance than it is provided. The successful institutions, which have played an important and clear role in the development of education, will be getting larger portions of funds. Although, performance based funding system includes both performance metrics in the form of incentives for educational institutions and enrollment to make progress in their organizational objectives. An evolution in the global economy had brought up an enhanced value of human capital for collective economic and individual security.

Discussion

President Obama has played an important role in bringing change in the performance based funding system as he gave more importance to the set of ambitious national goals that can help the state in leading the world in the form of number of college graduates by 2020. The long stagnation needs to be removed from the educational system and the college completion rate should be improved. The administration of President Obama is hoping and is working for achieving the new established objectives that is to promote those educational institution, colleges etc. that are truly performing by providing them appropriate funds. The agenda is formed with the mutual consensus and discussion of policy think tanks, state government leaders, major philanthropic organizations and the national higher education associations that are involved in promotion and development of education reforms (Carnevale, 1998).

The main agenda is focusing on promotional activities in enhancing the educational practices of public schools, colleges and ...