Policy Design Matters

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Policy Design Matters: The Impact of Performance Funding Policies on Credential Completion at Community Colleges

Author

Amy Y. Li
Assistant Professor
Department of Leadership, Policy, and Development
University of Northern Colorado

​Alec I. Kennedy
Ph.D. ​Candidate
Evans School of Public Policy and Governance
​University of Washington

​Margaret L. Sebastian
Ph.D. Student
Department of Leadership, Policy, and Development
University of Northern Colorado

Abstract

Results from a recent study of performance funding at community colleges suggest that policies with particular features, including over 5 percent of base funding tied to outcomes, produce increases in short-term certificate completions. Policies in place for at least two fiscal years were also more likely to produce declines in associate degree completions. There was an inconsistent relationship found between performance funding and medium-term certificate completions.

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