Vermont mulls performance-based funding for higher education

Thirty-two states have funding formulas or policies to distribute part of their higher education funding based on performance metrics, such as the number of degrees awarded, four-year graduation rates or amount of low-income or minority graduates, according to the National Conference of State Legislatures.

"In an era of tight state budgets and greater demand for college graduates and a greater emphasis on student success performance funding has emerged as a politically popular approach to higher education funding," said Thomas Harnisch, director of state relations and policy analysis for the American Association of State Colleges and Universities.

Public college and university presidents are generally supportive of performance-based funding as long as it respects the diversity of institutional missions and is fair, Harnisch said.

The Vermont State Colleges, which includes Castleton University, College of Vermont, Johnson State College, Lyndon State College and Vermont Technical College, recommends the funding formula reflect the number of post-secondary credentials — from one-year certificates and up — awarded to Vermonters, weighted by degree type, and the number of degrees completed on time by Vermonters.