Performance-based funding: State policy influences on small rural community colleges

Abstract

Performance-based funding (PBF) models intend to increase efficiency and productivity of the institution, thereby influencing organizational change. This change may be structural, programmatic, or procedural, and it may affect institutional practice and/or policy. The purpose of this qualitative case study was to understand the organizational impacts of a state performance-based funding policy on four small rural community colleges, as described by the leadership teams. Findings include direct impacts of the PBF policy on the college operations, programming, improvement efforts, and on perceptions of the college itself.