Implementation and Impact of Outcomes-Based Funding in Tennessee

Abstract

Outcomes-based funding (OBF) is a term used to describe state- and system-level higher education funding policies that link public dollars to key student outcomes such as credit completion, retention and graduation. Outcomes-based funding models are a significant shift away from traditional approaches to funding public higher education based on enrollment or previous levels of funding. To provide more practical analysis to guide state policymakers who are considering adopting or refining OBF, Research for Action conducted a comprehensive, mixed methods research study on the development, implementation and effects of OBF in three states: Indiana, Tennessee, and Ohio. This report highlights the most policy-relevant findings of our work in Tennessee.