A New Look at the Institutional Component of Higher Education Finance: A Guide for Evaluating Performance Relative to Financial Resources

This report supported by The Pew Charitable Trusts is an effort to address the performance of state higher education systems, and the public sectors within them, relative to their levels of funding. The report aims to respond to the following questions: (1) Are there states and public sectors within states performing at high levels with relatively low levels of funding?; (2) Are there distinguishing characteristics between sectors of public institutions that perform very differently despite being similarly funded,or between sectors that perform essentially the same with very different levels of funding?; and (3) Are there external factors that influence performance relative to funding? Findings reveal that not all institutions need more resources; some can perform better with what they have, and some can maintain or improve performance with fewer resources. These considerations are rarely addressed in the complex and politically charged environment of higher education finance; when they are, they are usually statements of opinion without supporting data.