Performance-Based Funding Models and Student Outcomes at Community and Technical Colleges

Performance-based funding (PBF) models have become increasingly prevalent in higher education. While designed to improve student outcomes, their effectiveness, particularly at community and technical colleges (CTCs), remains uncertain. Given CTCs' crucial role in providing equitable education, understanding PBF’s effectiveness is imperative for equitable funding. In this study the relationship between the Student Achievement Initiative (SAI) model and student outcomes at the Washington State CTCs was examined. Existing research on PBF is limited, often focusing on 4-year institutions and lagging outcomes using proxy data. These gaps were addressed by examining student outcomes for the 34 Washington State CTCs using secondary archival SAI data from 2007 to 2023. Lindblom's incrementalism theory, which posits gradual policy changes, provided a suitable theoretical framework for understanding the SAI model's incremental evolution and its potential impact on student outcomes. Using a quantitative cross-sectional research design, the five research questions were on the relationship between the SAI model and five student outcomes (completion of; college-level math, first 15 college-level credits, and first 30 college-level credits, and retention, and completion) while controlling five covariate variables (race/ethnicity, socioeconomic status, gender, enrollment status, and age group). Binary logistic regression analyses indicated a significant relationship between the SAI model and all five student outcomes (p < .001). Specifically, while SAI 3.0 effectively facilitated early student momentum, its impact on retention and completion rates was less pronounced. The positive social change implication is developing effective PBF models that promote equitable student success.