Employing Postsecondary Data to Create Sound State Policy

States across the nation are using data in innovative ways to propel increased college attainment. Outcomes-Based Funding (OBF) models are one mechanism that many states use to allocate funding for public institutions based on their performance on a variety of metrics related to student success, as opposed to basing appropriations solely on enrollment data.  

IHEP's new report, Employing Postsecondary Data for Effective State Finance Policymaking, shows the variety of ways states are using postsecondary data to inform those funding and policy decisions, including OBF – and highlights examples of effective practices for data use outside of OBF models.

Although most states use metrics related to student access, progression, completion and cost, our report shows that there is no one 'right' OBF formula that all states should adopt. Instead, Employing Postsecondary Data underscores how OBF models with carefully crafted metrics can drive institutional improvement, and serve students who have traditionally been underserved by our postsecondary system.  But every model – while taking into account each state's unique context – must have high-quality data and equity measures in place to be effective.

This paper was released as part of a Lumina Foundation-sponsored paper series.

For more information about this report, please contact Jamey Rorison, senior research analyst at IHEP and the report's lead author, at jrorison@ihep.org.