Report on a Pilot Project in Performance Funding. AIR Forum Paper 1978.

Reported are the execution and outcomes of the Tennessee Higher Education Commission (THEC) Performance Funding Project at Tennessee Technological University, a pilot project seeking to explore the question of whether it is desirable and possible to allocate state funds to community colleges and universities on a performance effectiveness criterion (how good) as compared to the current credit hour and enrollment criteria (how much). The University project is part of a larger state-wide effort sponsored by the THEC and funded by grants from several sources. This case study presentation is organized according to the following topics: First, the background for the state-level project is discussed as part of the national trend of concern about accountability. Second, the rationale for and objectives of the state-level project are considered. Third, the experiences at Tennessee Technological University are presented, with attention to the participants and to the events and procedures involved in its execution. The first year was dedicated to the development of instructional goals and performance indicators; the second year, with the acquisition of data on these indicators and the development of ways in which performance might be incorporated into the funding project. Positive outcomes are cited and some explanations for the relative degree of success to date are offered. Attention is also given to remaining challenges and problems. (Author/JMD)