Prior studies of means-testing in college financial aid formulas have analyzed the disincentives to save attributable to the inclusion of assets in the formulas. Such disincentives are only half of a standard incentives--insurance trade-off. When income is uncertain, a financial aid formula that conditions aid on assets and income provides…

What can the federal government do to help ensure that the public schools attended by children living in poverty have enough resources to serve their students? In this brief, we describe existing federal efforts to support education spending in high-poverty districts, discuss their limitations, and suggest alternative approaches for federal…

Performance budgeting strategies have failed to realize the aspirations of their advocates for nearly 50 years. Performance budgeting underperforms because it is too simple a solution for complex problems. It overestimates the power of monetary incentives. Where improved performance can be easily achieved, it spends money where it is not needed.…

State policies to expand computer science (CS) education have popped up nearly everywhere since 2016. This acceleration speaks well to the collaborative work of state boards of education, intermediary and national organizations, state legislatures, and governors who championed those policies. It also speaks to the urgency of increasing all…

This paper analyzes the incentives induced by a formula to fund universities based primarily on enrolment. Using a simple game theoretical framework, we argue that the strategic behaviour induced by those formulas is to favour enrollment. We further argue that if the funding value differs by enrolment type, it introduces incentives to substitute…

In the United States, financial incentives have been used by the U.S. Government to reward performance at colleges and universities since the 1960s. Various case-studies have documented that incentivization programs may not result in positive outcomes. The purpose of this qualitative, multiple case study was to identify two-year, public colleges'…

Jobs for the Future (JFF) is developing this state policy framework to outline the steps states can take toward fully adopting each of the Big Blur's four key components and creating a more effective system for grades 11-14. The Big Blur argues for the need to erase the arbitrary boundaries between high school, college, and careers and create one…

High-quality early learning experiences (i.e., developmentally appropriate, play-based instruction with clear learning goals) have positive long-term effects on student outcomes. As California rolls out Universal Transitional Kindergarten (UTK), district leaders focused on meeting state requirements for hiring qualified staff and finding…

Accurate diagnosis of attention deficit/hyperactivity disorder (ADHD) in children is difficult because the major symptoms, inattentiveness and hyperactivity, can be exhibited by any child. This study finds evidence of systematic differences in diagnosis and treatment of ADHD due to third party financial incentives. In some states, due to the…

Special education is the largest categorical funding program in California's K-12 education budget. In 2016, the Public Policy Institute of California published "Special Education Finance in California" (ED571011), which looked at changes that would align the state's special education program with the principles underlying the Local…

Performance-based funding is a resource distribution strategy used in education to reward service providers for the outcomes they achieve. Institutions that produce above-average results earn additional financing, while those that fall short may face funding reductions and may be targeted for technical assistance to address their performance…

Today's challenges for special education funding are rooted in a complex regulatory and policy environment that reflects little forethought about who can and will pay special education costs. Despite the fact that states and school districts are legally required to ensure a free and appropriate public education to students with disabilities, the…

This is the executive summary for "Structuring State Policy for Student Success: Applying Incentives in the Volunteer State." For many years, state funding to public colleges and universities in Tennessee and across the nation was distributed based primarily on enrollment, rather than degree production or efficiency. This led or allowed…

While accountability in higher education has been a topic of debate for decades, in recent years the discussions have shifted to emphasize efficiency and economic measures of success. A prominent example of this accountability movement is the increase in popularity of performance funding policies. One of the most recent states to implement…

Policymakers are moving to outcomes-based funding in an effort to inspire public higher education institutions to drive the transformative change required to expand access, increase graduation rates and contain costs. For outcomes-based funding to have a significant effect on student outcomes, system and institutional leaders must successfully…