A number of states have made progress in implementing performance-based funding (PFB) and accountability. This policy brief summarizes main features of performance-based funding systems in three states: Tennessee, Ohio, and Indiana. The brief also identifies key issues that states considering performance-based funding must address, as well as recommendations for states wishing to implement PFB. As a special note, this briefing paper follows the common practice of using the terms "performance-based funding" and "outcomes-based funding" interchangeably. (Contains 7 footnotes.)