This study uses fixed effects panel data to analyze state performance-based funding (PBF) in place beginning in the 2009 fiscal year on associate degree completion rates for students of color from 2009 through 2017, using 868 matched state institution IPEDS completion datasets. Several well-documented effects on completion are introduced as control variables such as educational appropriation changes, institutional spending, minority enrollment, percent of grant aid, and tuition and fees. Statistical modelling performed in this study uses STATA 15 and is consistent with methods used in panel data research. Analysis revealed one statistically significant negative result of PF funding of increased tuition and fees associated with a 4.258% decreased percentage of graduates of color. This research seeks to deepen the understanding of long-term performance funding effects on completion of underrepresented racial demographics. A discussion of unintended consequences of performance funding (Dougherty, et al., 2016b) and other theories such as Principal Agent and Advocacy Coalition Theory are included. [The dissertation citations contained here are published with the permission of ProQuest LLC. Further reproduction is prohibited without permission. Copies of dissertations may be obtained by Telephone (800) 1-800-521-0600. Web page: http://www.proquest.com.bibliotheek.ehb.be/en-US/products/dissertations/individuals.shtml.]