This study is an in-depth policy review and examination of the impact of the Louisiana Board of Regents' outcomes-based funding formula on graduation rates at Southern University at New Orleans. The findings are meant to serve as a guide for policymakers to align institutional programs and policies with the metrics of the funding formula to best position SUNO for success. This research did not address the social phenomena that many theorize influence the performance of students and their ability to complete. More must be done to address the social issues and barriers that plague many students, particularly those who attend HBCUs. Equity factors that are included in the funding formula seem to address some of those issues, but more must be done to provide incentives for student persistence. The Louisiana Board of Regents' new funding formula incentivizes student progress and degree completion, which is a carrot and stick approach to funding, which some researchers indicate has not always worked. If this approach to funding is to work, more must be done by the institution to retain students by addressing and developing innovative strategies to retain students. The research revealed that SUNO has a lot of stop-outs and non-returning students. It is not possible to retain students who are not enrolled. [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.]