Objective: We investigate whether performance funding—an increasingly prevalent state policy that allocates appropriations based on outcomes that prioritize retention and completion—places minority-serving institutions (MSIs) at a financial disadvantage due to these institutions serving a greater proportion of historically underrepresented students. Method: Using data from 2004-05 to 2014-15 within Texas and Washington, we compare state funding allocations to 2-year institutions designated as MSIs versus non-MSIs, before and after performance funding policies are implemented. We additionally compare funding allocations for each performance metric. Results: On average, MSIs in Texas and Washington are allocated the same or less in per-student state funding after performance funding compared to non-MSIs. MSIs in Texas are advantaged in performance metrics for transfers and for gateway courses in math (credit-bearing courses that serve as a “gateway” to continued study), and MSIs in Washington are advantaged in developmental education courses. However, MSIs are typically disadvantaged in metrics for degree completions. Conclusion: Our findings suggest that MSIs in Texas and Washington are not financially disadvantaged due to performance funding because the funding formulas in both states incentivize milestones in addition to outputs. We recommend that policy makers consider incorporating performance metrics for developmental education and gateway courses in addition to retention rates and degree completions, and tailor metrics to the student population of institutions to mitigate the potentially inequitable funding consequences of performance funding policies.

中文翻译：

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公平还是差距：绩效资助政策是否对 2 年少数族裔服务机构不利？

目标：我们调查绩效资助——一种越来越普遍的国家政策，根据优先保留和完成的结果分配拨款——是否使少数族裔服务机构 (MSI) 处于财务劣势，因为这些机构为更多历史上代表性不足的学生提供服务。方法：使用德克萨斯州和华盛顿州 2004-05 至 2014-15 年的数据，我们比较了在绩效资助政策实施前后，指定为 MSI 与非 MSI 的 2 年制机构的州资金拨款。我们还比较了每个绩效指标的资金分配。结果：平均而言，与非 MSIs 相比，德克萨斯州和华盛顿州的 MSIs 在绩效资助后分配的每个学生州资助金额相同或更少。德克萨斯州的 MSI 在转学和数学入门课程（作为继续学习的“门户”的学分课程）的绩效指标方面具有优势，而华盛顿的 MSI 在发展教育课程中具有优势。然而，MSI 通常在学位完成指标方面处于劣势。结论：我们的研究结果表明，德克萨斯州和华盛顿州的 MSI 并未因绩效资助而在财务上处于不利地位，因为这两个州的资助公式除了激励产出外，还激励里程碑。我们建议政策制定者除了保留率和学位完成率外，还考虑纳入发展教育和入门课程的绩效指标，