Performance-Based Funding in Wisconsin
...minor changes in variable weighting‌ can have profound impacts on which institutions thrive and which do not.
Consider Whether Small PBF Allocations Can Change Institutional Behavior The 5% set-aside for PBF presented in this paper resulted in only modest changes to each institution’s allocations. Thus, it is worth considering whether designating only a small portion of state appropriations for PBF is enough to affect meaningful institutional change. Under the 5% set-aside model, the institution with biggest absolute change in funding saw a change of about $1.2 million. For every institution in the UW System, this amount of money is relatively small, especially as the percentage of institutional budgets coming from state appropriations continues to decline. Collaborate with UW System and its Institutions
A common cause for failure of PBF is a lack of institutional buy-in. Therefore, it is critical that if PBF discussions move forward, UW System and institutional officials participate in every stage of the PBF design process. In an era of declining state funding, PBF could be another way to reduce funds allocated to postsecondary institutions. The best way to avoid persistent dissatisfaction and delay in implementation from postsecondary educational institutions is to engage these institutions in a meaningful and authentic way rather than as a token part of the planning process. The UW System is diverse and complex and developing a model without direct institutional input to account for this complexity will only heighten the difficulties of this funding approach. However, gaining institutional buy-in will be more difficult than simply including institutions in ongoing discussions. As mentioned earlier, assuming the pool of money available for institutions remains relatively consistent, a PBF will have some institutions who gain and some who do not. Naturally, it is unlikely that any institution will support a model that results in a decline in state funding without additional benefits to offset that loss. If PBF funding comes in the form of bonus money on top of base allocations that are similar to previous allocations, then institutions have less reason to oppose the practice as they stand to lose nothing and potentially gain something. But in a system where some institutions will lose while others gain, achieving a consensus of institutional support will be extremely challenging.
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