HEQCO report finds institutional mission important to outcomes-based funding models

December 3, 2014

A new report released by the Higher Education Quality Council of Ontario (HEQCO) studied outcomes-based funding models in Canada, the US, Australia, and select European countries, finding that the most promising models consider institutional mission, are collaborative, and allow sufficient time for implementation and evaluation. The authors advise caution before drawing any conclusions about the effectiveness of outcomes-based funding models, as the practice is relatively new and much of the existing research focuses on earlier models, not recent ones. The report also suggests that institutions with varied missions need to be involved in the development of such funding models, as a one-size-fits-all model may not be the best approach. “If outcomes-based funding policies fail to account for differences across the institutions affected, jurisdictions may be more susceptible to unintended consequences, such as increasing retention and graduation rates simply by making admissions criteria more selective,” reads the report. HEQCO Summary | Full Report