Effects of performance-based funding on Ohio's community colleges and on horizontal fiscal equity

Date of Award


Degree Name

Ph.D. in Educational Leadership


School of Education and Health Sciences


Advisor: Theodore J. Kowalski


This study analyzed changes in institutional effectiveness and state funding during the first three years of Performance Based funding (PBF) measures in Ohio. This study additionally examined changes to horizontal fiscal equity in the state of Ohio's comprehensive community colleges for the first 3 years after the implementation of performance funding. Statistical measures recognized in public school finance were used to estimate changes in horizontal fiscal equity on Ohio's funding distribution for the 15 public comprehensive community and state community colleges following the implementation of Performance-Based funding.The study population consisted of the 15 comprehensive community and state community colleges in Ohio. Descriptive statistics were used to evaluate the effect of performance funding on the effectiveness (measured by success points) and funding changes (measured by FTE funds) of Ohio's comprehensive community colleges. Horizontal fiscal equity between the schools was assessed using range, coefficient of variation, and Gini coefficient statistics.During the period covered by this study, the PBF model appeared to have made the study institutions more effective, based on the number of institutions (13) that had an increase in success points per FTE over the study period. With the exception of 2 schools, all institutions showed a positive percentage increase in success points over the study period. Institutions were then ranked based on changes to State Subsidy funds allocated during the study period. Among the 15 institutions, 6 improved their ranking and 9 declined in ranking. With respect to actual dollar changes per FTE, 9 institutions increased in State Subsidies and 6 decreased. Based on both dollar changes and state rankings, the State Subsidies per FTE changed considerably since FY2010. Range-related statistics indicated an increasing trend toward inequity in the system, as did coefficient of variation and Gini coefficient analyses. The inequity was small but increasing as each year of the study progressed and more State Subsidy funds were allocated to schools based on success points. Implications of the findings and areas for further research were discussed.


Competency-based education, Community colleges Ohio Finance, Community colleges Ohio Management, Community College Education, Community Colleges, Education Finance, Education Policy, Finance, Higher Education Administration, Higher Education Funding, Ohio Performance-Based Funding, Horizontal Fiscal Equity, Community College Funding

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Copyright © 2015, author