Also known as performance-based funding. Used primarily in higher education policy, outcomes-based funding allocates a portion of a funding formula based on performance on specific indicators. Additionally, they may more heavily weigh students from low-income backgrounds, students with disabilities, English learners, and other groups. (Source: Dougherty, K. J., & Vikash, R. (2011). The impacts of state performance funding systems on higher education institutions: Research literature review and policy recommendations. Community College Research Center at Teachers College Columbia University.)
