New Study: Idaho should fund higher education based on results, not enrollment
Idaho taxpayers spend millions of dollars supporting public colleges and universities each year. But are they getting the results they deserve?
A new study released by Mountain States Policy Center (MSPC) argues it's time for Idaho to rethink how it funds higher education, shifting away from a system based primarily on student enrollment and toward one that rewards measurable results, including graduation rates, workforce preparation and student success.
The study, Idaho should embrace performance-based funding for higher education, was authored by MSPC Policy Analyst Sam Cardwell.
"Idaho taxpayers shouldn't simply be paying colleges and universities to enroll students. They should be investing in institutions that help students succeed," said Mountain States Policy Center president Chris Cargilll. "The goal of higher education should be to prepare students for successful careers and futures. Our funding system should reflect that."
Currently, Idaho uses an enrollment-based funding approach, meaning funding is tied to the number of students attending an institution rather than the outcomes those students achieve.
The new MSPC study highlights how other states have moved toward performance-based funding models that reward institutions for meeting measurable goals.
According to the study, 32 states currently use some form of performance-based higher education funding. States including Texas, Tennessee, Indiana and Florida have adopted approaches that emphasize student achievement, degree completion and workforce outcomes.
The study points to Florida, where four-year graduation rates increased by 14.5% between the 2009–2013 and 2016–2020 periods following the adoption of performance-based funding metrics.
"Idaho doesn't need to reinvent the wheel," Cargill said. "Other states have demonstrated how funding can be tied to results. Idaho should learn from those experiences and develop a system that works for its students, institutions and taxpayers."
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About Mountain States Policy Center
Mountain States Policy Center is an independent, nonprofit research and educational organization dedicated to advancing free markets, individual liberty and limited government in Idaho, Montana, Wyoming and Washington. Through research, education and public engagement, MSPC works to promote policies that expand opportunity and improve the lives of residents throughout the Mountain States.
