Alabama panel studies outcome-based funding models for higher education, asks for follow-up data and funding commitment

A Joint Interim Committees meeting on Oct. 25 examined outcome-based funding (OBF) approaches for Alabama's public higher education institutions and discussed next steps including follow-up analysis and a possible funding commitment from the state's Opportunity Fund.

The committee heard a presentation from Will Carroll, managing director for strategic finance and student success at HCM Strategist, who said outcome-based funding is now used in roughly 30 states and can align state dollars with goals such as degree completion, transfer success and workforce outcomes. "It's a way of making sure that the state is investing its dollars in a way that advances and aligns with the state goals," Carroll said.

Committee members said they had no fixed positions but wanted data and safeguards before pursuing legislation. "We have no preconceived ideas or opinions," Chairman Garrett said during opening remarks. Members repeatedly returned to questions about how to preserve institutional mission, avoid unintended incentives, and ensure any program provides reliable, multi-year funding rather than a one-time increase.

Carroll described common structures and tradeoffs.…