Joint Interim Committees hear national experts on outcome-based higher-education funding; no bill adopted

Lawmakers on the Joint Interim Committees heard a presentation from AccelonEd policy experts Miranda Thomas and Matthew Joseph on adopting outcome-based funding for Alabama higher education and explored how other states have used incentives to link state dollars to student results. The committee did not vote on any proposal and no bill was introduced at the meeting.

Why it matters: Outcome-based funding directs state education dollars toward measurable results such as program completion, in-state employment at a set wage threshold, transfers to four-year institutions or enlistment. AccelonEd’s national review identified three design priorities that states use to try to improve graduation and employment outcomes: offering a meaningful share of funding as incentives, choosing a small number of clear targets, and adjusting metrics to avoid penalizing institutions that enroll higher-need students.

Miranda Thomas, introduced herself as representing AccelonEd, an education organization that works with more than 30 states on school and higher-education policy. "Alabama is making very impressive strides with policies like the RAISE…