AUSTIN – Texas Public Policy Foundation today released a paper on outcomes-based funding for universities, by Trevor McGuire, policy analyst with the Center for Tenth Amendment Action at TPPF. The paper, “Guidelines for Outcomes-based Funding at Four-year Universities,” outlines top four guidelines to implementing this funding model: adopt simplicity, leave room for error and experimentation, anticipate date limitations, and learn from others' experiences. 

          “Across the political spectrum, Texans agree that the Legislature should incentivize universities to meet important goals by tying some of the state’s higher education funding to outcomes—e.g., graduation rates and average time to graduation,” said McGuire. “But this conversation breaks down when it comes time to decide how the state’s outcomes-based funding model should be designed. This paper has condensed the academic literature on outcomes-based funding, the experiences of states that have tried outcomes-based funding, and interviews with university administrators and faculty into four guidelines to help Texas avoid the mistakes made in this area by other states.”

To see the full publication, please visit:


For more information or to request an interview with Mr. McGuire, please contact Alicia Pierce at [email protected] or 512-472-2700.

Trevor McGuire is a policy analyst with the Center for Higher Education at Texas Public Policy Foundation.

The Texas Public Policy Foundation is a non-profit, free-market research institute based in Austin, Texas. The Texas Public Policy Foundation aims to advance a societal framework that effectively fosters human flourishing based upon cooperation and mutually beneficial exchange of ideas and speech.