Performance-based funding (PBF) policies link state appropriations for public higher education institutions based on quantifiable metrics, such as retention and graduation rates. Although they are framed as an objective measure of university accountability, universities facing pressure as a result of PBF policies are more likely to shape their admissions practices on metrics that disregard structural inequality, such as GPA or SAT scores. A new study from scholars at the University of Illinois has connected PBF policies to declines in Black undergraduate enrollment at highly visible public universities.
Using federal data from 2010 to 2020, the authors examined public universities in states that adopted PBF policies after 2010 compared to those in states without PBF policies. In addition to investigating the number of Black undergraduates enrolled and the odds of a Black student attending the university, the authors measured each university’s visibility based on its number of peer nominations reported to the federal postsecondary data system. Institutions that are frequently named by others are considered “highly visible,” as they gain more public attention than less-visible universities.
Overall, the authors found small effects of these policies across all public universities. However, at highly visible public universities, the authors found a roughly seven percent decrease in the institutions’ Black undergraduate enrollment and the odds that an undergraduate at that university is Black. Among first-time undergraduates at schools in states with PBF policies, there was a 10 percent decline in Black enrollment. The same trend was not found among students from other racial backgrounds, nor was it found at private institutions. Based on these findings, the authors conclude that “accountability-based reforms are racialized policies” that further the persistent racial inequalities facing Black Americans in public higher education.


This article provides an overview of a study that provides no surprises. Given the fact that top tier public institutions often use standardized tests as to who is admitted to their institution. Black students and other students of color, depending on their exposure in high school, may or not do as well on these types of tests (ACT, SAT). High school GPAs are another criterion coupled with courses taken by students (i.e. college preparatory courses) are factored into the admission equation. Colleges and universities that determine future student success based on these criteria may not examine other student characteristics that may be just as predictive.