Incorporate transfer outcome metrics into state performance-based funding formulas

Part of state funding is tied to transfer-out or bachelor's completion. Campus leaders reprioritize when the money follows the outcome.

Outcomes-based funding formulas with explicit transfer indicators.

State Budget Director / Higher Education Coordinating Board

System, state or accreditor

Large, 24 to 36 months to first visible effect

Share of state funding distributed on transfer success

Program impact is minimal if the percentage of base funding tied to metrics is low (e.g., under 5%).

Formulas can penalize under-resourced campuses if they lack equity-weighting adjustments for Pell-eligible students.