One of the biggest challenges states face is producing a workforce qualified to meet the needs of employers in today’s economy. In order to increase degree attainment and begin to close the skills gap that exists between workforce supply and industry demand, states should change the way they fund higher education.
States have traditionally funded their public institutions of higher education based on enrollments. This means the more students attending an institution, the more money that institution receives from the state. While this may incentivize colleges to expand access, it does nothing to incentivize efficiency and productivity. Institutions are rewarded for admitting more students and keeping them enrolled as long as possible, not for ensuring that every student is making progress toward a degree and ultimately leaving with a credential that has value in the labor market…
8 Ideas to Improve Higher Educationuu