The authors examine the relationship between institutional spending patterns and performance funding standards at the 14 public community colleges in Tennessee, the first state to implement performance funding standards for its community colleges. Performance standard scores and data on expenditures by category were analyzed to determine the percent of revenue spent by function in relationship to individual and aggregated performance standard scores for the colleges. The analyses revealed a relationship between expenditure categories and performance standard scores, with higher scoring colleges spending a greater portion of funds on academic support and instruction than lower scoring colleges.
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