Abstract
In 1997, the state of South Dakota instituted an incentive program to reward institutions for performance related to state policy priorities. The program had a specified starting and ending point, running its course in 2002. This program provides a unique opportunity to study the connection between higher education policy and performance, an issue of central concern in most states as they try to maximize their use of existing state resources. The analysis uses literature and concepts from existing higher education studies as a guide to conduct the case study. The article outlines those areas where policy was most strongly connected to performance and speculates on why other areas may not have yielded such a link.
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