State Incremental Funding

Last Updated 03/08/2024

Refers to the process in which States set the level of appropriations in a given year and increase or decrease the amount by a fixed percentage annually. Appropriation levels are not calibrated to achieve specified outcomes, nor to incentivize the efficient use of institutional resources or reward specific performance indicators. Many states combine incremental funding with performance-based funding to enable attention to outcomes-based funding.

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