2: Performance
Tie federal funding more closely to performance. Other Information:
The federal government routinely provides monies to other organizations (state and local governments, educational institutions,
health care providers, and the like) to achieve some public purpose. But all too often, the accountability is process-based
— did the funds get spent the way they were supposed to? — not outcome-based. Moreover, to achieve process-based accountability,
federal rules often stifle creativity and innovation in organizations receiving support. The federal government could be a
catalyst for innovation if it tied its funding more closely to performance.
Stakeholder(s):
- State Governments
- Local Governments
- Educational Institutions
- Health Care Providers
- Department of Education: The Department of Education's Race to the Top initiative is a model for spurring organizational innovation. The department
offered $4 billion in grants to states committed to reforming their education systems. States that are unwilling to leverage
data and accountability systems to improve measurable performance outcomes, that have legislation preventing the development
or expansion of innovative school approaches, or that cannot demonstrate effective alliances with local teachers' unions on
performance accountability are not eligible.
- Tennessee: After Tennessee and Delaware were awarded the first $600 million, nonqualifying states worked to pass conforming legislation,
including addressing long-standing union issues.
- Delaware
- Universities: Race to the Top should serve as a model for using performance incentives to drive innovation across a range of government
agencies. For example, as noted, the federal government could make funding to universities partially contingent on how well
universities commercialize their research.
- Department of Transportation: Likewise, the Department of Transportation could allocate funding from the Highway Trust Fund on the basis of how effectively
states reduce traffic congestion.
Objective(s):
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