The study presented in this paper was conducted to determine whether states with performance budgeting and funding (PBF) programs had improved institutional performance of higher education over the five years (1997 through 2001) considered in this study. First Time in College (FTIC) graduation rate was used as the measure of institutional performance. In the study, the unit of analysis is institution level and the study population is all public four-or-more-year institutions in the United States.
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