Financing and Investing in Results: What does it take?

• A compelling vision. Powerful visions – such as clear and compelling goals for improving children’s lives – are magnets for resources.

• Aligning financing with results. The goal is to invest in policies, programs and practices that research and experience indicate will contribute to better results for children. Policymakers can act to ensure that desired results drive financing, instead of available funding driving policy and programs.

• Effective use of existing resources. The number one financing priority is to use resources that you already have to pay for better results. Fiscally responsible approaches that are accountable to taxpayers focus on spending existing funds in more effective ways.

• Packaging financing. No single financing approach will support the change required to achieve ambitious targets for improving children’s lives. The best results are accomplished with financing packages that draw from a wide array of resources, instead of getting stuck on a single funding stream or financing approach.

• Leveraging resources. Even small amounts of money can be leveraged to have positive impact. For example, grants from foundations or the federal government can provide seed money for shifting investments.

• Local-state-federal-private financing partnerships. Federal policies, funding streams, and regulations have an enormous impact on the well-being of state residents. Likewise, communities are dramatically affected by both state and federal financing. While cost shifting across levels of government can have dire consequences, carefully crafted agreements developed in partnership can provide powerful incentives for change.

Questions to Consider.

• How will this affect college completion? With state budgets stretched to the limit, or worse, and with family budgets in equally rough shape, where will the money come from to support increased college completion? Policymakers will need to think strategically and creatively about every dollar they give to (or take away from) higher education. Every higher education budget, tuition, or policy decision should be run through the “how will this affect college completion” filter. The Lumina Foundation for Education’s “Four Steps to Finishing First in Higher Education” is a guide to help policymakers with the challenge of increasing productivity in a time of flat or shrinking resources.

How can policymakers invest in increasing college graduation?