Giving Compass' Take:

• Amelia Harper reports that some Texas lawmakers are considering shifting to outcome-based funding for public schools, but critics worry it will deepen the divide between schools. 

• How can funders help to clarify the effects of outcomes-based funding? 

• Learn about performance-based funding for higher education. 

As Texas lawmakers consider increasing state education funding, some state education leaders fear a turn to outcome-based funding methods for part of that formula, allocating more money to schools based on 3rd-grade reading test scores and the number of graduating seniors who prove to be college- or career-ready, KCBD reports.

Top state officials have signaled their support for a plan recommended by a state-appointed school finance panel to spend a portion of the recommended education funding — about $800 million — on incentivizing superintendents to improve 3rd-grade reading scores and success rates of high school seniors. A similar idea has been tried in Arizona and appeals to some Texas business leaders and taxpayers looking for a better return on state education investment.

However, many education leaders are concerned such outcomes-based incentives will direct the flow of funds from schools that need it most, creating greater funding inequities between districts, and that it will simply encourage teaching to the tests or attempts to game the system. Texas has never tied funding to school performance before, and despite recommendations, lawmakers have yet to propose a bill in support.

Read the full article about outcome-based funding for education by Amelia Harper at Education Dive.