O'Brien D.E. & Revell, W.G. (2004). Performance-based funding. Job Training & Placement Report, 28(8), 1-3.
Article Summary
Performance-based funding has gained acceptance at a time of increased
consumer choice over service providers with greater emphasis on
attaining specific vocational goals. This practice ties payment for
services to the attainment of specific employment outcomes. To fully
utilize performance-based funding practices, there must be equilibrium
among individuals needing employment supports, agencies that provide
services and those that fund the services. The authors provide criteria
that are necessary for a system that meets the needs of each of the
three partners in this process.
The points in the provision of employment supports at which payments are
made must not only be weighted and spaced so that accountability is
maintained but must also allow service providers to meet their own
financial obligations. While it might seem fiscally prudent to withhold
payments until all employment services have been provided, this might
serve to limit service provision to only companies with large amounts of
working capital.
Payment amounts must be commensurate with a range of consumer outcomes,
so that service providers will not merely focus their efforts on
individuals with the greatest likelihood of employment success. Funding
must encourage providers to work with individuals with significant
degrees of disabilities who may attain varying outcomes.
The authors credit the Massachusetts Rehabilitation Commissions
Community Based Employment Services (CBES) and the Oklahoma Department
of Rehabilitation Services
Milestones Payment System with providing successful performance-based
employment services for individuals with disabilities.
Assessment and person-centered employment planning play key roles in the
overall provision of employment services as the long-term needs and
goals of the employee are matched with those of the workplace.
Performance-based funding programs in Oklahoma, Massachusetts, and
Louisiana corroborate the importance of initial planning by allotting
payment in contrast with the Social Security Administrations (SSA)
Ticket to Work program which does not pay for assessment.
Performance-based funding also needs to reflect assistance as
individuals with significant disabilities leave one job and move on to
another. Retraining for new and potentially better jobs is a reasonable
expectation of all members of the workforce. Both Oklahomas Milestone
system and SSAs Ticket to Work program support long term retraining
efforts.
While performance-based funding, by definition, is tied to specific
employment outcomes, it should also have enough latitude to provide
other services, such as assistive technology and communication aides,
that will enhance success for individuals with significant disabilities.