This book explores how to forge policies that preserve the internal autonomy required for campus creativity and diversity while ensuring the external accountability demanded for campus performance and results. It attempts to separate the reality and rhetoric of performance funding. The chapters are: (1) "The New Accountability"; (2) "Performance Funding and Budgeting: Old Differences and New Similarities"; (3) "Performance Funding Indicators: Imperfect Necessities"; (4) "Performance Funding: Campus Reactions"; (5) "Twenty Years of Performance Funding in Tennessee: A Case Study of Policy Intent and Effectiveness"; (6) "Integrating Budget, Assessment and Accountability Policies: Missouri's Experiment with Performance Funding"; (7) "Ready, Fire, Aim: Performance Funding Policies for Public Postsecondary Education in Florida"; (8) "Ohio's Challenge: A Clash of Performance Funding and Base Budgeting"; (9) "Performance Funding in South Carolina: From Fringe to Mainstream"; (10) "Performance Funding: Easier To Start Than Sustain"; (11) "Performance Funding: Assessing Program Stability"; and (12) "Arguments about Performance Funding: Rhetoric and Reality." A conclusion discusses "Linking Funding to Performance: A Trend, Not a Fad." (Contains 46 tables, 14 figures, and 236 references.) (SLD)