Today, community colleges are challenged to maintain their historical identity of open access while increasing student success. This challenge is particularly salient in the context of performance-based funding models. These models create student achievements, which determine institutional levels of state funding. Therefore, these new student success metrics are important to the fiscal health of community colleges. In an effort to better identify the likelihood of meeting these metrics, some scholars have suggested "leading indicators." The purpose of this study was to examine the effects of leading indicators on transfer to a four-year institution and associate degree completion for community and technical college students at Kentucky's two-year public institutions for groups based on student characteristics. Logistic regression analyses showed that leading indicators do predict transfer to a four-year institution and associate degree completion, but with varying levels of affect. Earning 30 credit hours by the end of the first year, passing a summer class and completing a college-level English class had the greatest effect on transfer to a four-year institution and associate degree completion. For performance-based funding models to be most effective and fair, policies and practices should consider precollege factors in their models. Also, these findings have implications for institutional level policy-making and practices.