This chapter discusses Washington State's Student Achievement Initiative, a new performance funding system for community and technical colleges. Its purposes are to improve public accountability by more accurately describing what students achieve from enrolling in state colleges each year and provide incentives through financial rewards to colleges for increasing the levels of achievement that their students attain. It represents a shift from funding entirely for enrollment inputs to funding for meaningful outcomes as well. The State Board for Community and Technical Colleges and staff believe this initiative will create momentum for both students and colleges. As colleges gain a better understanding of where students get stuck and develop strategies to move students past those hurdles, they will receive financial rewards. The investment of those dollars into expansion of proven strategies will yield additional rewards that can be invested in additional strategies. (Contains 3 tables and 1 figure.)