This paper discusses the effect performance funding has had on funding and quality enhancement at three research universities as implemented over the past six years. The presentation details the accountability requirements and the relationship they have had on funding levels. It describes the cost-benefit ratio of maintaining and responding to the required indicators, and how collaborative efforts among the institutions have brought about positive reform in the state. This discussion will cover budget processes and trends across the United States relative to funding for performance and quality. Suggestions for implementation and improvement of existing systems are also discussed.