Report indicates tying funding to performance improves neither.

A study conducted in Washington State suggests that tying state support to graduation rates is self-defeating.  Fewer resources simply ensure ever lower performance levels.... a downward spiral.
http://chronicle.com/article/More-States-Tie-Money-to/151183/?cid=at&utm_source=at&utm_medium=en

http://www.peterlang.com/index.cfm?event=cmp.ccc.seitenstruktur.detailseiten&seitentyp=produkt&pk=77271&cid=5&concordeid=312466