Input and output-based funding is a funding model that reflect both the funding levels in terms of input and the expected output or outcome per each unit of the input.
Advantages
This model promotes accountability and transparency in the process.
Will aid in aligning incentives with expected output.
This can encourage innovative thinking and improve performance and overall efficiency.
Disadvantages:
Measuring and attributing outcomes or expected output may be challenging
There is a possibility of generating conflict over spending priorities and the quality of works and services.
There is possibility of transferring risks to the providers and/or investors
Which model would you prefer in your context and why?
The cost centre model: This is where the program is factored in the national budget so that funds are drawn from the central operating budget.
This is because, there is an assurance of the availability of funds as compared to where money is expected to be generated from the fees paid. Students may not be able to pay fees in time hence hindering the program from running.
Zambia uses the out-put based funding and all funds are tied to Performance which is an advantage. However this model of funding is based on an ideal situation which in most cases there are alot of changes during the actualization of the activities and disadvantages the implementing agencies. Unpredictable Situations that come after funding is done are hard to resolve.
The input budget is predictable and may work out well but lacks efficiency. A blend of both may still work out well.
Input-based funding refers to the resources and inputs required to deliver a particular educational program. Its advantages include; Adequate resources. Equity and stability.
Output-based funding is a type of funding mechanism where financial resources are allocated based on predetermined output. Some of its advantages include; flexibility, accountability and efficiency.
An output is also known as a performance budget. It is a type of budget that reflects both the funding levels (input) and the expected output from each unit of the [organization.The disadvantage of this way of funding is it can be manipulated to sho that expected results have been met. The advantage is that it can motivate schools to work hard
Input-based funding entails facilitating performance by an educational institution by providing the needed resources. This positions an institution for success, all other factors held constant. on the other hand, Output-based funding acknowledges and rewards good performance - as a way of encouraging good performance.
I therefore think a hybrid of the two models might be better in my view
Out put - based funding is the kind of funding which is based or focuses on the expected output and outcome. This has some advantages in that one can be able to project the outcome. Disadvantage is that the expected outcome is dependent on the prevailing circumstances during the process of production process.
Input based funding is a funding approach that where funds are allocated basing on predetermined activities.
This has some advantages in that there equity in funds allocation because the activities are clearly understood. one can also be able to predict a budget that will be sufficient for the institution.
in a school setting, input based funding may have some disadvantages in that at times management might allocate funds basing on student enrolment without putting in consideration the Key Performance Indicator such as performance.