The Community College Research Center is engaged in an ongoing study of outcomes-based funding in three states: Indiana, Ohio and Tennessee. A November 2014 working paper looks at the policy instruments used to implement the new funding policies as well as the impacts, obstacles and unintended consequences of such policies. The study takes a look at the potential impact on student outcomes as well as reported changes in institutional policies, programs and practices such as developmental education and course articulation and transfer, and in student services, such as advising and counseling and tutoring and supplemental instruction. Obstacles include inappropriate metrics and insufficient organizational capacity, particularly around institutional research. Unintended consequences include changes in admissions requirements or academic standards that would help drive completion rates higher. Changes in admission requirements could include higher academic requirements, more selective recruitment, and a shift from need-based aid to merit-based aid. Efforts to weaken academic standards might include lower class demands or reduced degree requirements.