The biggest problem I see with performance based funding, is that it depends on the one cog in the machine that does not care one whit about funding - the kids. I work with a lot of kids, and there are many good students who will succeed no matter WHAT the latest and greatest learning strategy is. This is where these stupendous ideas are tested. There are also a lot of kids that don't give a crap, and will not work. They do NOTHING. Seems to me, all this is designed to make it look like they are doing something, despite their best efforts...Bottom line, the kids simply MUST do the work, and a lot of them will not. The result will be exactly what the powers that be are trying to avoid - the schools that do not succeed will be the same schools that do not succeed now. It is the kids/parents that won't do the work necessary to succeed who will make it fail.
