> The schools also get more funding if the students perform poorly.

that's such a weird policy.

The teachers can produce poorly performing students easily (without much effort i might add), but cannot do that very same for well performing students (even with effort). The incentive to produce poor performing students to get more funding means it's misaligned with the student's best interests.

Schools and students _should_ be incentivized to perform well, and funding ought to be a portion of that incentive.