Daytona Beach Community College is tying faculty and staff salaries to enrollment. http://insidehighered.com/news/2006/06/22/daytona
There is always a problem with administrators pressuring teachers to give good grades to keep enrollments up. Now teachers have financial incentive to not fail students. If students catch on to this, I would expect effort (and as a result actual learning) to drop as a result of this.
