Allocating some state funds to higher education institutions based on performance has a long history in Missouri. Currently, Missouri’s performance funding model establishes a formula for allocating the majority of funding increases to higher education institutions based on specific performance measures. 

 

The Coordinating Board for Higher Education adopted the current funding model in 2012, based on recommendations from a task force of representatives from public higher education institutions, legislative staff, the governor’s office and the Missouri Department of Higher Education. A copy of the final report of the task force is available below.

 

Performance Funding Task Force Report

 

Prior to the passage of Senate Bill 492 in 2014, the performance funding plan was based on five measures, including such items as graduation rates, retention rates and financial responsibility. Four of the measures are common to all institutions within a sector, and one is selected by the individual institution to reflect its mission and scope. Each higher education institution earns one-fifth of its available performance funding by meeting each of its measures. Colleges and universities received new funding according to the performance funding formula in fiscal years 2014, 2015, and 2016.

 

Senate Bill 492 established performance funding in state statute. The legislation also called for a sixth performance item “to measure student job placement in a field or position associated with the student's degree level and pursuit of a graduate degree.” In order to implement the statutory requirements and to make necessary adjustments to the existing model, the MDHE established a second performance funding task force, with similar membership as the original. This task force made recommendations for implementation of the graduate outcomes measure, change processes for performance measures and peer groups, and several other suggested revisions to the framework. These changes were adopted by the Coordinating Board in November 2014.