Performance Funding in Missouri
Allocating some state funds to higher education institutions based on performance has a long history in Missouri. Currently, Missouri’s performance funding model is used to allocate the majority of funding increases to higher education institutions based on specific performance measures.
The Coordinating Board for Higher Education adopted the basic structure of 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. The initial year that funds were allocated using the model was Fiscal Year 2014.
Performance funding models are inherently dynamic if they are to remain relevant and effective in promoting achievement of state goals. Since the initial implementation of performance funding, the Missouri model has undergone several revisions.
During the 2014 legislative session, performance funding was incorporated into state statute. The legislation also called for the establishment of an additional 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, a second performance funding task force, with similar membership as the original, was impaneled during 2014. That task force recommended revisions that were adopted by the Coordinating Board. In 2015, in response to major changes in the delivery of developmental education by Missouri community colleges, new measures of student success were adopted for that sector.
The current version of the Missouri model is based on broad goals that are common to all higher education institutions. The goals include student success and progress, increased degree attainment, quality of student learning, and financial responsibility and efficiency. Each institution is assessed based on five measures designed to reflect progress in achieving the broad goals. Specific measures include graduation rates, student retention rates and licensure/certification rates of graduates. Four measures are prescribed by the model, and one is selected by each institution to reflect its mission and scope. The “job placement” measure is still under development and has not been fully incorporated into the model at this time.
Each institution earns one-fifth of its available performance funding by meeting each of its measures. Colleges and universities received new funding through the performance funding formula for fiscal years 2014 through 2017. Although performance items were reported and compiled for Fiscal Year 2018, no new funds were appropriated to institution operating budgets for that year.
The report, Performance Funding for Higher Education in Missouri, provides a detailed overview of the current performance funding model.
2017 Review Process
As directed by Coordinating Board policy, the Missouri Department of Higher Education reviews the performance funding model every three years. While this regular review was already scheduled for 2017, additional issues raised by legislators and other policy makers prompted a more in-depth review of the model. In May, Commissioner of Higher Education Zora Mulligan appointed a task force of interested parties to undertake this effort. Task force meetings are scheduled throughout the summer. Updates about the work of the task force will be provided as they become available.
May 31 Meeting