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. 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 Years 2018 and 2019, no new funds were appropriated to institution operating budgets for those years.
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. As directed by Coordinating Board policy, the Missouri Department of Higher Education reviews the performance funding model every three years.
The report, Performance Funding for Higher Education in Missouri, provides a detailed overview of the current performance funding model.
An updated Technical Manual is also available.