Missouri Senate

Perfected

This act requires the cooperative development of a university resource allocation model by the public four-year institutions of higher education, State Technical College of Missouri, and the Department of Higher Education. The Coordinating Board for Higher Education must approve the model. The model will expire on June 30, 2016.

The core funding level for each institution will be the appropriated amount for each institution for fiscal year 2014. This amount must be adjusted annually in accordance with the model beginning in fiscal year 2015. The Department must evaluate the model's effectiveness and submit a report to the Joint Committee on Education, the President Pro Tempore of the Senate, and the Speaker of the House of Representatives by January 1, 2016 and every four years thereafter.

Unless otherwise provided by the General Assembly during the appropriations process, any annual increases in appropriations from the previous fiscal year's state funding level will be distributed through the model in the following manner: at least ninety percent of the increase will be distributed based on the institutional performance measures; no more than ten percent of the increase will be distributed to address inequitable state funding on a per student basis, inequitable state funding determined on a per credit hour basis, or a combination of the two, as described in the act. Any inequity that results from performance funding measures must not be considered when distributing funds to address inequitable state funding.

By July 1, 2015, the Coordinating Board for Higher Education must develop and adopt at least five institutional performance measures for each public four-year institution of higher education and State Technical College of Missouri, in collaboration with the institutions and the Joint Committee on Education. The measures must include, but need not be limited to, student retention, graduation rates, student job placement in a field or position associated with the student's degree level, and pursuit of a graduate degree. However, the job placement measure may not be used in any year in which the state unemployment rate has increased from the previous year's state unemployment rate. The Coordinating Board must evaluate and, if necessary, revise the measures every three years. The Coordinating Board must promulgate the institutional performance measures as administrative rules.

This act contains an emergency clause.

MICHAEL RUFF