Tag: higher education funding

House panel seeks success in creating higher ed performance-based funding plan

      A House effort to arrive at a successful performance-based model for funding the state’s colleges and universities launched on Tuesday.

Representative Brenda Shields (Photo: Tim Bommel, Missouri House Communications)

      The House Special Interim Committee on Higher Education Performance Funding held an introductory hearing, in which it heard several presentations about the past attempts at performance-based funding. 

      Committee Chair Brenda Shields (R-St. Joseph) said it’s important to know what’s come before.

      “This has been attempted several times.  We haven’t been successful,” Shields said.

      She said if there is to be a chance for a better result this time, everyone must have a seat at the table.

      “It’s going to require us to engage all the stakeholders.  That’s all of our universities and our community colleges, all of our institutes of higher education along with the [Department of Higher Education] to be able for us to be successful in developing a formula that actually has a measurement model to it.  How do we know how we’re performing if we don’t have measurements?  So that’s what we’re really looking for, is how can we measure our fixed costs, the variable costs, and then our performance funding on top of that, so that our universities actually know what they’re working towards.”

Representative Kevin Windham (Photo: Tim Bommel, Missouri House Communications)

      Shields said if not all of the state’s institutions have buy-in, any new formula will be doomed. 

      “If [a legislator] doesn’t feel as if their individual university that they represent is happy, they will vote against it, or I believe I will vote against it if my university felt as if they were not receiving fair funding.  I would vote against it and it would bring the people of my region against it, and it’s really hard to pass a formula unless you feel as if everyone is a winner somewhere in that formula.”

      What the legislature is using now in setting higher education funding is a “base plus” model, but Shields said no one has been able to tell her where that base came from.

      “Every year, if the legislature thinks that we can afford a three-percent increase, we use the current base and we add three percent to it.  First of all, nobody can explain how the base was created.  Secondly, it doesn’t take into account that things have changed, so we give everybody a three percent increase based on their base and maybe their student enrollment has increased dramatically.  Maybe it’s decreased dramatically.  Maybe they’ve taken on teaching some degrees that are more expensive to offer … and we haven’t taken any of that into account.  We just continue to add a percent to this base number that no one can remember how it was created.”

MU System President Mun Choi addresses the House Special Interim Committee on Higher Education Performance Funding (Photo: Tim Bommel, Missouri House Communications)

      Tuesday’s hearing set the Department of Higher Education to the task of creating a work group with representation from all the institutions of higher education in the state. 

      “They will begin to sit down and break down what’s the fixed cost.  Let’s define ‘fixed costs,’ what are your fixed costs, what are the variable costs of running an institution, and then of course, what should be our measurements for a performance funding model?  They will agree upon what those measurements are and then we’ll move from there.”

      Shields said the goal is not to pass a new funding mechanism in the 2025 legislative session.

      “What our hope is for the ’25 session is that we have a system in place which we can test and simulate and make tweaks to, and so we will spend the entire ’25 session making tweaks.  I do not believe that we’ll pass legislation in ’25.  I think the soonest that we’ll pass legislation will be in ’26 for use in ’27.”

      The committee will meet three more times this year.

Budget subcommittee chair to recommend delay in basing college, university funding on performance

The Chair of the House subcommittee that deals with education funding says he will recommend the legislature put off a performance-based funding mechanism for state-supported colleges and universities.

University of Missouri System President Mun Choi testifies to the House Appropriations Subcommittee on Education on January 31, 2018. (photo; Tim Bommel, Missouri House Communications)

Cedarcreek Republican Lyle Rowland’s subcommittee heard from those institutions’ presidents over the course of two days and said many of them wanted the same things:  a delay in implementation of that plan, and a restoration of their core funding.

The state budget proposed last month by Governor Eric Greitens (R) would cut higher education funding by 10-percent, or roughly $100-million, from its Fiscal Year 2018 level.  Also in early January, the Coordinating Board for Higher Education approved linking 10-percent of funding for publicly-backed colleges and universities to performance factors such as students’ job placement, degree completion, and budgetary practices.  The model would look back at institutions’ performance over the past three years.

The combination means it is possible, though unlikely, that any given institution could see a decrease of as much as 20-percent in year-to-year state support.

Rowland said he agrees with the institution presidents who told him implementing performance-based funding now puts them at a disadvantage.

“[Institutions] didn’t know what their standards were going to be.  They didn’t know how to change their operation of their colleges and universities to help meet those goals,” said Rowland.  “With them not knowing what standards were, what those areas of concern are going to be, they have no way of implementing it, so it was going to hurt them financially.  We don’t want to hurt them financially.”

He wants to postpone that plan for three years so that institutions will know what areas to work on before their support is tied to them.

“We want to give them the opportunity to build up before we start with the funding model and then let’s put x-amount of new dollars into performance funding then and if you’re not meeting it you’re not going to get all of that funding.  We’re going to redistribute that to the other schools and universities.”

Rowland’s panel on Wednesday heard from University of Missouri System President Mun Choi, who touted to lawmakers the system’s accomplishments but coupled that with words of caution.

He said 90-percent of Mizzou’s students found a job within six months or moved on to graduate school; research is yielding advancements in the agriculture and medical fields; and Missouri S&T last summer beat out other universities from around the world in a competition to design a Mars rover.

“Those kinds of stories are peppered throughout all of our campuses but our ability to continue these programs is in jeopardy because of the cuts that we’ve experienced,” said Choi.

Lincoln University Interim President Michael Middleton echoed Choi’s call for a restoration of core funding and a delay in the performance model.

Representative Lyle Rowland (photo; Tim Bommel, Missouri House Communications)

“We are about as lean as we can be.  We’re already seeing that giving multiple responsibilities to individuals affects our productivity, which I believe is reflected in the number of students we’re able to recruit and retain,” said Middleton.  “With this [proposed] additional wave of cuts we are in a perfect storm with no clear break in the clouds.”

As for the proposed cut to core funding, Rowland said the governor’s proposal is not likely to stand, but given the state’s overall economic picture some reduction is probable.

“I’m sure there will be some cuts.  What we’re trying to do is try to make it as little as possible,” said Rowland.  “We’re hoping to be able to locate some things [elsewhere in the state budget] that we might be able to transfer into higher ed.”

The ranking Democrat on the House Budget Committee, Kip Kendrick (Columbia), has been one of several lawmakers expressing concern about the timing of performance-based funding.  He thinks most legislators will agree it should be pushed back.

“Higher education institutions across the board were on the same message about this, whether they were going to receive an additional hit from the performance funding model or not,” said Kendrick.  “Everybody was very tepid in having that implemented in a year where there is a potential for up to 10-percent of additional cuts to higher education.  We can’t penalize institutions on top of the additional cuts that they’re receiving this year.  It’s way too punitive and not the right year to implement it.”

Rowland will submit his recommendation to the full budget committee.  That committee will develop its own state budget proposal to be considered by the full House.  Eventually the House and Senate will have to agree on a state spending plan to be sent to the governor.