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New Funding Model for Higher Education

New Funding Model for Higher Education

Last week the Higher Education Committee (Chair: Mike Thomson) held an executive session where a member of the Joint Committee on Higher Education (JCHE) presented a higher education funding model proposal.  If passed, the legislation for the funding of higher education will be implemented in fiscal year 2015.  University of Missouri system schools are public; and, students, staff, and other stakeholders will need to understand how they are affected by the new funding model.
96th Regular Session
Last legislative session, House Bill 1731 assigned the Joint Committee on Higher Education to develop a model for appropriating funds to public higher education institutions.  The group achieved its goals by researching current funding practices and reform efforts, identifying funding disparities, and reviewing how Missouri allocated funds to state-supported institutions in the past.  The objective of the assignment aimed to provide a rational basis for the appropriation of supporting operational expenditures and to incentivize institutions to meet goals and sustain excellence.  In other words, state-supported institutions would receive funding based on the school’s need and performance. Another bill, HB 1042 (2012), was filed during this session.  This bill proposed that remediation practices be assessed and improved, a core course library facilitate smoother transfers, and that schools include a policy to support reverse-transfers to increase the number of Missourians with post-secondary degrees and credentials.  The hearings for this bill gave JCHE more information with which to frame the new model of funding.  The group further refined its mandate.
The New Model
The model is designed to have the state share of the core operating budget estimate be adjusted to meet available appropriations, where ten percent would be reserved for performance funding.  Its contents provide a product that is built to even-handedly assess, appropriate, and allocate the state’s resources to post secondary institutions.  The new model defines core operating expenditures and differentiates those from other expenditures like hospitals, bookstores, and other auxiliary enterprises of an institution.  It uses the Carnegie 2010 Basic Classification and sector specific modifiers to categorize and provide an allocation/appropriations matrix.  Because instruction represents the largest percentage of education and related expenditures, the model considers these factors, as well. The JCHE has used Carnegie classifications to separate the states’ varied colleges into four groups, Technical, Associates, Baccalaureate, Master’s and Research Colleges and Universities.  The four classifications are assessed and receive commensurate appropriations or support from the state.  Other factors included in core operating requests are instruction, research, public service, academic support, student services and institutional support.
Proposed Model Framework
The new funding model for higher education ensures that the institution receives ninety percent of its core operating support, but creates a way to help institutions earn the remaining ten percent through the newly proposed performance metric. State Share of Operating Budget Estimate: (Instruction + Research + Public Service + Academic Support + Student Services + Institutional Support) X sector specific modifier = State share of Operating Budget Estimate Performance Funding: 90% of the state share of the operating budget estimate is automatically included in the appropriations request, the remainder of the state share of the operating budge estimate.

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0 0 2353 15 February, 2013 Uncategorized February 15, 2013

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