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ST. LOUIS (AP) — A new proposal could tie 10 percent of currently dwindling state dollars to how well Missouri colleges produce graduates and keep costs down.

Performance funding has been around for several years but was only tied to new money for higher education. The funding method was moot this year when there was no new money to give out, the St. Louis Post-Dispatch reported.

A 10 percent tie would mean that $970,000 could be on the line for Harris-Stowe State University, while nearly $42 million could be on the line for the University of Missouri System.

The percentage may not sound like a lot of money, but it’s “enough to matter,” said Zora Mulligan, the state’s higher education commissioner.

The proposal is expected to come up for a Jan. 2 vote by the Coordinating Board for Higher Education. The board will also likely vote to ask the governor to fund higher education at the same level as this year, when schools took a 9 percent hit in state funds that amounted to $88 million and led to hundreds of layoffs.

Gov. Eric Greitens said he approves the push toward outcomes-based funding.

“We support the move to increase accountability for performance across our government, including in higher education,” said Drew Erdmann, Greitens’ chief operating officer.

The proposal includes a system to help schools that don’t hit all of their performance standards. Should the proposal pass, the money schools lose when they miss a standard will go back to the Higher Education Department so it can use the money to help improve the school.


Information from: St. Louis Post-Dispatch,