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Study on Higher Education Performance Funding and Efficiency/Reforms


NCHEMS is assisting the Missouri Department of Higher Education and Workforce Development (MDHEWD) with a study of their funding model, specifically to consider how to incorporate performance funding elements, and to develop recommendations for improving efficiencies within their higher education ecosystem.

Challenges Approach Impacts Resources


Missouri developed a performance funding model, but its legislature has not including funding for it in the budget bill since 2016. Legislation introduced in the last several sessions has included a new model for funding institutions. MDHEWD wants to be prepared with recommendations for how best to fund the state’s public institutions, including through performance measures, that is aligned with state needs.

In addition, MDHEWD is seeking information and recommendations about how to encourage improved efficiency and effectiveness among its public institutions.


NCHEMS will conduct a comprehensive review of MDHEWD’s performance funding model, as well as review relevant literature and examples from other states, and make recommendations for a funding approach that fits Missouri’s context. This work will draw heavily upon robust data collection and analysis, as well as stakeholder engagement and input.

NCHEMS will also conduct a review of, and make recommendations about, higher education efficiency and possible reforms. This is a second phase of the project and will draw on survey information from other states and from Missouri’s public institutions. NCHEMS will also develop data analyses that pinpoint the varying ways that each state institution is serving the state and its region.