The Chronicle and how state funding is changing

This morning I spotted a very interesting read from the Chronicle of Higher Education about performance-based funding’s growing popularity among legislatures around the country.

The idea is that funding schools based on their performance in particular measures (think graduation rates, professional certificates awarded, credit hours completed, etc.) would reward the most efficient schools while squeezing the most out of every education-allocated state dollar during tough economic times.

Last fall, Missouri adopted performance measures and I covered them pretty thoroughly (and skeptically) in my reporting.

But the end of the Chronicle’s article hits on an important point that I’ve heard here in Missouri. When I spoke with UM System admin Nikki Krawitz last fall, she pointed out that the higher ed relationship goes both ways — while colleges and universities have to do more with less, the state bears plenty of responsibility to get those schools the resources they need.

Over the long term, that trend toward regulatory freedom will only increase, Mr. Reindl says, especially as the states’ shares of college budgets gets smaller. “Campuses,” he says, “are coming to lawmakers saying, If you are not going to give us as much money, should you really have the same amount of control?”

In December, UM Chancellors Leo Morton and Brady Deaton told the Board of Curators they’re under pressure from donors who feel they’re money is just supplementing state support. From my article about the December board meeting:

Deaton said several donors he has spoken with have said they will not continue to give to MU if state support keeps dwindling, specifically because they don’t want their money filling a funding gap created by the state.

Now, Missouri ranks 45 out of 50 in state funding per capita in higher education so it’s fair to say that the colleges and universities have been doing more with not just less, but nearly the least.

So without state support, what’s the future model of higher education for Missouri colleges, including the UM System? That’s, very literally, the multi-million dollar question.

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