Nixon Unveils Performance-Based Funding Proposal During MSU Visit

SPRINGFIELD, Mo. -- Missouri Governor Jay Nixon wants colleges and universities to prove themselves before getting state cash.

Jay Nixon stopped by Missouri State University Wednesday to propose a $34 million performance-based plan. Schools would have to meet state standards for graduation rates and other things to get the most money.

"Instead of basing funding merely on what schools have received in the past, this new funding is tied to specific performance goals," he said.

MSU President Dr. Clif Smart says the school would look at adding new programs, such as occupational therapy, and increasing pay.

Nixon unveiled the following performance benchmarks:

Student Retention and Progress: This benchmark can be met by achieving a strong freshman to sophomore retention rate or by improving the number of full-time students completing 24 credit hours within their first academic year.

Graduation Rate and Degree Completion: This benchmark can be met by increasing the total degrees awarded or by improving the six-year graduation rate.

Quality of Student Learning: This benchmark can be met by students achieving better test scores in their fields of study or by students earning more professional licenses in their trade.

Financial Responsibility and Efficiency: This benchmark can be met by colleges and universities making sure a higher percentage of their dollars make it into the classroom or by institutions contributing more to the total revenue make-up of their budget.

Institution-specific goal: This benchmark can be met by achieving a goal specific to the institution's mission.

"We chose a measure of actually increasing the number of graduates in science, math and health care fields," says Smart.

Missouri State University met all the benchmarks. That translates to about $3.3 million if the governor's budget is approved. Dr. Clif Smart supports the change.

"Very supportive of that and have been an advocate for that -- and a partner in actually developing that the last two years."

Still, Ozarks Technical Community College would be getting less than the maximum possible. It met 80 percent of the benchmarks, so it could get a more than $430,000 boost -- or a 4.3 percent hike.

We asked the governor if he would face any challenges getting his plan approved in the legislature. He says he's optimistic.

"When you're doing anything different than you're doing in the past, you always have a burden to prove to folks."

State Representatives Mike Lair, who serves on the Joint Committee on Education, says the governor's budget is based on some things that haven't happened yet. A plan similar to the governor's is also under discussion in the Missouri legislature.

Read More: Missouri Lawmakers Mull Higher Education Funding Formula

"There are two definite plans," says Rep. Lair. "His he touted in the state of the state, but, you know it's a paper tiger. It has no money."

The governor also freed up $8.4 million for higher education earlier this week, reversing his cuts.