Missouri Policy Journal


Performance-based funding is a strategy that connects state funding directly to institutional performance on public campuses through indicators such as student retention, graduation rates, and cost efficiency. The policy was first adopted by Tennessee in 1979; since then many states have experimented with measures that attempt to finance higher education based on university performance. Missouri has a history of allocating additional state resources on the basis of performance through the Funding for Results program from the 1990s. This paper examines the history of performance funding policy in Missouri, the policy changes since its first enactment, and potential challenges with such funding strategy.