Senate Bill 437 Summary

• Repeals previous community college funding provisions and establishes a new higher education funding model under sections 173.1500 to 173.1535 that applies to all public institutions of higher education.

• Creates a weighted student credit hour funding formula based on course discipline clusters (ranging from basic skills to advanced medical/legal programs) and course level (lower division through doctoral), with institutions receiving funding calculated through peer comparison groups and sector-specific modifiers.

• Designates 10 percent of each institution's appropriation as performance funding, contingent on institutions meeting five institutional performance measures adopted by the coordinating board for higher education.

• Establishes floor protections requiring institutions to receive no less than 98 percent of prior year appropriations when total higher education funding increases, and creates a "Higher Education Performance Fund" to administer performance-based disbursements.

• Requires the joint committee on education to review the funding model's functionality every five years beginning in academic year 2018-2019, consulting with the coordinating board, department of higher education, academic researchers, and education organizations.