MO 4-year universities and 2-year colleges are funded through a combination of state and local funds and student tuition and fees.
2-year colleges receive the majority of their budget from the state, while 4-year universities have relied more heavily on tuition and fees in the last 10 years.
When adjusting for inflation, MO state funding for higher education has declined over the last decade, while state and federal aid and student tuition and fees have increased.
In MO, 4-year universities and community colleges (also known as 2-year colleges) are funded through (State Higher Education Finance, 2024):
At the state level, $902 million is allocated for 4-year universities (MDHEWD, 2023). Of that, 70% is designated for general operations, 22% for RAM purposes, and roughly 8% is for public financial aid. All RAM funding is allocated to 4-year universities, while all local funding is allocated to 2-year colleges. In 2024, of the roughly $173 million allocated to 2-year colleges, just under 40% was comprised of local funds, with 45% from the state for operational purposes, and 15% from state public financial aid.
Since 1980, tuition rates have increased from an average of 2 operating budgets to 56% at 4-year universities and 26% at 2-year colleges (State Higher Education Finance, 2024). As recently as 2014, only 24% of 4-year university budgets were made up of tuition and fees (MDHEWD, 2014).
In the last decade, MO universities and colleges have experienced stagnant or decreasing state funds when adjusted for inflation (Figure 1). State education funding has overall decreased from $9,900 per FTE student, adjusted for inflation, in 1980 to $8,100 per FTE student in 2023 (State Higher Education Finance, 2024). In contrast, the average funding per FTE student across the U.S. was $11,000 in 2023.
In MO, the total number of students receiving aid has decreased from more than 75,000 in 2012 to 59,500 in 2024. However, the amount of state aid has increased from $97 million to more than $149 million, and the amount of aid per student has increased from $1,700 to $2,500 when adjusted for inflation (MDHEWD, 2023; MDHEWD, 2012). Students may use these awards at public or private institutions, and at 2-year or 4-year programs.
Federal aid for MO students to attend public institutions has increased slightly, from $3,200 in 2005 to $4,600 per student in 2024, adjusted for inflation (DoEd, 2024; DoEd, 2024; DoEd, 2024).
In MO, the average cost of attending a 2-year institution for an in-state student has increased from per year in 2024, adjusting for inflation (MDHEWD, 2007; MDHEWD, 2023) (Figure 1). The average cost of a 4-year institution has increased from $9,200 in 2007 to $10,700 per year in 2024, adjusted for inflation, although in 2022 and 2023, tuition decreased to an average of $9,900 per student (MDHEWD, 2022; MDHEWD, 2021). Out of state student tuition, adjusted for inflation, has increased from roughly $7,000 in 2007 to $8,500 in 2024 for 2-year students, and from $18,500 in 2007 to $21,500 for 4-year students.
Figure 1: 40-year state funding per Full Time Enrollment (FTE) student for MO public universities and 2-year colleges, adjusted for inflation, compared to the national average and tuition rates. The average educational appropriations per full time student for MO (blue) and the U.S. (yellow). Tuition rates for MO 2-year (green) and 4-year (light blue) universities are shown. The average U.S. tuition rate for 2- and 4-year institutions is shown in purple. Average educational appropriation data are from State Higher Education Finance, 2024; and in-state tuition data are from the Missouri Department of Higher Education and Workforce Development (DHEWD) Annual Reports from 2007 to 2023.
References
Federal Reserve Bank of St. Louis (2023). Adjusting for Inflation. https://www.stlouisfed.org/publications/page-one-economics/2023/01/03/adjusting-for-inflation
Missouri Department of Higher Education & Workforce Development (MDHEWD) (2023). Annual Report. https://dhewd.mo.gov/about/documents/annual-report-2023.pdf
Missouri Department of Higher Education & Workforce Development (MDHEWD) (2022). Annual Report: Core Budget Recommendations. https://dhewd.mo.gov/about/documents/2022AR-CoreBudgetRecommendations.pdf
Missouri Department of Higher Education & Workforce Development (MDHEWD) (2021). Annual Report: Core Budget Recommendations. https://dhewd.mo.gov/about/documents/2021AR-CoreBudgetRecommendations.pdf
Missouri Department of Higher Education & Workforce Development (MDHEWD) (2020). Annual Report: Core Budget Recommendations. https://dhewd.mo.gov/about/documents/CoreFundingRecommendations_annualreport2020.pdf
Missouri Department of Higher Education & Workforce Development (MDHEWD) (2019). Annual Report: Core Budget Recommendations. https://dhewd.mo.gov/about/documents/core-budget-recc.pdf
Missouri Department of Higher Education & Workforce Development (MDHEWD) (2018). Annual Report: Core Budget Recommendations. https://dhewd.mo.gov/about/documents/fy18appendix_g.pdf
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Missouri Department of Higher Education & Workforce Development (MDHEWD) (2016). Missouri Comprehensive Fee Survey for Public Institutions of Higher Education: FY2016. https://dhewd.mo.gov/data/documents/FY2016%20Summary_final.pdf
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Missouri Department of Higher Education & Workforce Development (MDHEWD) (2014). Annual Report. https://dhewd.mo.gov/news/documents/AnnualReport-Finalforweb.pdf
Missouri Department of Higher Education & Workforce Development (MDHEWD) (2014). Current Fund Revenues At Public Baccalaureate Degree-Granting Institutions, By Source, FY 2014. https://dhewd.mo.gov/data/statsum/2014-2015%20Statistical%20Summary/table089_090_FY14.pdf
Missouri Department of Higher Education & Workforce Development (MDHEWD) (2013). Annual Report. https://dhewd.mo.gov/documents/MDHE_AnnualReport-final.pdf
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Missouri Department of Higher Education & Workforce Development (MDHEWD) (2007). Tuition and Required Fees for Typical Full-Time Students (30 Hrs. Annualized Credit) Enrolled in Public Institutions for the 2006-2007 Academic Year. https://dhewd.mo.gov/files/table14_15_0607.pdf
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U.S. Department of Education (DoEd) (2024). Federal Pell Grant Program Annual Data Reports. https://www2.ed.gov/finaid/prof/resources/data/pell-data.html
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U.S. Department of Education (DoEd) (2024). Federal Student Aid: Title IV Program Volume Reports. https://studentaid.gov/data-center/student/title-iv
