Missouri's public universities and community colleges would need to implement performance-based funding under legislation given final approval by the Legislature.
Under the bill, the schools would work with the Department of Higher Education to develop goals that would then be used to determine part of their funding. Colleges also would be required to develop a performance criteria related to student job placement.
The performance-based goals would apply only in years the state can afford to increase funding for higher education, and lawmakers could choose not to follow the guidelines in a given budget year.
Missouri used performance standards to determine college funding increases during the current fiscal year.
The House voted 135-6 on Friday to send it Gov. Jay Nixon. It cleared the Senate earlier this week.