During the 2007 legislative session, the General Assembly passed SB 389, which established the Higher Education Student Funding Act (HESFA) in Sections 173.1003-173.1006, RSMo. The act limited public institutions of higher education to raising tuition and required fees for Missouri resident undergraduate students to that of the consumer price index. If public institutions of higher education exceeded their allowable increase, they incurred a penalty or could request a waiver of the penalty.  The CBHE initially adopted a policy for implementation of HESFA on December 18, 2008. A revised policy was adopted on January 14, 2009.

During the 2018 legislative session, the General Assembly passed SBs 807 & 577, which modified the parameters set forth in HESFA. The new parameters allow public institutions of higher education to increase tuition and required fees for Missouri resident undergraduate students by consumer price index plus an amount (no greater than 5%) that would produce an increase in net tuition revenue no greater than the dollar amount by which state operating support was reduced in the prior fiscal year.

 

MDHEWD staff developed a draft internal model for how the new HESFA parameters will be calculated beginning with the 2019-2020 academic year, which can be viewed here. Furthermore, MDHEWD staff drafted a proposed rule based on the current CBHE HESFA policy, which can be viewed here.