EDUCATION
Texas aims to tie community college funding to student outcomes, needs
COMMUNITY COLLEGE FUNDING State lawmakers will consider changing the funding model of community colleges in the 2023 legislative session. State money accounts for less than 25% of funding for Texas community colleges. Current model Schools receive a flat sum of $1.3M Additional funding is based on: • enrollment • growth • operational costs • other factors Proposed model Schools would receive money for credentials of value, which are postsecondary degrees or certificates More funds awarded based on: • more credentials in high-demand fields; and • students who transfer to four-year universities.
BY HANNAH NORTON
designate a specific amount of money to be distributed to individual community colleges. Each school receives a flat sum of approximately $1.3 million, then the state determines additional funding based on enrollment, growth, operational costs and more. According to the commission, state money accounts for less than 25% of funding for community colleges alongside student tuition and local property taxes. Under the proposed finance system, colleges would no longer compete for funding. Instead, schools would receive money for credentials of value, credentials awarded in high-demand fields and students who transfer to four-year universities, according to the draft recommendations. A credential of value is a postsecondary degree or certificate that prepares a student for
TEXAS Big changes may be coming to Texas’ community colleges as a commission established by the Texas Legislature in 2021 is set to recom- mend an overhaul of community college funding. The recommendations, created by the Texas Commission on Community College Finance, center around student outcomes, such as graduation and transfer rates, credentials of value and credentials in high-demand fields. The commission is also expected to propose an increase in need- based financial aid and expanded partnerships between colleges and local companies. Commission members, which include state lawmakers and community college leaders, met Sept. 12. Every two years, Texas lawmakers
Adjustments account for higher costs of educating students who need more support.
SOURCE: TEXAS COMMISSION ON COMMUNITY COLLEGE FINANCE/COMMUNITY IMPACT
economic success. Funding would also be adjusted to account for the higher costs of educating students who need more support, such as low- income students, “academically underprepared students” and adults who return to school. Smaller colleges, which typically face higher operating costs, would also receive additional funding.
These schools would be expected to participate in “shared services” with other institutions, such as shared online courses and joint workforce education programs. Commission members will vote on a final report and submit it to the Texas Legislature by Nov. 1. State lawmakers will review the recommendations during the 2023 legislative session, which begins Jan. 10.
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KATY EDITION • OCTOBER 2022
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