HIGHER EDUCATION
2023 EDUCATION EDITION
New ‘historic’ state law to reward community colleges for performance
REVERSING THE TREND Since 1980, the state’s contribution to Texas’ 50 community colleges has been steadily declining, causing the institutions to rely more on property taxes and tuition. O cials are hopeful a new law passed in the 88th Legislature this year will provide a path to more state funding to meet workforce needs. Revenue breakdown of Texas community colleges over time
BY JAMES T. NORMAN
colleges in Texas has been signi cantly updated in 50 years, Lone Star College Chancellor Stephen Head said. As someone who helped bring the bill forward, Head said for a long time he’s told state o cials the old system was not sustainable. Along with not aligning everyone’s goals in a cohesive direction, the old formula often punished smaller colleges, he said. For example, many rural areas are losing their population to larger metro areas, Head said. That makes it di cult for smaller colleges in those places to keep their operations going as enrollment drops. The new model The new law will help community colleges in Texas nd sustainable revenue. For many colleges, such as San Jacinto College, the mission will remain intact, albeit more supported at the state level, Vice Chancellor for Fiscal A airs Teri Zamora said. The law also has a newly placed emphasis on noncredit paths, Soto said. Those are paths that require cer- ti cation but are not standardized in the same way other degree programs might be, such as for truck drivers, electricians, and licensed practical and vocational nurses. “The state is going to nd a way that noncredit education can be credit that stacks,” Soto said. “It’s all for the bene t of students.” Some of those jobs are high in demand, particularly in Houston, according to data from the Gulf Coast
Houston-area community college leaders are describing a new state law that transforms how their colleges receive funding from Texas as “groundbreaking” and “historic.” House Bill 8 will invest $683 million into the state’s community colleges and incentivize them to help students earn more credits and certi cation in high-demand elds. The bill will also incentivize colleges to help students transfer to four-year universities and provide more funding to them for high schoolers who complete dual- credit courses. It’s a shift away from the old model, which gives colleges money based on enrollment and how often they’re in contact with students. “This is the most groundbreaking legislation I’ve seen,” Alvin Com- munity College President Robert Exley said. The bill, signed into law in June, received majority support, said Renzo Soto, policy adviser at Texas 2036, a nonpartisan public policy think tank. “I have not seen a signi cant edu- cation reform package not only pass, but also move through the process, with this level of uni ed support,” Soto said. The goal is to help train workers to take jobs that require less than a bachelor’s degree but more than a high school diploma, Soto said. The old model HB 8 represents the rst time the funding model for community
Property taxes Tuition
State
100% 80% 60% 40% 20% 0%
1980 1985 1990 1995 2000 2005 2010 2015 2020
Jobs requiring middle skills or certi cation in Gulf Coast region
Number of positions in 2020 Projected additional positions in 2030
47,000 9,000
Heavy-truck drivers Medical assistants Licensed practical & vocational nurses Heating, ventilating, air conditioning & refrigeration installers Preschool teachers
17,000
5,000
13,000
2,000
1,000 8,000 7,000 2,000
SOURCES: GULF COAST WORKFORCE BOARD, TEXAS 2036 COMMUNITY IMPACT
What comes next Typically, laws that overhaul a system to this degree are given years to implement, Zamora said. However, this new funding system will go into e ect in September—right at the start of the fall semester. As a result, colleges and the state are scrambling to set up their budgets, Zamora said. “The speed at which we’ve had to implement this has been challenging,” she said. “But I think everyone is cognizant that this is a great new direction.”
Workforce Board. Statewide, nurses and educators are needed as well. Thanks to a new in ux of money of $683 million paired with the bill, many colleges will receive a revenue boost for the 2023-24 school year to help deal with the transition, said Marshall Heins, chief nancial o cer and senior vice chancellor of nance and administration for Houston Community College. At ACC, the hope is the bill could add about $4 million per biennium to the college’s funds, Exley said.
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BAY AREA EDITION • AUGUST 2023
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