Texas House OKs bill that would fund community colleges based on their performance

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Texas House OKs bill that would fund community colleges based on their performance
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A bill that would dramatically change how Texas' community colleges are funded just got its first major stamp of approval in the House. It would base funding on the number of students who earn certificates or degrees or transfer to four-year universities.

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So far, state lawmakers have signaled during this legislative session that they’re willing to provide funding to support these ideas. That amount would include more money for the state community college program known as the Texas Educational Opportunity Grant Program. Right now, the state provides funding to cover only 28% of the students who qualify for the grant. The new budget proposal would raise that number to 70%.

, R-Galveston, told Texas Higher Education Commissioner Harrison Keller at a Senate subcommittee on higher education last month as they took testimony on the Senate’s version of the bill. “I mean, knock on wood,” he said as he glanced at Sen.

While every college receives a little over $1.3 million for core operations from the state in each two-year budget, the rest of the money is allocated in two ways. The vast majority of that funding depends on how many hours of instruction students receive, called contact hours. The rest — around 10% — is awarded based on milestones like the number of students who complete their first year of math, earn 15 credit hours or graduate with an associate’s degree.

Mike Simon, president of Angelina College in rural East Texas, said smaller schools in areas with shrinking populations suffered. Specifically, the legislation says the state would allocate funding to colleges based on metrics like the number of credentials they award in high-demand industries, the number of students who earn 15 credit hours and then transfer to a four-year university, or the number of high school students who earn at least 15 credits through a dual-credit program.

The schools would also get a base amount of funding depending on the number of full-time students they have. But the law includes additional ways schools could receive extra funding through formula weights that would provide extra money for students who might be more expensive to educate, including economically disadvantaged students, academically underprepared students or students over 25 years old who have been out of school for a while.

In addition to changing how Texas calculates how much money each school should receive, the state is investing a significant amount of new funds into the community college system as they overhaul it. Keller said it’s not just about pumping new funds into the schools, arguing if the Legislature had just given them money without changing the current system, it would’ve disproportionately benefited larger schools where enrollment is already growing quickly.

Another unknown involves data. Historically, Texas community colleges have not been required to keep data on the nonacademic side of their work, including how many students are earning these credentials in areas like truck driving or information technology programs.

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