Tuesday, January 31, 2023

From Inside Higher Ed: A Step Toward Outcomes-Based Funding for Texas 2-Year Colleges

Texas may change how it finances its share of community college education.

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State funding for Texas community colleges, long distributed based mostly on student credit hours, would reward institutions for helping students transfer, graduate and move into high-demand fields under a new model proposed by a state commission. The recommendations, in a report released Thursday by the Texas Higher Education Coordinating Board, would, if approved by state legislators, create a much more outcomes-focused approach that is expected to result in more funding, especially for small and rural community colleges.

The proposal has widespread support among community college leaders who believe the move would markedly increase state allocations and aid dollars to their institutions and help them build capacity to meet the workforce training needs of the state’s growing population.

“Our Commission believes the new funding model must do three things: reward colleges for positive outcomes, especially in credential completion and transfer, ensure equitable access through financial aid, and help community colleges increase capacity to meet rapidly changing workforce needs,” Woody Hunt, chairman of the Texas Commission on Community College Finance, wrote in the report. The commission, made up of lawmakers, community college leaders, business executives and policy experts, was tasked last year by the Texas Legislature to suggest a new funding system.

Texas Commissionon CommunityCollege Finance