The way community colleges are funded may be revamped to make student success outcomes play a bigger part in determining fund allocation, according to a draft released at the Sept. 12 commission meeting for the Texas Commission on Community College Finance. 

Currently, community college funding is proportionally allocated between colleges based on their individual enrollment or seat time. With the new proposal, however, an outcomes-based funding model would determine how much funding each college receives. The draft will go into effect Sept. 1, 2023 if approved by the Texas State Legislature, said Woody Hunt, chairman of the Texas Commission on Community College Finance.

“What this proposal (does) is fix the fixed-dollar amount attached to these outcomes that would also grow over time so that the colleges get paid for hitting certain outcomes,” said Jacob Cottingham, senior government relations director at the Texas Association of Community Colleges. “You get away from dividing the same piece of pie, into awarding colleges funding that can go up or down depending upon if they hit those metrics.”

Texas ranks relatively low compared to other states in post-secondary attainment in the workforce, Hunt said. The new proposal is meant to address this issue by creating a program that encourages Texas community colleges to pursue higher success rates.

“It’s a pivot to more focus on workforce-type skills, and to try to incentivize those outcomes,” Hunt said. “The world and the complexity of jobs in the world are changing, and jobs that are more complex require more training.”

The draft recommendation also benefits individuals from rural areas or marginalized communities. It emphasizes state-funded student financial aid and includes new target financial aid for low-income students to help them enroll in dual credit while in high school, Cottingham said.

“Especially for colleges that are in small, rural communities, the recommendations would provide access to far more equitable funding than is available to colleges today,” said Harrison Keller, commissioner of higher education for the Texas Higher Education Coordinating Board.

In addition to the impact on community colleges, Keller said this change will ripple through the state and be pertinent to all Texan students, including students who enter public universities like UT with community college credits and transfer students.

“A lot of people don’t appreciate the impact of community colleges on students throughout the state,” Keller said. “These recommendations are going to be important for all students across the state, including students at the University of Texas.”