With the passage of House Bill 8 in 2023, Texas is transforming the way it funds community colleges. Texas is moving away from a static system tied primarily to students’ time in class to a modern and dynamic outcomes-based formula that reflects the needs of our world-class economy. For the first time, we will support community colleges based on specific goals aligned with our state’s higher education strategic plan, Building a Talent Strong Texas, as well as regional and state workforce needs.
The outcomes driving this new model include:
- high school students who complete 15 semester credit hours in dual credit or dual enrollment courses at a community college;
- students who transfer successfully to public four-year universities after completing 15 semester credit hours at a community college or complete 15 semester credit hours in a structured co-enrollment program;
- and community college students who earn credentials of value, which offer purpose in the economy, value in the labor market, and opportunities for good jobs and meaningful careers.
Significantly, these outcomes will also be weighted to recognize the higher costs of educating students from economically and academically disadvantaged backgrounds and adult learners. Beginning in FY 25, colleges also qualify for funding bonuses when they deliver credentials of value at a low–enough cost that graduates can expect to achieve a positive return on investment more quickly than the average recipient of the same credential statewide.
The new Texas community college finance system rewards colleges for their progress toward our state’s higher educational goals while also ensuring colleges have access to the resources needed to support their mission to educate and train the workforce of the future.