Texas Association of Community Colleges Overview of Funding Priorities and Funding Justification Template for the 86th Legislative Session JUNE 2018

Formula Funding Request Dual Credit Workforce Education Funding Ask Template Summary

Student Success Points College Readiness First College Level Course Progress to Credential Credentials Awarded Transfer to 4-year University In addition to achievement  outcomes such as graduation and transfer to a four-year institution, Success Points measure student progression including completion of developmental education, completion of the first college-level course, progress to a credential, completion of the student’s first term, and completion of the first year of college. The Legislature established Success Points in 2013 as the performance-based funding system for community colleges. The Success Points funding model uses weighted point calculations to award funding to the community colleges for their individual success in meeting specific metrics, and is intended to reward colleges for demonstrating improved student success in critical areas of importance. Unfortunately, what has happened is that success points have been increasing but the funding has not been keeping pace with the improved performance.  

Success Points Since performance-based funding began in 2014-2015, total success points generated annually by community colleges have increased by 16%. However, the funding rate for success points has declined by 7% during this time. In order for performance-based funding to work as an incentive, funding must be aligned with the improved performance. This funding recommendation, which came from the deliberations and analysis done by the community and technical colleges formula advisory committee last fall, would increase the rate to $215 for success points. The rate began in 2013-2014 at $185 per point and since then has dropped down to $172 (or actually to $171.56) for the current biennium. Bringing up the rate to $215 would require an additional investment from the legislature of $61 million. Overall, including the increase for projected growth in enrollment, the total recommended increases amount to additional funding of $144.8 million for the biennium. This methodology is aligned with what the Higher Education Coordinating Board is recommending as well.

Funding Ask: Invest in Community Colleges Texas community colleges seek an overall 8% increase in formula funding for FY 2020-2021. The request will support projected growth in contact hours and growth in student success points. The request will also align the funding rate with the growth experienced in success points since performance-based funding was implemented for the community colleges. Funding for Core Operations is requested to be maintained at $1.36 million per college district.

Dual Credit Enrollment In 2010, community colleges represented 92.5% of dual credit enrollment. This share has dropped slightly, but the community colleges still have 91.2% of dual credit students. Since 2010, dual credit enrollment has increased 65% at community colleges.

Dual Credit: Broaden Access and Sustain Quality Establish a statewide goal By 2030, no less than 30% of high school graduates will have earned at least 12 SCH in dual credit. Establish a taskforce of key stakeholders Study equitable access to quality dual credit programs across the state. Evaluate the role of dual credit in meeting the goals of 60x30TX. Broaden access to dual credit Expand eligibility for TEOG to high school students for up to 12 SCH in core academic subjects, or in CTE courses leading to certifications. Dual Credit: Broaden Access and Sustain Quality Community colleges support dual credit as a means to earn college credit while still in high school and as a critical component of meeting the goals outlined in 60x30TX, which is the state’s higher education strategic plan. The overarching goal of 60x30TX is that by 2030, 60% of Texans between the ages of 25-34 will have earned a certificate or degree. The goal focuses on this age group as an indicator of the economic future of the state and our ability to remain globally competitive. The next priority is to establish a taskforce that would include key agencies focused on education and workforce development, including the Higher Education Coordinating Board, Texas Education Agency, TWC, and stakeholders from K-12 and higher education to evaluate equitable access to dual credit programs statewide. The third goal is to expand eligibility for the Texas Educational Opportunity Grant (TEOG) to dual credit students. TEOG, as you all know, is the state grant awarded to students enrolled in two-year colleges who demonstrate financial need. Let’s move forward to the third policy priority adopted by TACC.

Workforce Education: The Critical Role of Community Colleges In 2015, 92% of all Technical Certificates and Associate degrees were awarded by community colleges. To provide continued support for workforce education, TACC recommends sustained funding for two programs administered by TWC, as well as increased formula funding for community colleges to broaden the reach of CTE and CE. The Jobs and Education for Texans (JET) grants allocates funding to defray start-up costs associated with the development of career and technical education programs. The Skills Development Fund promotes and supports partnerships between local business and two-year colleges to develop customized workforce training programs and support curriculum development. JET is $10 million/year SDF is $26 million/year To provide continued support for workforce education, TACC recommends sustained funding for two programs administered by the Texas Workforce Commission, the Jobs and Education for Texas , as well as increased formula funding for community colleges to broaden the reach of Career and Technical Education and Continuing Education.

Summary of Legislative Priorities Increased formula funding to support academic, career, technical, and continuing education Increased funding for Success Points to recognize the performance-driven focus of Texas community colleges Broaden access and sustain quality in Dual Credit programs Maintain funding for JET and SDF in order to recognize and support the role community colleges play in workforce education. Summary of Legislative Priorities

Funding Justification Template For the FY 2020-2021 Formula Funding Request

Funding Justification Template

Suggestions for Funding Ask Template Please contact: Mirna Gonzalez, Director of Policy Analysis mgonzalez@tacc.org 512-476-2572 ext. 204