Texas might radically change community college funding? Alamo Colleges win either way

Educators in Texas preparing for the upcoming legislative session very much include community college executives like Alamo Colleges District Chancellor Mike Flores, eyeing a proposal that could sharply change their state funding. He testified last month before the Texas Commission on Community College Finance, which is finalizing a set of recommendations for an “outcome-based” funding system based on student graduation and transfer rates. Historically, Texas community colleges have been funded by tuition and fees, local property taxes, and an allocation from the state based on a formula that accounts for student contact hours and success points.

It’s a method that has benefited the Alamo Colleges because of San Antonio’s growing population and increasing property values. But Flores says an outcome-based formula would also benefit the district because of its decade-long push to improve student tracks to graduation, certificates, or transfers to four-year universities. The Legislature created the commission, a panel of college presidents, lawmakers, and business leaders, in 2021 to study how the state’s funding should be overhauled. A final draft is set for a vote Tuesday that would send it to the Legislature for possible action in the session that begins in January. Any changes that result will accompany the next two-year state budget and the colleges could begin feeling the effects by 2024. On the same day Flores addressed the panel, Harrison Keller, the Texas commissioner of higher education, briefed its members on a survey that found Texans value their community colleges, but are worried about access and affordability. The commission’s recommendations include more funding for Texas Education Opportunity Grants, financial aid for dual enrollment credit based on need and increased access to paid work-based learning opportunities. Another goal is to invest in community college “capacity,” using seed grants to develop new programs in high-demand fields, making it easier to share services, and to update state policies to help them offer high-quality non-credit programs.