Texas Association of Community Colleges Policy Update Overview
This update highlights key components of House Bill 8 focusing on financial aid for Swift Transfer, shared services, performance tier, base tier, and the Community College Standing Advisory Committee. It also discusses the state's investment in community colleges, the HB 8 funding model, and the transition from a contact hours-based funding model to one based on dynamic outcomes. The Performance Tier emphasizes outcomes such as credentials of value and supports economically disadvantaged, academically disadvantaged, and adult learners.
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Texas Association of Community Colleges Policy Update Elizabeth Chivers, Senior Director, Strategy & Policy Analysis Jacob Cottingham, Senior Director, Government Relations
Key Components of House Bill 8 Financial Aid for Swift Transfer (FAST) A new financial aid program that would allow educationally disadvantaged students to enroll in dual credit classes at no cost to them. Shared Services Encourages public junior colleges to participate in institutional collaborations that help students afford college, complete credentials, and transfer. HB 8 Performance Tier The funding level that constitutes the majority of state funding and is comprised of measurable outcomes. Base Tier The funding level that ensures each public junior college has access to a defined level of funding for instruction and operations. Community College Standing Advisory Committee (SAC) A group of community college leaders that will provide advice and counsel to the Texas Higher Education Coordinating Board during implementation. tacc.org
State Investment in Community Colleges Source: Fiscal Size Up, Legislative Budget Board
HB 8 Funding Model Legacy Funding Model Performance Tier Success Points Core Operations Base Tier Contact Hours Historic opportunity transition from a funding model primarily based on contact hours to one primarily based on dynamic outcomes.
Base Tier Funding Basic allotment based on weighted FTSE Equitable adjustment for < 5,000 FTSE Local share based on $0.05 M & O tax rate and estimated tuition & fees revenues Base Tier applies if estimated costs outweigh estimated local share Contact hour weighted by discipline to reflect cost of providing applicable courses tacc.org
Performance Tier Outcomes Credentials of value, including credentials from credit and non-credit programs Credentials of value awarded in high-demand fields Students who transfer with at least 15 SCH to four- year universities Students who complete a sequence of at least 15 SCH in dual credit courses Weights Economically disadvantaged Academically disadvantaged Adult learners (25 years of age or older) Performance Tier Funding tacc.org
Texas Higher Education Coordinating Board: House Bill 8 Website TOPIC BREAKDOWN LANDING PAGE tacc.org
May - July The first set of rules implemented by THECB will be emergency rules. These rules will only be in place for a six-month period. RULEMAKING August The first draft was completed July 14, 2023, for an August approval. Special called THECB Board Meeting to adopt emergency rules. No public comment period. APPROVED: Emergency rules in place until January 2024. Sept. 1st House Bill 8 went into effect. January '24 THECB adopts FY 24 regular rules. Regular rules in place through end of 2023- 2024 academic year. April '24 THECB adopts FY 25 regular rules. Rulemaking Timeline for House Bill 8 tacc.org
HB 8 Rulemaking Updates August 22, 2023, the Texas Higher Education Coordinating Board approved emergency rules enabling the implementation of the new funding system beginning September 1, 2023 Fiscal Year 2024 Final Formula Runs & Three-Pay Schedule finalized October 13, 2023, initial set of FY 2024 regular rules posted for public comment including repeal of existing rules for the Community and Technical College Formula Advisory Committee establishing the HB 8 Standing Advisory Committee responsibilities Financial Aid for Swift Transfer (FAST) rules Certification of compliance & overallocation for the new finance model rules regarding excess hours THECB will continue to release rules in the Texas Register related to implementation of the new funding model between now and December tacc.org
HB 8 Implementation Requires Partnership TECHNICAL ASSISTANCE RULEMAKING Texas Community Colleges TACC COMMUNICATION CAPACITY BUILDING TSC THECB Philanthropy PLANNING & SUSTAINABILITY DATA & REPORTING Business & Industry tacc.org
HB 8 Implementation Activities Implementation Strategies Planned Activities National Amplification for House Bill 8 Community College Finance Landing Page Roundtable Discussions with Community College Leaders, Business & Industry Leaders, and K-12 Stakeholders Community College Finance Data Toolkit for all Colleges Educational Collateral for Key Topics: New funding formulas Base & Performance Tier New dual credit program FAST New Community College Standing Advisory Committee Institutional Collaboration College Workshops focused in understanding the breadth of continuing education credentials. Areas of Interest: CAPACITY BUILDING TECHNICAL ASSISTANCE COMMUNICATION PLANNING & SUSTAINABILITY DATA & REPORTING tacc.org
August 22, 2023, the Texas Higher Education Coordinating Board approved rules to establish College Connect Courses. This allows colleges to offer dual credit courses with planned supports for student who are not college-ready or their college ready status is unknown. o Planned supports must be incorporated into MOUs between colleges and high schools. Rulemaking Impacting Texas Colleges October 13, 2023, rules posted for public comment including authority, student eligibility , and allocation of funds to administer the Texas Transfer Grant Program accreditation rules that mimic federal law allowing choice among 7 recognized accrediting bodies, including the current regional accreditor for Texas higher education institutions, SACSCOC.
TEOG Rulemaking Updates TEOG: Texas Education Opportunity Grants October 13, 2023, the Texas Higher Education Coordinating Board approved rules updating TEOG. Includes certificate programs Uses semester equivalent Increases total grant amount Average of all students tuition, not just in-district
STATE UPDATE Legislative Updates Third Special Session FEDERAL UPDATE Gainful Employment Rule
Other Legislative Updates Parenting Students Bills SB 412 Paxton: Requires all Institutions of Higher Education (IHE) to make certain accommodations to pregnant and parenting students. SB 459 Paxton: Requires IHEs to provide in the same manner early registration for parenting or pregnant students if they provide early registration for other groups of students. HB 1361 Morales Shaw: Designate one employee to be a liaison officer for students that are the parent or guardian of a child. The support provided must include resources to access health coverage, public benefit programs, parenting resources and more. Each year, the institution must provide to the Texas Higher Education Coordinating Board a report on the data and demographics of these students. tacc.org
TRUE Grants Other Updates Due Friday, Oct. 30 Can submit as single applicant and as a consortia $12.5M awarded this round, 12 months in length Up to $250k for single applicant Up to $500k for consortia Accreditation Rule THECB posted in register Reflects Federal guidelines
Nueces County Property Tax Issue Unintended Consequences Very high value properties >$1 billion Dramatic increase in appraised value from Chief Appraiser Several billion-dollar increase Truth in Taxation limits shifted for other property taxpayers Lengthy, contested appraisal Much lower final valuation Reduced revenue from other sources Del Mar District = $5 million
Thank you For further information, please visit: Texas Association of Community Colleges https://tacc.org/ Elizabeth Chivers echivers@tacc.org Jacob Cottingham jcottingham@tacc.org
