In 2023, Texas community colleges experienced a significant transformation due to a long-awaited legislative investment aimed at connecting students with the workforce. The Texas Legislature revamped the funding mechanism for these institutions through House Bill 8. Previously, funding was allocated based on student enrollment numbers, but the new formula ties financial support to outcomes such as degree and certificate completions, successful transfers to four-year universities, and high school students participating in dual credit courses.
This shift is driven by a goal to better equip young Texans for the job market. With projections indicating that by 2030 at least 60% of jobs in Texas will require postsecondary credentials, yet currently, less than 40% of students attain such qualifications within six years post-high school. Postsecondary credentials are crucial for students as they often lead to higher wages and greater economic and social opportunities.
In a nearly unanimous decision, Texas lawmakers granted $683 million to two-year institutions. This financial boost, which colleges began receiving in fiscal year 2024, saw institutions receiving between $70,000 to $2.9 million, depending on their size. Over a year later, these community colleges are leveraging these resources to eliminate the barriers that hinder student completion. The efforts have taken various forms, such as introducing free tuition benefits and enhancing student advisory services, fundamentally changing the operation of these schools.
Ray Martinez III, president of the Texas Association of Community Colleges, emphasized the importance of HB 8, stating, “HB 8 was fundamentally an effort by the Legislature to ensure educational outcomes align with business and industry needs,” highlighting the initiative’s significance and its positive outcomes thus far.
This session, lawmakers are further refining funding incentives. Rep. Gary VanDeaver, R-New Boston, is championing a bill to extend financial incentives to community colleges for student transfers to private schools, in addition to public universities. His bill also seeks to redefine what constitutes a “credential of value” using more precise labor market data.
Community colleges have seen several transformations due to the new funding model, beginning with increased enrollment through dual credit programs. The COVID-19 pandemic had initially led to a significant drop in community college enrollments, but things have started to change. Many colleges are now engaging high school students early, offering dual credit courses with the aid of the Financial Aid for Swift Transfer program (FAST). This initiative provides funding to colleges that enable low-income high school students to take these courses at no cost, resulting in a notable increase in dual credit participation.
For instance, Kilgore College in East Texas reported a 36.5% rise in dual credit enrollment, with high school students now forming a majority of its student body. Most colleges have opted into the FAST program, receiving around $80 million in additional funding last academic year. Consequently, colleges are adapting to this changing student demographic, with some faculty members spending more time in high schools.
A couple of Texas colleges, like Austin Community College (ACC) and Del Mar College, have launched initiatives offering free tuition for local high school graduates. These programs provide an essential opportunity for students, especially with recent glitches in federal financial aid applications. ACC’s Chancellor, Russell Lowery-Hart, noted the significance of this initiative, emphasizing that using terms like “free” instead of “discount” impacts perceptions of college affordability. Both colleges are executing “first dollar” programs, covering tuition costs before federal and state aid, allowing students to use their financial aid for other essential needs.
Meanwhile, Laredo College has multiplied its advising resources by hiring peer advisers, almost quadrupling its advising staff. These peer advisers, fellow students, help their classmates navigate college life, from class registration to staying on track for graduation. This approach aims to support the many first-generation college students who may lack guidance at home. Their efforts have led to a noticeable increase in full-time enrollments, demonstrating the effectiveness of enhanced student advising systems.
Furthermore, community colleges have strengthened their workforce training programs, often in collaboration with local employers. Grayson College, for example, introduced electronics and automation certifications in response to the growing semiconductor manufacturing industry around Sherman, spurred by large investments from companies like Texas Instruments. The funding from HB 8 has been instrumental in these expansions, which are vital for preparing students for in-demand jobs.
In North Texas, Dallas College has prioritized easing credit transfers for its students by collaborating with area universities. This effort aims to ensure that credits earned are recognized when students transfer to local universities. An online portal helps students track their credits and progress, reducing the incidence of wasted efforts on courses that ultimately don’t count toward their degrees. This initiative seeks to improve the transfer rate and degree completion among community college students, addressing a common hurdle in the education journey.