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The House Appropriations Article III Subcommittee met on February 21st to discuss Art. III education agencies. This report covers the following:

  • Texas Higher Education Coordinating Board
  • The University of Texas System

An archive of the hearing can be found here.

This report is intended to give you an overview and highlight the various topics taken up. It is not a verbatim transcript of the discussions but is based upon what was audible or understandable to the observer and the desire to get details out as quickly as possible with few errors or omissions.

 

Opening Comments

  • Will be discussing Higher Education, the LAMAR systems, and the UT systems

 

Texas Higher Education Coordinating Board

Greg Owen, LBB

  • Presentation
  • All funds are $2.3B decrease of $129.8M
  • Item 1, goal A, GR decreases by $1.8M
  • Item 2 increase of $8M
  • Increase of 29M to loan repayment program
  • Mental Health Loan repayment program is $28M an increase of $24.8M
  • Nursing Faculty loan repayment program is $7M increase of $4.1M
  • Peace Officer loan repayment program to $4.1M increase of $1.1M
  • Workforce Related program increase funding for GME expansion program by $34.1M
  • Increase in $27.9M for Professional Nursing Shortage reduction program
  • Texas child mental health care $280.6M increase of $156.2M
  • Baylor College of Medicine increase in $1.3M to graduate college of medicine, $3M decrease to undergraduate college of medicine
  • Increase in $4.2M for salary adjustments
  • Graduate Medical Education Expansion Program increase of $233.1M in all funds
  • Overview of Texas research incentive programs, shows allocations of 8 emerging research institutions based on recommended funding levels $16.6M per year
  • As of November 22,’ unmatched donations were $324.4M
  • Federal Funds from SB 8, $325M for University Construction, $113M for Texas child mental health care, $15M for the True program, $20M for the Crew Program and $1M for Rual Vet Program
  • Exceptional item $153M for State grant funding
  • Exceptional item $15M for funding for Data security modernizations
  • Exceptional item $20M for carrier and college advising
  • Exceptional item $47.5M innovation collaboration
  • Modify rider cost recovery for common application form connect to exceptional item 3

 

Harrison Keller, Commissioner of Texas Higher Education Coordinating Board

  • Next to inflation, gap in education and credentials is the most important drag on TX economy right now
  • Building a talent strong Texas plan to get 60% of all Texans to have higher education certificate
  • Today only 48% of pop has degree or working certificate
  • Don’t just need more credentials, need credentials of value
  • Need to make sure cost of credentials is within reach and that students will not take on large debt
  • Thank you for $2.5B rider to bolster institutional research capacity, especially in non-PUF
  • Thank you for rider to implement preforming Community College Finance
  • $98M in funding for health care workforce programs
  • HB 1 includes rider that provides funding for foundational needs
  • Exceptional item $153M for needs-based student financial aid to maintain enrollment & ensure grant eligibility for certain students
  • Exceptional item $15M to modernize data infrastructure & security
  • Exceptional item $20M to continue support for college & career advising
  • Exceptional item $47.5M to expand availability of high-demand educational workforce programs
  • Gervin-Hawkins- With online learning being more prevalent how is that affecting university?
    • Did not have infrastructure to provide for online learning; what has happened we have accelerated how we use technology for classes
  • Gervin-Hawkins- In terms of space do we need more of it, less of it?
    • We need different kinds of spaces, because the way our campuses have been configured, it was more a traditional mode of delivery
  • Martinez- Are you all recommending money for the comprehensive regional universities?
    • They have made a request for $80M that is part of a larger package to promote affordability, which was a performance-based program created by the legislature
  • Martinez- Last session we used funds, but we haven’t seen any this session
    • There was $20M federal funds last session, they request $80M this biennium to focus on student success efforts
  • Bryant- If our universities did not have to service the bonded indebtedness for on campus housing could it reduce the cost of housing?
    • If they didn’t have to service it, it would be beneficial; I will defer to individual institutions to estimate the impact; It’s a recommendation the systems have put on the table
  • Bryant- We are the fastest growing state, but we have had a decline in enrollment, are there other factors that have caused the decline?
    • That decline in enrollment is for our community colleges; the biggest factor is the job market, when students can make up to $22hr without a higher education they opt not to enroll
  • Tepper- You recommend $2.5B for emerging universities, does that have any revenue growth potential
    • My understanding is that the rider is a onetime investment
  • Tepper- So investment strategy who would be doing the investment?
    • Right now, the investments for the NRUF are held by the safe keeping trust, we are happy to support the state whichever way you want to go on that
  • Thimesch- could you explain the aid for transfer students?
    • Transfer students are not eligible for Texas grants, many students who transfer from community college to university they are no longer eligible for grant; we have requested to continue the $20M aid for students transferring from 2 year to 4-year universities
  • Bryant- What would be the effect on universities if we ban tenure
    • We are trying to recruit top talent to Texas and would recommend putting our universities in the strongest positions; banning it outright would pull the out from our research universities

 

UT System

James B. Milliken, Chancellor of UT System

  • Largest system in Texas with 245K students
  • Largest provider of medical education accounting for 60% of the state’s medical degrees
  • Enrollment is at the largest it’s ever been
  • Thankful that HB 1 maintains rate for higher education formula
  • Have not raised tuition in the last 2 years, continue to be in the bottom half of universities nationally
  • Asking for Increase in formulas recommend by coordinating board
  • Asking for funding for the legacy portion of hazelwood
  • Restore higher education group insurance funding
  • Asking for continued support for comprehensive regional universities that were established last session
  • Institutes research expenditures total $3.8B and federal expenditures are the largest in the state and second in the nation
  • Thankful for support in child mental health and TCHAT
  • Vandiver- Will the four items you listed keep tuition flat
    • Absolutely for 2 more years at least for Texas residents

 

UT Austin

Jay Hartzel, President of UT Austin

  • Flagship university in Texas
  • This fall admitted over 9100 first time freshman
  • 4-year graduation rate is 73% 6 year is 90%
  • Exceptional item Texas Institute for Electronics (TIE), CHIPS act is a big opportunity for UT, without state support UT would be unable to provided world class research
  • Gervin-Hawkins- Are your request order by priority?
    • Yes, I would say so, the thing that is atypical is the opportunity of the CHIPS act
  • Thimesch- How much of you freshman class was from Texas?
    • 90%

 

Public Testimony

Tracy Shannon, Mass Resistance Texas

  • Against funding for higher education universities if they are providing gender modification procedures
  • Committee should probe about DEI initiatives at schools

 

Renzo Soto, Texas 2036

  • In support of Higher Education Coordinating Board exceptional item 2 and 4
  • Improved higher education data will help advance sates workforce goal