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The House Committee on Appropriations S/C Article III met on February 23 to discuss Article III items. This report covers discussions on the Higher Education Fund, Group Insurance, TSTC, UNT, and financing for community colleges. 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.

 

Higher Education Fund, Available University Fund (AUF), National Research University Fund (NRUF), and Permanent Fund Supporting Military Veterans Exemptions (MVE)

Casey Floren, Legislative Budget Board

  • Presentation
  • All funds total $3.9B
  • AUF estimated to increase by $393.7M from previous biennium
  • Of that $3B appropriated $2B is allocated to UT system, $979M to A&M system
  • Higher Education Fund maintain $393.8M in GR
  • Current allocation period ends in 2025
  • Estimated MVE distributions total $19.8M which is a growth
  • Hazelwood reimbursements recommendation to restore annual form $14.25M to $15M
  • NRUF has appropriations estimated to be $57.7M
  • NRUF allocations may continue to decrease as more institutions become eligible
  • Recommend modification to AUF Rider 3 UT system share
  • Several systems request $276M to fully reimburse institutions for Hazelwood legacy program
  • VanDeaver- Can you give us an explanation on AUF rider 3?
    • It was modified to include the language of support and maintenance, which aligns with the exact language of the constitution

 

Higher Education Group Insurance (HEGI)

Andrew Overmyer, LBB

  • Presentation
  • Recommendations total $1.4B Increase of $6.1M
  • State Contributes to community colleges account for full increase in funding due to increase in enrollment
  • Recommendation of $6.1M increase to community colleges 1.6% increase
  • HEGI head count increased but only in part time employees

 

Public Community and Junior Colleges

Andrew Overmyer, LBB

  • Presentation
  • Recommend $1.9B in GR an increase of $700K
  • Recommendations maintain formula funding
  • Formula appropriations are based on 2017-2019 this will be the first time COVID impacts
  • Recommend $650M contingent on passage of legislation on community college finance
  • Contingency funding has 3 categories
    • State funding for outcomes
    • Affordability for student
    • Investments in college capacity
  • Contingency funding includes $428M
  • Commission recommends formula funding be distributed on outcome-based model
  • Commission recommends setting funding amount fixed across biennium
    • Estimates formula would require $300M of the $428M
  • Formula would also provide additional funding to institutions unable to generate foundational levels of funding through property tax revenues
    • Estimates would require $128M
  • Recommendations maintain rider that provides supplemental funding to institutions with the greatest financial need
  • Gervin-Hawkins- are these entitlement grants or competitive?
    • These are competitive there is no guarantee who would receive the money, the coordinating board decides who receives the grants.
  • Gervin-Hawkins- Is there a timeline?
    • It is still being worked out by the coordinating board
  • Bryant- It seems like a small increase in funding based off our state’s population growth, am I reading that right?
    • This is what we are recommending in the introduced bill, the financing commission includes 428M if that is passed. To speak on population growth the contact hours decreased, and this is more beneficial to colleges
  • Bryant- When putting together recommendation what policy objective is guiding you?
    • We leave that up to the legislature, we mostly chose whether to maintain GR
  • VanDeaver- You said there would be $428M additional?
    • The $428M is just formula funding to the community colleges everything else goes to through coordinating board

 

Raymond Martinez, President of Texas Association of Community Colleges (TACC)

Brenda Kays, Vice President of TACC

  • Described the benefits community colleges provide for the state
  • Majority of jobs in the state require less than a bachelor’s degree but more than a high school diploma
  • Submitted request for legislature to change formula funding based on performance
  • In full support of the request submitted to the legislature
  • Contingency rider Article 3, Sec 62, adds for additional $650M for community college districts
  • Moving from the current model based on contact hours to be based on outcomes will be beneficial
  • Since 2011 the number of certificate and degrees from community colleges has increase by 61%
  • Every community college in Texas fully endorses the recommendation
  • Gervin-Hawkins- Would there be an impact if we did better course alignment?
    • Yes mam, the stronger the alignment the easier it is to get to our work goal
  • Ortega- Could you explain the outcome-based formula?
    • The vast majority of $ would be based not how many come in the door but how are we helping them. There are different metrics for each outcome like students that receive dual credit in high school
  • Ortega- How many community colleges are we talking about?
    • We have 48 that are in TACC, and we have 2 that are not but all 50 are untied
    • Martinez- If we move to this new formula it’s based on workforce, credentials of value, transfer, dual credit. The rider for HB 1 would help promote
  • Thimesch – If a student goes to a 4-year college would you get credit for that?
    • Yes, that’s correct
  • Thimesch- What if a student goes out of state, I’ve heard there is a breakdown there?
    • We are aware there is a gap that you pointed out, we are working with our federal data so we can keep up with that. We can get back to you as we continue to get a solution for that.
  • Gervin-Hawkins- one thing that came to mind for outcome, what about the student who is a computer or short-term student?
    • This equation puts emphasis on. We also produce in micro credentials; they allow students to take credentials and use them for heir next step
  • Gervin-Hawkins- What happens to a student that takes one class in the summer, that’s not an outcome?
    • That is a transient student, it would count toward our overall enrolment for the institution but not towards our credentials
  • Gervin-Hawkins- How can we make it, so our community colleges aren’t penalized because they take on a lot of transient students?
    • If a student came to us and received 6hrs of credit over the summer, what could happen is that it could help them achieve their degree toward their institution, the number of hours that transfer have not been determined yet. If a student right now transfers, it would be counted as a metric for hours do not transfer
  • Bryant- Why was there a decline in enrollment?
    • That is a good question, we are looking into that ourselves. The pandemic played a roll, and hopefully as we get further along from the pandemic we will get back to regular numbers
    • Martinez- A lot of our students are working adults and have children. Those type of real day issues affect us significantly. During the pandemic we lost about 90K students, we are working very hard to make sure we can reengage with them. We lost 11.6% of our student population but the national average was 38%. We are excited that under this new formula we will see an uptick in student enrollment

 

Texas State Technical College System (TSTC)

Mike Reeser, Chancellor of TSTC

  • Explains TSTC compared to community colleges and the purpose of technical colleges
  • Outcomes based funding formula pays TSTC when a student is put to work in the Texas economy
  • The more the student makes for the Texas economy in their first 5 years in the work force the larger the funding we receive
  • Request that activity is included in funding formula
  • With the funding formula the more a student receives over minimum wage the more funding we receive
  • No questions

 

University of North Texas System

Michael Williams, Chancellor of University of North Texas System

  • Explained the different campuses and programs and degrees UNT system offers
  • Highlighted each of UNTs campuses individual achievements
  • Thankful for support of higher education and formula funding
  • Asking for additional formula funding to address inflation and cost increases
  • Asking for additional funding to address hazelwood legacy portion
  • Asking for higher education group insurance
  • No questions

 

Neal Smatresk, President of UNT

  • Spoke on the achievements UNT has as emerging research institution
  • Thankful for formula funding and research contingency rider
  • Asking for additional formula funding support for inflation and staff shortage
  • Asking for flagship equity funding to expanded high impact programs
  • Asking for funding for Center for Integrated Intelligent Mobility System (CIIMS)
  • VanDeaver- how long have y’all have tier 1 status?
    • Since 2015
  • Bryant- what is the history of fallen so far behind in falling behind in per-student expenditures?
    • It’s a complicated issue, North Texas’ population has grown so fast that is a contributing factor

 

Bob Mong, President of UNT Dallas

  • Presented the diversity and achievements of the school
  • Thankful for support to foster upward economic mobility
  • Asking for $10M classroom to carrier proposal that will help increase student workforce readiness
  • Asking for $1.5M to support health services program

 

Sylvia Trent-Adams, President of UNT Health Science Center

  • Presented the on the different achievements of the university
  • Thankful for the formula funding
  • Asking for additional formula funding
  • Asking for support with health care and workforce readiness initiative
  • Asking for support with additional health and therapeutics initiative

Special Provisions Relating Only to State Agencies of Higher Education and Special Provisions Relating Only to Components of Texas State Technical College

Jordan Smith, LBB

  • Presentation
  • Modified and deleted riders
  • New contingency rider for community college finance legislation
  • New contingency rider for higher education endowment funding
  • New contingency rider for higher education affordability internet

 

Public Testimony

David Albert, Austin Community College

  • Community college employees are severely underpaid
  • Asking for increase for community college employees
  • Tepper- Is the housing cost a major factor of the situation of the employees you represent?
    • Even before this community college employees could barely get by
  • Tepper- Is it the rates, or the amount of hours?
    • All the above, it’s the pay formulas. The money isn’t going to the employees its going to the system
  • VanDeaver- I assume you all have adjunct openings, correct?
    • Yes, we have a lot of openings, because we have lots of turnover
  • Gervin-Hawkins- A full time adjunct prof salary would be what?
    • It will vary but it would be between $3K-4.5K

 

Renzo Soto, Texas 2036

  • In support of workforce benefits improvements for community colleges
  • In support of funding formula changes

 

Kelle Kieschnick, Commit Partnership

  • Fully support recommendations of the Community College Commission

 

Billy Don Curbo, Hill College

John Versluis, Hill College

  • Speaking on special items for Texas heritage museum
  • Asking for $186K in LAR for museum appropriations
  • Asking for $35K to fund new additional education program for the museum