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House Higher Education met on April 15 to take up a number of bills. This report focuses on HB 3003 (Parker et al), HB 1530 (Murphy), HB 3351 (Pacheco et al), HB 4361 (Raney), and HB 4403 (Turner, John).

 

This report is intended to give you an overview and highlight of the discussions on the various topics the committee took up. It is not a verbatim transcript of the hearing 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.

 

Vote Outs

 

HB 1530 (Murphy) Relating to authorizing the issuance of revenue bonds to fund capital projects at certain public institutions of higher education

  • One of our big lifts as a state, will be bringing a substitute
  • Generally state carries debt
  • Able to finance additional facilities for universities if we choose; part of the question is how much we should propose
  • Going beyond LARs and doing research to understand mission aspect of facilities that are proposed
  • Would like committee to propose specific facilities to work with
  • Disinclined to fund people at percentages of what they are asking; some schools have puff funds and others have ability to raise additional money

 

Greg Owens, Legislative Budget Board – On

  • Presentation covering definition of revenue bonds, legislative role, and issuance of bonds (provides printed handout)
  • Governing board may issue bonds or notes; Typically, not expiration date on authorization
  • Outlines the General Proportion Act’s effect on this bill
  • TBFA funds specific universities, some have the option to use them, others oversee their own bonds
  • Murphy – You have had this information since November, going beyond LARS?
    • Latest info, schools are asking for around 5 million dollars
  • Murphy – helpful to understand the scale and scope of this. Debt service level is lower relative the amount of assets we’ve seen in the past?
    • Historically schools have been at a 6% over 20 years, its now even lower than 5%
  • Murphy – 2015 was the last time we did something significant for higher education facilities. Even if we passed something today it would take quite some time to get it in action.

 

Emily Cormier, Assistant Commissioner Texas Higher Education Board – on

  • Space Projection Model predicts funding by square feet; Used as tool in funding allocations
  • One formula for state colleges and one for medical institutions
  • Takes into account teaching space, research space, office space, library space and categorize either space surplus or space deficit
  • Pacheco – can you speak to relative demand and how that has changed in 6 years?
    • Deficit did decline from 2016-2017, gap went from 18.6 million to 18.2, now have seen it steadily rise
  • Pacheco – you do this for all of our public systems?
    • Yes
  • Pacheco – most universities are at a significant deficit, is that correct?
    • Yes
  • Murphy – Do not want anyone to be overly concerned over negative numbers, sometimes there are sub needs that you can help with is that correct?
    • We can do some things yes
  • Pacheco – Is part of the deficit challenge a turn to remote learning?
    • Not briefed on that

 

Closing, Murphy

  • Will really be delving into this matter in coming days

HB 1530 left pending

 

HB 3003 (Parker et al.) Relating to the establishment of the Texas Reskilling and Upskilling through Education (TRUE) Initiative to support workforce education at public junior colleges

  • Committee Substitute (Turner)
  • TRUE designed to put Texans back to work in high demand occupations
  • Community colleges instrumental and successful went partnered with local workforce to identify needs
  • TRUE establishes competitive grant program for junior/community colleges to provide training or existing redesigned programs that prepare students to enter certain high-demand fields
  • Some training can be completed in 6 months or less
  • Workforce issues have existed for years, pandemic only worsened

 

Brent Wallace, Chancellor of North Central Texas College – On

  • Provided printed slides for greater detail
  • TRUE initiative supports existing programs and the creation of new ones
  • Goal is to get Texas through school and into a workforce position
  • Seeks to support competitive grants for regional colleges
  • Have already used data to inform programs and identify high-demand positions

 

Massey Villarreal, Business Advisory Board TX Association of Community Colleges – For

  • Resources coming out of community colleges are needed
  • Abbott just awarded Governor’s cup; criteria is job creation and capital investment, need to continue that
  • Need to upscale the workforce; infrastructure work is coming to Texas, need a skilled workforce
  • 60% of Jobs lost in March were made up in Houston, but half a million Texans are still unemployed from pandemic
  • TRUE will be an important tool to
  • Pacheco – Are these industrial jobs, welding, building?
    • As well as cardiology, EMT, and other fields
  • Pacheco – I am in that industry, and I see the need. Having difficult time hiring people right now.

 

Patrick Brophey, Head of Stakeholders Relations North Texas Commission – For

  • Economic recovery and growth begin with education; millions applied for unemployment
  • Accelerated learning opportunities for students will help to fill the workforce gap
  • Grant program will allow students to be served at an increased capacity on an accelerated timeline
  • Benefits community colleges, individual Texans, and the public workforce

 

Closing – Parker

  • Want to ensure that Texas continues to lead at the highest levels
  • Murphy – by partnering with businesses do not you think there will be greater opportunity for private sector support?
    • Absolutely; legislature providing the seed funding but believe that the business sector will add their fiscal support

 HB 3003 left pending

 

HB 3351 (Pacheco et al.) Relating to establishing the Texas Commission on Community College Finance

  • No fiscal note
  • Creates finance committee that will study and make recommendations for how we fund community colleges in the future (88th session)

Jacob Fraire, Texas Association of Community Colleges – For

  • Important time to review community colleges with a forward-looking view
  • State has changed dramatically in the last half century, need to look at community colleges for the next generation

 

Todd Williams, CEO of Commit Partnership – For

  • Data informed approach, seeing what works and what does not, creates effective, out-comes driven bills
  • 343,000 8th graders start postsecondary process, 21% do not complete HS in 4 years, 26% do not go to college, 30% do not finish college
  • Murphy – If this bill can do anything similar to HB 3, that would be great.

 

Robert Glaser, Houston Community College Board of Trustees, CAT – For

  • Funding formula no longer adequate for determining actual needs for community colleges, also not sustainable for state appropriations
  • State funding formula the least predictable funding mechanism
  • Economy has changed dramatically in the last 50 years, Community Colleges have had to change their offerings, student body has also changed
  • Funding model does not take into account funding students with higher needs
  • Consider community colleges as assets

HB 3351 left pending

 

HB 4361 (Raney) Relating to off-campus workforce education or lower-division programs offered by a public institution of higher education at the request of an employer

  • Currently employers restricted to partnering with colleges in service district area; creates unnecessary barriers
  • Amends chapter 51 education code
  • Increases access to training and education

 

Mike Moroney, Texas Association of Manufacturers – For

  • All recognize that public junior colleges have a mixed mission; some students aim to transfer out, others want associates degree, other need technical training
  • Service districts are much larger; cannot always justify programs due to tax authority
  • Bill allows employers to work with other higher ed institutions to serve students

 

Erin Valdez, Texas Public Policy Foundation – For

  • Flood of businesses relocating to Texas; do not want to import workers from other states when Texans are unemployed
  • Need to allow businesses to upscale employees when needed
  • Seen success with similar programs in Kentucky
  • Employers need to develop talents of employees quickly and efficiently

HB 4361 left pending

 

HB 4403 (Turner, John) Relating to an agreement between a school district and public institution of higher education to provide a dual credit program to high school students enrolled in the district

  • Nearly 200,000 high school students enrolled in these programs, need good advising to understand what they are doing
  • Would add requirement in the contract of two institutions that employee be designated to advise students involved in these programs

 

Chris Walters, Policy Analyst Texas 2036 – For

  • Dual credit great opportunity for high school students; not living up to its potential in Texas
  • Students withdraw or fail from many DE classes
  • Advisors can play key role in finding courses that align with college credit and ensure students know effects on GPA

 

Closing, Turner

  • Murphy – You are not mandating that someone is hired to do this, correct?
    • No this is purely something to be done with an existing person
  • Murphy – Lots of support here for that

HB 4403 left pending