By: Branch, Pitts, Taylor of Galveston, H.B. No. 9
Patrick, Villarreal, et al.
A BILL TO BE ENTITLED
AN ACT
relating to student success-based funding for and reporting
regarding public institutions of higher education.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. This Act shall be known as the Higher Education
Outcomes-Based Funding Act.
SECTION 2. Sections 61.059(a) and (c), Education Code, are
amended to read as follows:
(a) To finance a system of higher education and to secure an
equitable distribution of state funds deemed to be available for
higher education, the board shall perform the functions described
in this section. Funding policies shall:
(1) allocate resources efficiently and provide
incentives for programs of superior quality and for institutional
diversity;
(2) provide incentives for supporting the five-year
master plan developed and revised under Section 61.051; [and]
(3) discourage unnecessary duplication of course
offerings between institutions and unnecessary construction on any
campus; and
(4) emphasize an alignment with education goals
established by the board.
(c) Formulas for basic funding shall:
(1) reflect the role and mission of each institution;
(2) [, shall] emphasize funding elements that directly
support faculty;
(3) [, and shall] reflect both fixed and variable
elements of cost; and
(4) incorporate, as the board considers appropriate,
goals identified in the board's long-range statewide plan developed
under Section 61.051.
SECTION 3. Subchapter C, Chapter 61, Education Code, is
amended by adding Section 61.0593 to read as follows:
Sec. 61.0593. STUDENT SUCCESS-BASED FUNDING
RECOMMENDATIONS. (a) The legislature finds that it is in the
state's highest public interest to evaluate student achievement at
institutions of higher education and to develop higher education
funding policy based on that evaluation. Funding policies that
promote postsecondary educational success based on objective
indicators of relative performance, such as degree completion
rates, are critical to maintaining the state's competitiveness in
the national and global economy and supporting the general welfare
of this state. Therefore, the purpose of this section is to ensure
that institutions of higher education produce student outcomes that
are directly aligned with the state's education goals and economic
development needs.
(b) In this section:
(1) "At-risk student" means an undergraduate student
of an institution of higher education:
(A) who has been awarded a grant under the
federal Pell Grant program; or
(B) who, on the date the student initially
enrolled in the institution:
(i) was 20 years of age or older;
(ii) had a score on the Scholastic
Assessment Test (SAT) or the American College Test (ACT) that was
less than the national mean score for students taking that test;
(iii) was enrolled as a part-time student;
or
(iv) had not received a high school diploma
but had received a high school equivalency certificate within the
last six years.
(2) "Critical field" means a field of study designated
as a critical field under Subsection (c).
(c) Except as otherwise provided under Subdivision (2), the
fields of engineering, computer science, mathematics, physical
science, allied health, nursing, and teaching certification in the
field of science or mathematics are critical fields. Beginning
September 1, 2012, the board, based on the board's determination of
those fields of study in which the support and development of
postsecondary education programs at the bachelor's degree level are
most critically necessary for serving the needs of this state, by
rule may:
(1) designate as a critical field a field of study that
is not currently designated by this subsection or by the board as a
critical field; or
(2) remove a field of study from the list of fields
currently designated by this subsection or by the board as critical
fields.
(d) This subsection applies only to a general academic
teaching institution other than a public state college. In
devising its base funding formulas and making its recommendations
to the legislature relating to institutional appropriations of base
funds under Section 61.059 for institutions to which this
subsection applies, the board, in the manner and to the extent the
board considers appropriate and in consultation with those
institutions, shall incorporate the consideration of undergraduate
student success measures achieved during the preceding state fiscal
biennium by each of the institutions. The success measures
considered by the board under this subsection must include:
(1) the total number of bachelor's degrees awarded by
the institution;
(2) the total number of bachelor's degrees in critical
fields awarded by the institution;
(3) the total number of bachelor's degrees awarded by
the institution to at-risk students; and
(4) as determined by the board, the six-year
graduation rate of students of the institution who initially
enrolled in the institution in the fall semester immediately
following their graduation from a public high school in this state
as compared to the six-year graduation rate predicted for those
students based on the composition of the institution's student
body.
(e) This subsection applies only to public junior colleges,
public state colleges, and public technical institutes. In
devising its funding formulas and making its recommendations to the
legislature relating to institutional appropriations of incentive
funds for institutions to which this subsection applies, the board,
in the manner and to the extent the board considers appropriate and
in consultation with those institutions, shall incorporate the
consideration of the undergraduate student success measures
achieved during the preceding state fiscal biennium by each of the
institutions. The success measures considered by the board under
this subsection must include:
(1) the following academic progress measures achieved
by students at the institution:
(A) successful completion of:
(i) developmental education in
mathematics;
(ii) developmental education in English;
(iii) the first college-level mathematics
course with a grade of "C" or higher;
(iv) the first college-level English course
with a grade of "C" or higher; and
(v) the first 30 semester credit hours at
the institution; and
(B) transfer to a four-year college or university
after successful completion of at least 15 semester credit hours at
the institution; and
(2) the total number of the following awarded by the
institution:
(A) associate's degrees;
(B) bachelor's degrees under Section 130.0012;
and
(C) certificates identified by the board for
purposes of this section as effective measures of student success.
(f) The board shall include in its findings and
recommendations to the legislature under Section 61.059:
(1) an evaluation of the effectiveness of the student
success measures described by this section in achieving the purpose
of this section during the preceeding state fiscal biennium; and
(2) any related recommendations the board considers
appropriate.
(g) The board shall adopt rules for the administration of
this section, including rules requiring each institution of higher
education to submit to the board any student data or other
information the board considers necessary for the board to carry
out its duties under this section.
SECTION 4. Subchapter C, Chapter 61, Education Code, is
amended by adding Section 61.0905 to read as follows:
Sec. 61.0905. REPORTS TO JOINT OVERSIGHT COMMITTEE. (a)
Not later than each September 15, the board shall submit to the
Joint Oversight Committee on Higher Education Governance,
Excellence, and Transparency a written report reviewing,
comparing, and highlighting national and global best practices on:
(1) improving student outcomes, including student
retention, graduations, and graduation rates; and
(2) higher education governance, administration, and
transparency.
(b) This section expires August 31, 2013.
SECTION 5. This Act takes effect September 1, 2011.