Texas 2015 - 84th Regular

Texas Senate Bill SB22 Compare Versions

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1	1	By: Zaffirini S.B. No. 22
2	2
3	3
4	4	A BILL TO BE ENTITLED
5	5	AN ACT
6	6	relating to outcomes-based funding for general academic teaching
7	7	institutions.
8	8	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
9	9	SECTION 1. Subchapter D, Chapter 62, Education Code, is
10	10	amended to read as follows:
11	11	SUBCHAPTER D. OUTCOMES-BASED FUNDING FOR GENERAL ACADEMIC
12	12	TEACHING INSTITUTIONS [PERFORMANCE INCENTIVE FUNDING]
13	13	Sec. 62.071. DEFINITIONS. In this subchapter:
14	14	(1) "At-risk student" means an undergraduate student
15	15	of an eligible institution:
16	16	(A) whose score on the Scholastic Assessment Test
17	17	(SAT) or the American College Test (ACT) is less than the national
18	18	mean score of students' scores on that test;
19	19	(B) who has been awarded a grant under the
20	20	federal Pell Grant program;
21	21	(C) who was 20 years of age or older on the date
22	22	the student initially enrolled in the institution;
23	23	(D) who is enrolled as a part-time student; or
24	24	(E) who did not receive a high school diploma but
25	25	received a high school equivalency certificate [within the last six
26	26	years].
27	27	(2) ["Critical field" means:
28	28	[(A) the field of engineering, computer science,
29	29	mathematics, physical science, allied health, nursing, or teacher
30	30	certification in a field of science or mathematics; and
31	31	[(B) any other field of study identified as a
32	32	critical field by the coordinating board in "Closing the Gaps," the
33	33	state's master plan for higher education.
34	34	[(3) "Eligible institution" means a general academic
35	35	teaching institution other than a public state college.
36	36	[(4)] "General academic teaching institution" has
37	37	[and "public state college" have] the meaning [meanings] assigned
38	38	by Section 61.003.
39	39	Sec. 62.072. BIENNIAL DISTRIBUTION OF FUNDS TO GENERAL
40	40	ACADEMIC TEACHING INSTITUTIONS BASED ON OUTCOMES METRICS POINTS.
41	41	(a) Except as provided by Section 62.073, for each state fiscal
42	42	biennium, the coordinating board shall distribute any funds
43	43	appropriated to the coordinating board by the legislature for the
44	44	purposes of this subchapter, and any other funds made available for
45	45	the purposes of this subchapter, to general academic teaching
46	46	institutions in proportion to each institution's percentage of the
47	47	total number of outcomes metrics points assigned to all general
48	48	academic teaching institutions under Section 62.074 for that state
49	49	fiscal biennium.
50	50	(b) Notwithstanding Subsection (a), for the state fiscal
51	51	biennium ending August 31, 2017, the percentage share of
52	52	outcomes-based funding allocated to a general academic teaching
53	53	institution under that subsection may not be less than 99.5 percent
54	54	of the percentage share of instruction and operations funding under
55	55	Section 61.059 appropriated to all general academic teaching
56	56	institutions for undergraduate education for that biennium that is
57	57	allocated to the institution. The coordinating board may adjust in
58	58	an equitable manner the distribution amounts to which institutions
59	59	would otherwise be entitled under Subsection (a) as necessary to
60	60	comply with this subsection. This subsection expires September 1,
61	61	2017.
62	62	(c) Notwithstanding Subsection (a), for the state fiscal
63	63	biennium ending August 31, 2019, the percentage share of
64	64	outcomes-based funding allocated to a general academic teaching
65	65	institution under that subsection may not be less than 99 percent of
66	66	the percentage share of instruction and operations funding under
67	67	Section 61.059 appropriated to all general academic teaching
68	68	institutions for undergraduate education for that biennium that is
69	69	allocated to the institution. The coordinating board may adjust in
70	70	an equitable manner the distribution amounts to which institutions
71	71	would otherwise be entitled under Subsection (a) as necessary to
72	72	comply with this subsection. This subsection expires September 1,
73	73	2019. [FUNDING. (a) For each state fiscal year, the coordinating
74	74	board shall distribute any performance incentive funds
75	75	appropriated by the legislature for purposes of this subchapter,
76	76	and any other funds made available for the purposes of this
77	77	subchapter, to eligible institutions as follows:
78	78	[(1) 50 percent to be distributed among eligible
79	79	institutions in proportion to the increase, if any, in the average
80	80	number of degrees awarded annually by each institution in the two
81	81	most recent fiscal years from the average number of degrees awarded
82	82	annually by that institution in the two fiscal years immediately
83	83	preceding those fiscal years, using the weights assigned to each
84	84	degree under the table prescribed by Subsection (b); and
85	85	[(2) the remaining 50 percent to be distributed among
86	86	eligible institutions in proportion to the average number of
87	87	degrees awarded annually by each institution in the three most
88	88	recent fiscal years, using the weights assigned to each degree
89	89	under the table prescribed by Subsection (b).
90	90	[(b) A number of points is assigned for each degree awarded
91	91	by an eligible institution according to the following table:
92	92	[POINTS
93	93	[Noncritical Field/Not At-Risk Student 1.0
94	94	[Noncritical Field/At-Risk Student 2.0
95	95	[Critical Field/Not At-Risk Student 2.0
96	96	[Critical Field/At-Risk Student 3.0]
97	97	Sec. 62.073. DISTRIBUTION OF FUNDS CONTINGENT ON FULL
98	98	FUNDING OF BASE FORMULA FUNDING. Funds may be distributed under
99	99	this subchapter for a state fiscal biennium only if the instruction
100	100	and operations formula for all general academic teaching
101	101	institutions for undergraduate education under Section 61.059 is
102	102	funded by appropriation for that biennium at a level, per weighted
103	103	semester credit hour, that is equal to or greater than the level at
104	104	which that formula was funded by appropriation for all general
105	105	academic teaching institutions in the preceding state fiscal
106	106	biennium, as that level is adjusted for inflation.
107	107	Sec. 62.074. OUTCOMES METRICS POINTS; COMPUTATION
108	108	METHODOLOGY. (a) For each state fiscal biennium, scaled points
109	109	are assigned to each general academic teaching institution for each
110	110	of the following outcomes-based metrics, computed as follows:
111	111	(1) Total Number of Undergraduate Degrees--the total
112	112	number of undergraduate degrees awarded by the institution,
113	113	including degrees awarded to students who transferred to the
114	114	institution;
115	115	(2) Total Number of Undergraduate Degrees Adjusted By
116	116	Graduation Rate--the total number of undergraduate degrees awarded
117	117	to students by the institution, or awarded by another institution
118	118	to a student who completed at least 50 percent of the student's
119	119	degree requirements as a first-time, full-time student at the
120	120	institution, multiplied by the institution's three-year graduation
121	121	rate for undergraduates, if the institution is a public state
122	122	college, or by the institution's six-year graduation rate for
123	123	undergraduates, if the institution is not a public state college,
124	124	the product of which is multiplied by 7;
125	125	(3) Total Number of Undergraduate Degrees Per 100
126	126	Undergraduate Full-time Student Equivalents--the total number of
127	127	undergraduate degrees awarded by the institution divided by the
128	128	number of full-time undergraduate student equivalents enrolled in
129	129	the fall semester, as reported in the coordinating board's higher
130	130	education accountability system, the quotient of which is
131	131	multiplied by 100, and the product of which is multiplied by 25;
132	132	(4) Total Number of Undergraduate Degrees Awarded To
133	133	At-risk Students--the total number of undergraduate degrees
134	134	awarded by the institution to at-risk students, multiplied by 7;
135	135	(5) 25 Percent Degree Completion--the total number of
136	136	undergraduate students at the institution having successfully
137	137	completed at least 25 percent of the student's degree requirements
138	138	or having earned at least 30 credit hours toward a 120-credit-hour
139	139	degree, including hours earned toward the degree at another
140	140	institution before transferring to the institution, multiplied by
141	141	1.5;
142	142	(6) 50 Percent Degree Completion--the total number of
143	143	undergraduate students at the institution having successfully
144	144	completed at least 50 percent of the student's degree requirements
145	145	or having earned at least 60 credit hours toward a 120-credit-hour
146	146	degree, including hours earned toward the degree at another
147	147	institution before transferring to the institution, multiplied by
148	148	2.5; and
149	149	(7) 75 Percent Degree Completion--the total number of
150	150	undergraduate students having successfully completed at least 75
151	151	percent of the student's degree requirements or having earned at
152	152	least 90 credit hours toward a 120-credit-hour degree, including
153	153	hours earned toward the degree at another institution before
154	154	transferring to the institution, multiplied by 4.
155	155	(b) For each state fiscal biennium, each metric prescribed
156	156	by Subsection (a) is computed using the average of the applicable
157	157	variables for the three most recent academic years for which the
158	158	information is available, as determined on the January 1 preceding
159	159	the biennium.
160	160	(c) Each state fiscal biennium, a general academic teaching
161	161	institution shall compute the institution's scaled points on each
162	162	of the metrics under Subsection (a). After computing its scaled
163	163	points for each of the metrics, the institution shall assign one of
164	164	the following percentage weights to each of the metrics' scaled
165	165	points:
166	166	(1) 25 percent;
167	167	(2) 25 percent;
168	168	(3) 20 percent;
169	169	(4) 15 percent;
170	170	(5) 10 percent;
171	171	(6) five percent; and
172	172	(7) zero percent.
173	173	(d) In assigning the percentage weights under Subsection
174	174	(c), a general academic teaching institution:
175	175	(1) shall prioritize the metrics the institution
176	176	considers most advantageous to maximizing the institution's total
177	177	number of points under this section; and
178	178	(2) may not assign the zero percentage to the Total
179	179	Undergraduate Degrees Awarded To At-risk Students metric.
180	180	(e) After assigning the percentage weights to its metrics
181	181	under Subsection (c), a general academic teaching institution shall
182	182	multiply the scaled points for each of its metrics by the applicable
183	183	percentage weight to determine its weighted total points for each
184	184	metric. The institution's total number of outcomes metrics points
185	185	under this section is the sum of the institution's weighted total
186	186	points for all metrics.
187	187	(f) Notwithstanding Subsection (c) , in the two state fiscal
188	188	bienniums following the initial state fiscal biennium for which
189	189	percentage weights are assigned under Subsection (c), a general
190	190	academic teaching institution must assign the same percentage
191	191	weight to each metric as was assigned by the institution under
192	192	Subsection (c) in the initial biennium.
193	193	Sec. 62.075. COORDINATING BOARD MONITORING; REPORTING. The
194	194	coordinating board shall monitor and evaluate the equity and
195	195	effectiveness of outcomes-based funding under this subchapter and
196	196	report its results, including relevant details and recommendations
197	197	for legislative action, to each legislative standing committee or
198	198	subcommittee with primary jurisdiction over higher education not
199	199	later than October 1 of each even-numbered year. The coordinating
200	200	board's report must include any recommendations for refining the
201	201	definition of "at-risk students" under Section 62.071.
202	202	Sec. 62.076. RULES. The coordinating board shall adopt
203	203	rules for the administration of this subchapter, including any
204	204	rules the coordinating board considers necessary regarding:
205	205	(1) standardization of the computation of metrics
206	206	under Section 62.074; and
207	207	(2) the submission to the coordinating board by
208	208	general academic teaching [eligible] institutions of any
209	209	information [student data] required for the coordinating board to
210	210	carry out its duties under this subchapter.
211	211	SECTION 2. This Act takes effect immediately if it receives
212	212	a vote of two-thirds of all the members elected to each house, as
213	213	provided by Section 39, Article III, Texas Constitution. If this
214	214	Act does not receive the vote necessary for immediate effect, this
215	215	Act takes effect September 1, 2015.