Texas House Bill HB430

Texas 2017 - 85th Regular

• Filed: 11/21/16

Caption

Relating to outcomes-based funding for general academic teaching institutions.

Impact

The legislation introduces a tiered funding formula where institutions receive varying amounts based on the type of degree awarded. For example, institutions will receive $500 for each baccalaureate degree awarded to a non-at-risk student and $1,000 for degrees awarded to at-risk students. This mechanism is seen as a means to encourage institutions to enhance their support for at-risk students, which may ultimately lead to better graduation rates and workforce readiness.

Summary

House Bill 430 aims to establish outcomes-based funding for general academic teaching institutions in Texas. The bill intends to allocate financial resources based on the number of baccalaureate degrees awarded, with additional incentives for degrees awarded to at-risk students. This funding structure is designed to promote educational success and improve retention rates among vulnerable populations, ensuring that higher education institutions are held accountable for their performance in educating students who may face significant challenges.

Contention

While many supporters believe that this bill will address critical educational disparities, there are concerns that tying funding to outcomes may disproportionately affect institutions serving a higher number of at-risk students. Critics argue that this funding model could place undue pressure on institutions to achieve certain outcomes, potentially leading to adverse practices such as steering students away from challenging programs to ensure favorable metrics. Furthermore, the bill's reliance on regular state appropriations for sustainable funding raises questions about the long-term viability of the proposed changes.