TCCTA Blog

HB 9 Set to Become Law

This is the first in a series of posts assessing the 82nd Regular Session, which adjourned yesterday.

Today's Special Session, at least so far, does not involve an agenda that directly includes community and technical colleges. Please consult the TCCTA Web site frequently for updates.

The national movement toward "outcomes-based" funding of higher education took a significant step forward in Texas with the passage of HB 9. (For background, please review previous posts on this subject.)

TCCTA opposed HB 9 in House and Senate committee testimony. The bill was supported by a plethora of business-oriented organizations, including the Texas Association of Business, the Governor's Business Council, the Texas Public Policy Foundation, and Texans for Prosperity. Its sponsor is Rep. Dan Branch (R-Dallas), who chairs the House Committee on Higher Education. Gov. Perry made it a major priority as well.

Some of the association's concerns were addressed in the Senate version of HB 9, the text of which ended up in the final form. In general the new language is more flexible in scope than in the bill as originally filed. For instance, the final bill uses "may" instead of "must" regarding proposed key measures of student success.

The new law will likely spur abundant questions regarding its interpretation and impact.

Basically the bill sets up a regimen for recommendations to be developed by the Coordinating Board, and presented to the newly-formed Joint Oversight Committee on Higher Education Governance, Excellence, and Transparency. These recommendations will be considered subsequently by the next Regular Session of the Legislature.

HB 9 does not directly affect appropriations for the forthcoming (2012-13) biennium.

The bill states that "not more than ten percent of the total amount of general revenue appropriations of base funds for undergraduate education" would be used for incentive funding. One issue to be watched carefully is whether any incentive funds are a component of base formula funding, or supplemental to it. According to testimony, either option is possible under the plan.

For two-year college educators, the heart (and principal controversy) of HB 9 involves its proposed outcomes measures. In the wording of the bill, "The success measures considered by the [Coordinating] board under this subsection may include" achievement in

• developmental education in mathematics
• developmental education in English
• the first college-level mathematics course with a grade of "C" or higher
• the first college-level English course with a grade of "C" or higher
• the first 30 semester credit hours at the institution
• transfer to a four-year college or university after successful completion of at least 15 semester credit hours at the institution
• the total number of associate's degrees and certificates

TCCTA will follow the implementation process carefully and work to achieve a result that is consistent with academic integrity.

From the "Enrolled" (final version) Fiscal Note:

Under provisions of the bill, the Higher Education Coordinating Board would incorporate the consideration of certain student success measures in its formula recommendations to the legislature.

Under provisions of the bill, the impact of the success measures would be not more than 10 percent of the total amount of general revenue appropriations of base funds for undergraduate education recommended by the Board.

The bill would require the Higher Education Coordinating Board to 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 no later than September 20, 2011 and subsequently no later than July 1, 2012. This provision would be absorbed within existing resources.

 Here's the "Enrolled" HB 9, which was only recently made available.

Special Session Looms

A Sunday night filibuster in the Senate has prevented the Regular Session from concluding its business today as scheduled. It looks like a Special Session may be called, for as early as Tuesday. The governor determines the topics that are subject to consideration.

In Special Sessions, the topics tend to grow beyond the original intent.

It's possible that the Legislature can wrap up today, but unlikely since school finance remains in play. The backlog of bills remains formidable, including a number of measures that pertain to community and technical colleges.

Some Capitol observers are predicting a long summer, while others say any Special Session will be brief. When it's safe to conclude the work of the 2011 Legislature is concluded, the TCCTA blog will undertake an assessment of its results.

Here's the take of Mike Ward and Kate Alexander of the Austin American-Statesman:

Gov. Rick Perry was ready to call lawmakers back Tuesday for a special legislative session to deal with the budget issues, a spokesman said Sunday night.
SB 1811 is essential to balancing the 2012-13 budget that both chambers approved Saturday night and sent to Gov. Rick Perry’s desk.
The bill frees up $3.7 billion, mostly by bumping a school payment into the next budget. It also enacts significant changes to the school finance law that are required if schools are to be funded over the next two years.
Lt. Gov. David Dewhurst said that the only hope for SB 1811 is to get 25 votes on Monday — four-fifths of the house — to bring the bill up for passage.
“There are only 19 Republicans in the Senate,” he said, when asked what the chance of a Monday vote like that would be.
Without the school finance change in SB 1811, the $37 billion appropriation in the state budget for public school aid would be void, and the Legislature would have to return for a special session.
The budget passed by both chambers Saturday night will not need to be reconsidered even though SB 1811 has gone down. There is money enough to balance the budget without the anticipated $3.5 billion in revenue because wiping out school appropriation frees up $37 billion. Under the Texas Constitution, the state budget must be balanced.
Already, a short special session was expected sometime this summer — to deal with the overhaul of the Texas Windstorm Insurance Association and perhaps the redrawing of congressional district maps.
But Perry would keep lawmakers in Austin this week to deal with the big-ticket item, spokesman Mark Miner said.

ERS Sets Rates for Next Plan Year

On May 24, the ERS Board of Trustees approved health insurance carriers, preliminary premium rates, and optional life insurance rates for Plan Year 2012.

These adjustments are not related to the current Regular Session's activities, which pertain largely to the next biennium's budget.

Premium rate increases, effective September 1, were needed to address the insurance funding gap, according to an official statement. ERS will send more information on Plan Year 2012 benefits prior to this summer’s annual enrollment period, July 11-August 5.

During the meeting, the Board:

• Increased the premium rates for HealthSelectSM of Texas and the Community First and Scott & White Health Plan HMOs by an average of 8%;
• Kept the Dental DHMO premiums at the same rate as last year;
• Increased premiums slightly for the State of Texas Dental Choice PlanSM; and
• Kept premiums for optional insurance—Optional Term Life, Dependent Term Life, Short- and Long-term Disability Insurance, and Voluntary Accidental Death and Dismemberment—at the same rate as last year.

Here's the link. Just click on "preliminary premium rates."

Coordinating Board Site Includes Institutional Data

As reported here previously, the Coordinating Board has published the Texas Higher Education Almanac, available here from the Board's Web site. Of particular interest is comparative data for all colleges and universities in Texas. By navigating through the site, users can find a host of interesting information.

Community and technical college educators are urged to scrutinize the information displayed on the site for their schools. The data is provided by each institution to the Coordinating Board, but reports persist that some statistics are incomplete or incorrect.

This could prove especially important in the future as the state moves in the direction of "outcomes-based" funding. Not to mention the fact that you don't want misconceptions to arise on the part of students, taxpayers, and parents.

Those who detect information that could be erroneous should report any problems to administrative leaders at their school. There are other issues associated with data collection and presentation, but the first step should be to make sure the current information is correct.

HB 9 Passes Senate

The Senate approved HB 9 on Tuesday, May 24. The bill would initiate steps toward "outcomes-based" funding for colleges and universities. For background, please see this post.

The bill must now return to the House to reconcile differences between the two versions. A current version of the Senate bill, including any amendments, is not available at this time. When it becomes available, it will appear at this site.

As the witness lists indicate, TCCTA opposed the bill in House and Senate committees.

Here's this morning's take of the Austin American-Statesman:

Lawmakers advanced legislation to base some college and university funding on student performance.

The Senate approved a bill Tuesday to free the Higher Education Coordinating Board to create funding formulas for institutions based on student achievement. The bill now returns to the House.

The board would establish objective benchmarks for measuring student performance at a college, such as graduation rates, number of bachelor's degrees awarded and the number of students graduating in critical fields. Supporters say Texas needs to use financial incentives to ease dropout rates that cost taxpayers. Opponents argue that the measure will cause colleges to lower academic standards or give unearned grades to meet the financial pressure.

30,000 Students to Lose Financial Aid

Budget negotiators intend to cut revenue from the TEXAS Grants program that would have gone to 30,000 students, according to the Texas Politics blog by Peggy Fikak of the Houston Chronicle.

A total of 106,000 students received TEXAS grants in the current biennium. The latest proposal emerging from the House-Senate conference committee on the budget would cover 77,300 students, "including all 44,200 of those who are renewals and the rest students getting first-time awards," according to the post.

The panel intends to vote on the overall budget Thursday, sending the compromise back to the full chambers for approval, reports indicate. Adjournment is set for May 30.

In terms of financial aid, apparently it could have been worse. From the piece:

The financial aid reduction is the best higher education officials could have hoped for since it followed the more generous Senate proposal.

Under the original House plan, there would have been no new Texas Grants awarded, with the aid going only to renewing students already getting the help.

“We’re grateful that the Legislature tried to mitigate the cuts in financial aid as much as possible in this current budget environment, and we’re going to do whatever we can to make sure that that money is used effectively by encouraging programs that promote student success and encouraging programs at the institutional level that also encourage students to do more to actually complete their programs,” said Higher Education Commissioner Raymund Paredes.

The funding backed by negotiators would fund Texas Grants at 90 percent of its current funding level, or $559.7 million. But the cut in new students getting aid is expected to be more than 10 percent because of riding costs, Parades said.

 

HB 9 Attracts Media

A bill that would take important steps toward a system of outcomes-based funding for colleges and universities (see the previous post for more information) has begun to attract the attention of media outlets, both in Texas and nationwide.

HB 9 appears poised to become law, with one week left in the Regular Session. At a hearing on Friday, May 20, the Senate Committee on Higher Education recommended passage in the full chamber of a Committee Substitute of the bill. Here is the most current version.

TCCTA testified against HB 9 in House and Senate committee hearings.

Regarding media coverage, here's the take of the Texas Tribune:

HB 9 relates to higher education funding and the state’s goal of graduating more students by 2015. The funding is intended to de-emphasize funding based on enrollment and to reward outcomes. The bill already passed the House. It was stuck in the Senate until Gov. Rick Perry made it a part of the budget negotiations in closed-door meetings with House and Senate leaders. The Senate Higher Education Committee revived the bill and passed it.

Washington Monthly, an influential national publication, took notice of the issue recently. Here's an excerpt from a brief article by Daniel Luzer:

Lots of states are worried about low graduation rates at public colleges. Because state colleges receive funding based on enrollment numbers, there’s not much incentive, so the thinking goes, for colleges to really educate students. Colleges don’t get any more money if more students graduate; they don’t get any less if students don’t actually finish college.

At the same time, many pundits are worried about grade inflation, the increase in the average college student’s grades over time. Many higher education thinkers believe this indicates a decline in standards.

The trouble is that in an effort to address the first problem, states might actually be facilitating the second problem.

It is important to insert here that community colleges nationwide have experienced far less grade inflation than selective institutions, according to most reports. On the other hand, the metrics used to measure grades may not factor in drops—a common pathology for two-year college students. Many students simply disappear (often very early in the term) due to a host of personal and financial reasons. That's the core of the problem regarding student success, not a lack of incentive. As TCCTA's testimony and Talking Points emphasize, no one wants students to succeed more than teachers.

The WM piece cited an editorial in the Corpus Christi Caller-Times, which relates to HB 9 directly, and its potential for harm to quality and standards. An excerpt:

If only HB 9 were as good as both its intentions and its apparent chances of becoming law. With Gov. Rick Perry and the Higher Education Coordinating Board in favor of it, only the Senate stands in the way.

We urge that the Senate reject this bill, which we would have named the Grade Inflation and Excellence Reduction Act of 2011 because that's what will happen if it becomes law.

We're surprised that 118 House members would overlook the obvious. If they give colleges and universities a monetary incentive to inflate grades and make courses easier, grades will inflate and courses will become easier.

 

 

TCCTA Leaders Testify

On May 18, TCCTA Immediate Past President Fred Newbury and Executive Director Richard Moore testified against HB 9, a bill that would implement performance funding for all Texas higher education, utilizing the "momentum points" advocated by the Coordinating Board and Higher Education Commissioner Raymund Paredes.

The TCCTA testimony was presented to the Senate Committee on Higher Education, chaired by Sen. Judith Zaffirini (D-Laredo).

HB 9, authored by Rep. Dan Branch (R-Dallas), has passed the House of Representatives. Importantly, it may be subject to changes before adjournment on May 30.

The amount of revenue devoted to performance funding is not stipulated in the presently available text of the bill, but earlier language, and testimony from Dr. Paredes on May 18, point toward ten percent of total formula appropriations as the goal.

The measure, part of a national "reform" effort, is supported by a plethora of business-oriented organizations, including the Texas Association of Business, the Governor's Business Council, the Texas Public Policy Foundation, and Texans for Prosperity.

HB 9 would reward colleges and universities financially for student success along thresholds of advancement toward degrees and certificates, including course passage milestones, successful transfers, and achievement by at-risk students and those in certain "critical" professional fields.

Dr. Newbury presented himself as an instructor of economics at Richland College, in addition to his position with TCCTA.

Here are his remarks, in part:

• TCCTA welcomes all valid documentation of college performance, such as the measures reported under current law to the Coordinating Board.
• Community colleges are held accountable by the Southern Association of Colleges and Schools, the regional accrediting agency for professional standards. Faculty in many workforce disciplines must report to accrediting agencies at the state or national level. Colleges are also accountable to local taxpayers through policies enacted by elected trustees. Faculty members are evaluated routinely by college administrators under local board policies. Student evaluations are an important component of this process.
• Community colleges are in the process of innovating new ways to improve student success. Providing incentive funding for outcomes we are simply not yet able to achieve (short of simply awarding grades that have not been earned) is damaging to our institutions. Investing in innovation, rather than developing incentive programs, is the best way to achieve the results we are all seeking.
• No one wants students to succeed more than teachers. The Coordinating Board’s proposal to reward student success assumes that a new funding mechanism will create a novel motivation. We see no empirical evidence to suggest such a correlation. If the state wishes to undertake a policy of performance or incentive funding, it should do so carefully and with ample opportunity for students, faculty, and other stakeholders to provide insights about the unintended consequences it could have.
• Students often take workforce training courses with no intention of certification or graduation, and part-time students (who constitute the majority of two-year college enrollment) may take many years to reach a personal objective. The complete mission of community colleges should be funded without penalty.
• There are times when advising a student to stay in class would be unethical, since a failing grade often closes the door on a fresh start later. These decisions are highly personal and complex and should not be subjected to a simplistic, centralized remedy.The Coordinating Board’s current proposals could place the interests of students at odds with the financial interests of institutions. We believe a student should never be advised to choose a particular option simply because of the way the college receives its appropriation.

Richard Moore concluded the TCCTA testimony by pointing out that the Closing the Gaps initiative has succeeded impressively during the last ten years in enrolling an entirely new population of students—individuals who require innovative approaches in teaching. In terms of student success, "We are beginning to get results," he said. "The difficulty is in bringing best practices and pilot programs to scale."

He encouraged the lawmakers to invest in innovations that have demonstrated real promise and to support these efforts consistently with revenue.

The bill has, according to chair Zaffirini during the hearing, become less popular with her colleagues over the course of the Regular Session.

TCCTA Members Visit with Lawmakers in Austin

TCCTA Capitol Day, conducted as scheduled in Austin on May 18, focused on a number of key issues, as members visited with local delegations during the closing days of the Regular Session. Association lobbyist Beaman Floyd provided suggestions for constructive dialogue with lawmakers and staff members during the entire event.

In addition, early in the day, TCCTA Immediate Past President and Executive Director Richard Moore testified in opposition to HB 9, a bill that would implement a new system of performance funding based on the Coordinating Board's "momentum points" of student success. (A subsequent post will cover this subject in more detail.)

Members from campuses all over Texas participated in TCCTA Capitol Day, focusing on their own representatives and senators, as well as important committee members, including the Senate Committee on Higher Education and the conference committee on HB 1, which is currently attempting to forge a compromise between House and Senate versions of the state budget for the next biennium. The state office supplied material for distribution in lawmakers' offices, including concise Talking Points on HB 9 and other important issues related to community and technical colleges in Texas.

The TCCTA Legislative Committee is chaired by Suzanne Morales-Vale, Central Texas College.

Please visit the TCCTA Web site frequently for updates.

Wednesday is TCCTA Capitol Day

There are only a few days left in the Regular Session, but there is still time to make your voice heard to  senators and representatives. TCCTA is sponsoring a day devoted to visiting with lawmakers about the looming impact of budget cuts to community and technical colleges in Texas, and other important issues.

The schedule for the event will be flexible, to accommodate people arriving throughout the day, so please come when you are able and stay as long as your travel plans allow. While the date for this event comes at a difficult time in the calendar, pivotal issues in the legislative session require our presence and involvement.

We hope as many people as possible from your college will attend this event, so please make your plans now—and coordinate travel plans with colleagues who may also be attending.

Members of TCCTA staff and the Legislative Committee will be available on May 18 from 9:00 a.m. - 3:30 p.m. in room E1.020 (upper level of the Extension, near the outdoor rotunda) to answer questions and to distribute materials.

Please join us! Here's the link for more information.