At the Coordinating Board's quarterly meeting, Thursday, July 28, Commissioner of Higher Education Raymund Paredes provided a brief update on HB 9, a new statute that sets in motion a process for potential outcomes-based funding for all public colleges and universities in Texas.
Here's a previous post for background. Importantly, the substance of this initiative depends upon the appropriations process in the next Regular Session, which convenes January 2013.
TCCTA opposed HB 9 in House and Senate testimony.
Dr. Paredes said that outcomes-based funding is a growing national trend. In fact, the goal was recently endorsed by the National Governors Association. He cited Tennessee as the state with the most experience with the concept, where policy makers have reportedly determined that their two-to-five percent support for the program is too small to make any difference. Dr. Paredes said this strengthens the argument for the Coordinating Board's recommendation of ten percent.
The commissioner stated that the 2011 Session failed to fully enact outcomes-based funding for the next biennium (2012-13) because some institutions were concerned about the program's impact upon their particular schools. He also said the current budget situation convinced some leaders that it was an inopportune time to make changes, though he argued precisely the opposite.
In conclusion, Dr. Paredes added that outcomes-based funding for higher education would be his highest priority for the next Regular Session.