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