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Helping Community Colleges Prepare for the Impact of HB 8

Article
Weaver can assist Texas community colleges in developing solid data analytics infrastructure to prepare for the transition to new state funding requirements.
2 minute read
August 28, 2023

Texas recently initiated significant changes to the way state funding is distributed to community colleges with the enactment of HB 8, which Texas Governor Abbott signed into law on June 6, 2023. State funding will now be tied more directly to student graduation rates and other outcomes. General revenue for community colleges will vary based on student population, operating activities, transfer relationships and other factors.

Change to New State Funding Formulas

Texas community college are funded primarily from three main sources:

In an effort to increase graduation rates and other performance measures, HB 8 increased state funding while also making significant changes to the way state funding is distributed to community colleges through funding formulas.

State funding will be distributed through two different allotments:

Basic Allotment. Based on student attendance.

Performance Allotment. Based on the number of students who:

Preparing for the Transition

HB 8 will require community colleges to transition to new reporting metrics in order to meet the requirements of these new funding formulas.

To make the most of this transition, community colleges will need to have in place a solid analytics infrastructure. Valuable analytics will include:

Much of this data is available in current systems, but it will need to be aggregated and analyzed to project the financial impact of these new metrics.

Additionally, community colleges will need to ensure that their IT systems can produce accurate information to support the new state reporting requirements.

Weaver offers data analytics and IT support services for community colleges to support this transition. Contact us for information.

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