How Texas’ HB 8 is a Legislative Model for Other States’ Postsecondary Pathways

Reading time: Four minutes

Postsecondary attainment and expanding the nature and types of pathways available to students is top of the agenda in many statehouses across the United States. In June, Texas’ HB 8 was signed into law. The legislation showcases various programs, initiatives, and an updated funding structure for community colleges. During a fireside chat plenary at NCAN’s national conference in Dallas in October, the Bill & Melinda Gates Foundation’s Allan Golston and El Paso Community College President Dr. William Serrata focused on this legislation as a driver of considerable change in the Lone Star State. 

The bill is remarkable not just for its provisions but also for its legislative history. In less than four months after it was filed, HB 8 passed unanimously in both the House and Senate and was signed into law. Four months is an extremely quick timeline for a bill to pass in any state, making it an even bigger deal for a state like Texas. 

Don’t have time to read this 56 page-long bill? Check out the highlights below!

Degree Cost and Return on Investment Transparency (Sec. 7.040)

The Texas Education Agency (TEA) is required to publicize information comparing higher education institutions. The information includes:

• Benefits of four-year and two-year higher education programs, postsecondary technical education, skilled workforce careers, and career education programs
• Value of a certificate program, associate or baccalaureate degree program
• Texas’ future workforce needs
• Annual starting wage information and educational requirements for the top 25 highest demand jobs in the state
• 40 baccalaureate degree programs with the highest average annual wages following graduation
• 20 associate degree or certificate programs with the highest average annual wages following graduation

Financial Aid for Swift Transfer (FAST) (Sec. 28.0095)

The FAST program will allow eligible high school students to enroll in dual credit courses at no cost. To be eligible for the FAST program, a student must have been “educationally disadvantaged” (defined as “eligible to participate in the national free or reduced-price lunch program”) at any time during the four school years preceding the student’s enrollment in the dual credit course.

Colleges and universities participating in the FAST program will receive funding from TEA in the amount totaling the tuition of each course enrolled by an eligible high school student.

“Texas Direct” Associate Degree (Sec. 61.834)

Texas Direct creates degree pathways between two- and four-year higher education institutions. Business administration, criminal justice, political science, social work, or sociology are the current programs associated with Texas Direct. Students in these programs will be able to transfer their courses upon successful completion of the required curriculum. 

Opportunity High School Diploma (Sec. 45. Chapter 130. Subchapter O)

This program provides adult students who are enrolled in a workforce education program at a public junior college the opportunity to earn a high school diploma. The college will award a high school diploma to students enrolled in a competency-based education program that enables them to demonstrate knowledge equivalent to that required to earn a high school diploma.

New Funding Structure (Sec. 130A.056. Local Share. Subchapter C.)

Texas’ previous funding model awarded community colleges based on contact hours (the number of hours academic or technical instruction is scheduled for students) and success points, a form of outcome-based funding. Success points were formerly determined by college readiness, first college-level course, progress to credential, credential awarded, and transfer. This model disadvantaged community colleges serving higher populations of first-generation students, economically or academically disadvantaged students, English language learners, and/or students over the age of 24.

The new model adjusts for these inequities and considers whether a community college serves less than 5,000 full-time students as well as students who are 25 years of age or older, economically disadvantaged, and/or academically disadvantaged. 

While the new funding model is still performance-based, it has been adjusted to better align with local and state workforce needs. See the measurable outcomes considered for performance tier funding below:

• Number of credentials of value awarded (determined by the costs of the credential and associated wages)
• Number of students who earn at least 15 semester credit hours and:
  • Transfer to a four-year college; or
  • Are enrolled in a structured co-enrollment program
• Number of students who complete a sequence of at least 15 semester credit hours for dual credit or dual enrollment courses that apply toward academic or workforce program requirements

According to the Chair of the Texas Commission on Community College Finance (TxCCF), Woody L. Hunt, “Texas’s community colleges enroll and serve almost half of all students pursuing postsecondary education” in the state. HB 8 is a giant step toward more equitably funding community colleges and adequately serving students from various economical and educational backgrounds.

NCAN will continue to highlight legislation from across the country that states might consider adopting or adapting to their own postsecondary pathway needs. We’ll be watching closely to see how the implementation of HB 8 serves Texas’ students as they work toward increasing postsecondary attainment rates. 

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