Texas approved a performance-based funding change for community colleges that shifts state payments from enrollment counts to student graduation milestones and transfer outcomes. Under Texas House Bill 8, signed by Gov. Greg Abbott in September, 50 community college districts serving about 775,000 students will receive $3,500 per student for specific completion and transfer benchmarks. The covered outcomes include dual-credit completion tied to high school students, completion of an associate’s degree, and transfers by two-year college graduates into in-state four-year institutions. The policy is designed to redirect institutional action toward advising and student support that improves persistence through graduation and subsequent enrollment in universities. The article argues that colleges will need to realign internal systems and staffing—especially around quality advising—to maximize the new funding stream. Because data on results will not be available for several years, institutions face planning pressure now, as they build advising pathways and course scheduling strategies aligned to the new accountability metrics.
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