HEC outlines governor—s 2025-27 institutional budget: formulas, capital and workforce investments

The Higher Education Coordinating Commission (HEC) briefed the Legislature—s Ways and Means Subcommittee on Education on April 8 on the governor—s 2025-27 budget proposal for public higher education, focusing on institutional operating support, capital needs and workforce investments contained in Senate Bill 5,525.

HEC Executive Director Ben Cannon said the presentation concentrated on the state—s investment in institutions — public universities, community colleges and local workforce boards — and how those dollars flow through the Public University Support Fund and the Community College Support Fund. "It's one of the shorthand ways we refer to colleges and universities," Cannon said, introducing the agency—s budget overview.

The nut graf: The commission told the subcommittee that sustained state funding affects affordability and student outcomes, and that recent changes to distribution formulas shift some funding from enrollment counts to outcomes and student success incentives. HEC officials said that shift is intended to promote degree completion, especially for priority populations, while capital and workforce investments are intended to address deferred maintenance and labor-market needs.

Major budget figures and structure HEC staff described the Community College Support Fund (CCSF) in the governor—s recommended budget as roughly $854,400,000 in general fund for 2025-27 and said the CCSF plus related debt service are the largest single parts of the HEC budget. Debt service for previously approved community college capital projects was listed at about $61,700,000. The Public University Support Fund (PUSF) was described as just over $1 billion in the recommendation, representing about 24.6% of HEC—s total…