THECB delves into 'credentials of value' methodology as community college funding shifts

A Texas Higher Education Coordinating Board panel on Jan. 23 gave board members a detailed explanation of the agency's credentials-of-value methodology, the metric the state is using to judge whether postsecondary awards produce an adequate return to students and — under House Bill 8 — whether community colleges receive state funding for particular credentials.

David Troutman, deputy commissioner for academic affairs, and Sarah Keaton, deputy commissioner for administration and operations, led the discussion, which examined the methodology's data inputs, a student-level example and the questions the agency will keep studying, including regional and demographic differences in outcomes.

Troutman said the methodology’s core is straightforward. “The nucleus of our methodology is based on earnings. Full stop,” he told the board, adding that the analysis then places those earnings in context by measuring student investment and foregone wages.

Keaton walked the board through a hypothetical student, “Maria,” to show how the calculation works. The agency counts Maria’s direct costs (tuition, fees, books and room and board), her opportunity cost (foregone wages while enrolled) and her…