Community colleges urge tweaks, not a rollback, after outcomes‑based funding outpaced forecasts

Community college leaders told the House Committee the outcomes‑based finance model adopted in House Bill 8 is producing more credentials than anticipated and is prompting continuation of and adjustments under Senate Bill 17‑86. "House bill 8 was an act of confidence in Texas community colleges," Ray Martinez, president and CEO of the Texas Association of Community Colleges, said in testimony praising community college performance.

Martinez and the THECB asked legislators to preserve the fundamental incentives of HB8 while giving staff time and data to refine forecasting and the credential‑of‑value methodology. Deputy Commissioner Sarah Keaton outlined rule changes intended to improve predictability for FY27: a temporary credential cap limiting fundable credentials per student across categories during any five‑year period, changes to demographic weightings (economically and academically disadvantaged, adult learners), and a shift from a three‑year to a two‑year look‑back for forecasting.

Community college leaders said the model's success means the legislature must consider a supplemental appropriation to fully fund outcomes already earned and protect rural and small colleges that still depend on base‑tier funding. The THECB and TAC also described tri‑agency efforts to coordinate workforce grants and to improve the Texas Workforce Commission's UI wage data for future ROI calculations.