Texas colleges face funding adjustment

State funding for Texas colleges may soon have more to do with the number of students who actually finish degree or certification programs and less with enrollment numbers.  

Chairman of the House Higher Education Committee Dan Branch proposed legislation that attempts to shift the focus of Texas colleges and universities to a more results-driven approach.  

Supporters of the bill say improved completion rates may improve the economy.  

Under current Texas law, funding for universities is based on enrollment numbers, with graduation rates and certification completions weighing little in the equation.  

Some say that once students get to college, many are lost in the system without advising or direction, with the assumption that universities care less about preparing students and more about keeping them enrolled.  

"I'm surprised it wasn't looked at sooner.  I don't know of many successful businesses or organizations that don't focus on results," Marcia Adams, a professor with the DCCCD said.

According to the U.S. Department of Education, national trends show that while enrollment rates and the number of students who receive financial aid have increased, completion rates remain stagnant.  

"It's Economics 101.  Individuals, and by default institutions, are going to put more attention and focus on efforts that are going to have the greatest effect," Chase International rate specialist Josh Ferguson said.  "If enrollment numbers are what determine my funding, that's what I'm going to concentrate on.  Although I do see a direct relationship between funding and graduation rates, I don't see one between completion rates and an improved economy."

 Like others, Ferguson believes that the lagging economy is caused by a lack of jobs not a lack of human resources.  

The legislation has been filed with the House Higher Education Committee, but no action has been taken yet.