The Lone Star state continues to shake things up in higher education, most recently weighing a proposal to link outcomes with funding.
The Texas Higher Education Coordinating Board recently floated a performance-based funding model that would prioritize a graduation metric, according to the plan, which states the “focus is on building career-ready proficiency that meets Texas’ workforce needs.”
The funding model would “serve as an additional funding factor rather than a replacement for existing funding formulas.”
The proposal will go before the Texas Legislature when it convenes in January 2027, the Daily Texan reported.
“Under the proposed model, 60% of new funding would be tied to the number of students who earn a ‘credential of value,’ defined as a degree whose long-term earnings exceed its educational costs. Currently, all Texas bachelor’s degrees are credentials of value according to the proposal,” the Texan reported.
“The remaining 40% would go to measures of academic progression and persistence,” the student newspaper reported, adding the board “also recommended additional funding incentives for high-demand fields and historically underserved student populations.”
According to the Texas Tribune, “Universities could receive additional money for graduating economically or academically disadvantaged students, adult learners, or those who returned after leaving college for an extended period of time.”
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