Performance-Funding Bill Advances in Texas

May 1, 2015

The Texas Senate on Thursday passed a bill that would require public colleges to meet several performance standards in order to increase tuition rates beyond the rate of inflation. Performance-based funding formulas, while controversial, are becoming more popular among state legislatures. The bill in Texas, which now goes to the state House for consideration, likely will draw national attention.

The 11 performance requirements in the proposed legislation include measures of graduation rates, student completion milestones, the number of degrees earned by at-risk students and the institution's administrative costs. 

In 2003 the Texas Legislature ceded its ability to set tuition rates at the state's public institutions. That move was a response in part to deep budget cuts, The Dallas Morning News reported. But tuition has risen quickly since then, said lawmakers who support the bill.

“The cost of college education has skyrocketed to where students are being priced out of higher education altogether or required to take out exorbitant student loans to finance their education,” said State Senator Charles Schwertner, a Republican, according to the Dallas newspaper.

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