TACRAO 2015.pptx - Texas Association of Community Colleges

7/24/15 TACC Legislative Update
@TACRAO
July 17, 2015
Update: 84th Session
•  Context: the 84th Texas Legislature
•  The State Budget and Community Colleges
•  Legislation
•  The Road Ahead
•  Questions
1 7/24/15 Align, Accelerate, Advocate
Context: the 84th
Texas Legislature
2 7/24/15 Legisla0ve Session -­‐ 140 days, every 2 years The 84th session was unique and had its own set of key issues. ✓  Focus on how to provide tax relief ✓  Many new members: Ø  House: 43% in first or second term (24 Frosh/41 Soph) Ø  Senate: 42% in first or second term (8 Frosh/5 Soph) ✓  New Leadership January 13
February
March
April
May
June 1
May
June1
Stats for 84th Legislature House filed 4,207 bills: 6% more than 83rd House passed 818 bills: 12% more than 83rd Governor vetoed 34 House bills Senate filed 2,069 bills: 8% more than 83rd Senate passed 504 bills: 29% less than 83rd Governor vetoed 9 Senate bills January 13
February
March
April
3 7/24/15 The State Budget
TACC Success Funding Model
$1.745'Billion'Instruc3onal'Funds'Appropria3on'(HB'1)
Core
Operations
Student Success
Points
Contact Hour
Funding
$1 million/district
$50 million total
10% (less core)
$169.2 million total
90% (less core)
$1.52 billion total
2.9% 9.7% 87.2% Remaining 0.2% for Hold Harmless 4 7/24/15 Contact Hours & Student Success Points
2016%17'Final
Student'Success'Points
Base'Year'Contact'Hours
2014%15
%'diff
980,204
929,188
+5.5%
282,919,371
292,410,192
@3.2%
April 30
update
March
update
initial
January 13
February
March
April
May
June 1
State Budget: Community Colleges
State Instruc,onal Funding Budget 2014-­‐15 Introduced Base Bill Final Budget 2016-­‐17 Core Opera,ons $50,000,000 $50,000,000 $50,000,000 Student Success Points $172,015,292 $164,095,535 $169,168,401 Contact Hours $1,547,844,778 $1,476,859,817 $1,522,515,612 Total $1,769,860,070 $1,690,955,352 $1,745,647,151 -­‐  4.5 % from 2014-­‐15 -­‐  1.4 % from 2014-­‐15 (+ $3,963,138 HH) 5 7/24/15 State Budget: Community Colleges
• 
Final Decision for community colleges: 3% increase in
contact hour funding and student success points over
initial/introduced bill.
• 
90% / 10% split between contact hours & student success
points was maintained (after core operations).
• 
Conference Committee used modified March update
contact hours and the March update for student success
points.
• 
Conference Committee provided a 90% hold-harmless for
college instructional funding (6 colleges).
State Budget: Community Colleges
• 
Overall instructional appropriation was $24.2 million less
than the 2014-15 appropriation (-1.4%).
• 
The final instructional appropriation was $54.7 million more than
the introduced version of HB 1 (+3.2%).
• 
33 colleges received an instructional appropriation that was less
than the 2014-15 instructional appropriation.
• 
4 colleges received less in the final appropriation for 2016-17 than
the instructional appropriation in the introduced version of HB 1.
• 
9 colleges received their highest state appropriation.
6 7/24/15 State Budget: Community Colleges
• 
Student success points were not funded at a level to
maintain the “compete against yourself” system.
• 
Student success points were funded at $173/point, not $185/point.
• 
43 college districts had an increase in student success points from
the 83rd legislative session.
• 
19 of the 43 colleges received a smaller Student Success Point
appropriation than the institution received in the 2014-15
biennium.
• 
All colleges received less dollars per point.
Community Colleges are Meeting Student Demand
Base Year Contact Hours: 2002-­‐03 to 2016-­‐17 350,000,000 300,000,000 250,000,000 200,000,000 150,000,000 100,000,000 50,000,000 0 2002-­‐03 2004-­‐05 2006-­‐07 2008-­‐09 2010-­‐11 2012-­‐13 2014-­‐15 2016-­‐17 7 7/24/15 State Funding has Remained Flat
State Instruc0onal Appropria0ons ($ in billions) 2 $1.70 $1.75 $1.74 $1.77 $1.75 2010-­‐11 2012-­‐13 2014-­‐15 2016-­‐17 $1.61 $1.57 $1.50 1.5 1 0.5 0 2002-­‐03 2004-­‐05 2006-­‐07 2008-­‐09 The Effect
State Appropria,ons per FTSE (annual $s) $2,500 $2,313 $2,115 $1,921 $2,000 $1,981 $2,028 $1,978 $1,816 $1,851
$1,853 2014-­‐15 2016-­‐17 $1,667 $1,500 $1,000 $500 $-­‐ 2002-­‐03 2004-­‐05 2006-­‐07 2008-­‐09 2010-­‐11 2012-­‐13 TACC Request 8 7/24/15 Rider 23: New Reporting Requirement
Repor,ng Requirement. Each public community/junior college shall submit a report to the Legisla0ve Budget Board no later than December 1 of each fiscal year that includes the following informa0on: a.  The number of contact hours and success points generated by each campus of the public community/junior college district in the prior fiscal year and the amount of formula funding transferred to each campus of the public community/junior college district in the prior fiscal year; and b.  The total tui0on and fee revenue collected at each campus of the public community/junior college district in the prior fiscal year and the amount of total tui0on and fee revenue that each campus transferred to another campus in the prior fiscal year. Employee Benefit Petitions
•  $35.1 million added to group health insurance
•  “Conference Committee approved all college
employee benefit funding petitions.”
•  June 12th LBB Email: “For the benefits petition
process, a stepped hold harmless was adopted
for HEGI, Teacher Retirement System, and
Optional Retirement System benefit
appropriations, where the level of hold harmless
is based on the decline in enrollment at each
school.”
9 7/24/15 Employee Benefit Petitions
Schedule 3C: Group Health Insurance Data Elements (Public Community/Junior Colleges)
Really Hypothetical Community College (RHCC)
Example: 4% decline in contact hour enrollment = 2 percent reduc0on (98% HH) 2014-15
Employee Only
Employee & Children
Employee & Spouse
Employee & Family
Eligible, Opt-out
Eligible, Not Enrolled
40
20
20
20
100
2016-17
40
20
20
20
100
98% HH
0.98
0.98
0.98
0.98
39.20
19.60
19.60
19.60
98.00
Legislation
10 7/24/15 Policy & Bills
Campus Carry – SB 11
-  College CEO allowed to create common sense regulations and rules as to how to implement the carrying of
concealed weapons by license holders on college campuses.
-  Rules cannot generally prohibit (or have the effect of generally prohibiting) the carrying of concealed
weapons on a college campus.
-  College CEO will take into consideration the nature of the student population, safety concerns, and the
uniqueness of the campus.
-  Not later the 90th day after the rules and regulations are created the Board of Trustees must review the
provisions and the board may change/amend them with a vote of at least two-thirds.
-  Takes effect for Community Colleges on August 1, 2017, which will allow college leaders, faculty, and
students time to decide what set of regulations and rules makes the most sense for each college.
-  Any regulations or rules must be published on the college’s Website.
-  By September 1st of each even-numbered year each college must submit a report to the Legislature that
describes the provisions limiting the carrying of concealed weapons and explains the reasons why they have
been established.
Policy & Bills
Baccalaureate Expansion – HB 3348
-  Creates a pilot project to examine the feasibility and effectiveness of a authorizing Tyler Junior College to
offer a baccalaureate in Dental Hygiene.
-  Requires Coordinating Board to create two reports – A Progress Report and Final Report
-  Sunsets in Fall of 2019
Block Scheduling – HB 1583
-  College must create “block schedules” for a total of 5 programs not currently block scheduled from the
areas of CTE, Allied Health, or Nursing.
-  Petition process to be created (by the THECB & Community Colleges) for colleges that would have
difficulty in block scheduling 5 programs.
-  Begins Fall of 2016
-  Sunsets August 2019
Transfer – SB 1189
-  Colleges must create new Multidisciplinary Studies Associate of Arts degree
-  Students complete core curriculum
-  At 30 hours student must meet with an academic advisor to complete degree plan.
11 7/24/15 Policy & Bills
Dual Credit / Early College
HB 18 by Aycock
- 
Removes limits on number of total dual credit hours a student can enroll in high school in each
semester of year, as well as limits on the total number of hours in which a high school student can
enroll.
HB 505 by Rodriguez
- 
Removes limits on number of total dual credit hours a student can enroll in high school, each year
- 
Repeals current subsection 130.008(f) of the Education Code which limits the number of hours a
or semester, and at what grade level.
high school student can take from a community college outside their home college’s service area.
SB 1004 by Bettencourt
- 
Bracketed to Harris county. Effects Houston Community College System, Lee College, Lonestar
- 
These colleges must enter into agreements with each ISD to offer at least one dual credit course.
College System, and San Jacinto College.
High school students within Harris County could choose courses offered at any of the four
community colleges.
Policy & Bills
Boards of Trustees
HB 382 by Canales – South Texas College
-  Requires Board to create and implement a plan to provide instructional services in a specific part of the
college’s taxing district by 2019.
HB 2621 by Raney – Blinn College
-  Adds two new Board Members from Brazos County to Board (selected by County Commissioners Court).
-  These Board members cannot vote on issues related to tax rates or the expenditure of tax proceeds.
-  Sunsets in 2019
Workforce / TWC
SB 1351 by Hinojosa
-  Makes the statutory changes necessary to move the JET program from the Comptroller’s
Office to TWC.
12 7/24/15 Policy & Bills
Service Area Changes
SB 495 by Watson
- 
Makes agreed changes to the service areas of Austin Community College, Central Texas College, and
Victoria College.
TSTC
HB 658 by Zerwas
-  Creates a campus in Fort Bend County.
HB 1051 by Wray
-  Changes designation to a campus of existing Ellis County facility.
Other Bills
HB 699 by Nevarez
-  Requires each institution of higher education to adopt a policy on campus sexual assault and make this
information available to students, faculty, and staff members.
-  Colleges must post this information on the institution's website and require entering freshman or
undergraduate transfer students to attend an orientation on the institution’s campus assault policy.
Policy & Bills
Other Bills
HB 1378 by Flynn
- 
Requires a political subdivision (including community colleges) to compile and report certain debt
information.
- 
Permits a college to submit the financial information to the Comptroller, who would be required to
post the debt obligation information on the Comptroller's website.
HB 1887 by Munoz
-  Establishes the regional center for public safety excellence to develop and provide education and
training for law enforcement personnel in the Rio Grande Valley.
-  Requires South Texas College to administer the regional center in partnership with political
subdivisions and participating school districts in the Rio Grande Valley.
SB 1887 by Taylor
- 
Authorizes the governing board of a community college to appoint one or more school marshals.
SB 1750 by West
-  Requires that at least 20 percent, but not more than 50 percent, of the employment positions
through the Texas college work-study program in an academic year are provided by employers who
are providing employment located off campus.
13 7/24/15 Policy & Bills
Did Not Pass
Common Course Numbering
-  HB 61 by McClendon
Baccalaureate Expansion
-  SB 271 by Ellis / HB 1284 by Davis
Extension of Telecommunications Discount
-  HB 1475 by Aycock
Tax Rate Roll-back Changes
-  SB 182 by Bettencourt
Undocumented Student In-State Tuition
-  SB 1819 by Campbell
The Road Ahead
14 7/24/15 The State Budget & Economy: 85th Session
Money will be Available
• 
$6.4 billion left unspent
• 
$11.1 Economic Stabilization Fund (Rainy Day)
Constraints
•  More than $9 billion less available in revenue
•  Tax relief: Franchise and Property Tax
•  Other approved tax exemptions
•  Public School Finance Ruling
•  Additional state dollars into system?
•  Slowing of State’s Economy
•  Lower price of oil = Lower tax revenue
•  Sales tax: rate of increase is slowing
Questions?
15