Texas proposes tying university funding to student persistence and job prospects

The Texas Legislature will consider a new funding formula for public universities that emphasizes student persistence and career-ready credentials when lawmakers convene in January, according to El Paso Matters.

The Texas Higher Education Coordinating Board delivered its University Performance Based Funding Report to the Legislature in July. The proposal recommends that 60 percent of state funding be allocated based on degrees the board calls "credentials of value"—degrees that allow graduates to earn enough within 10 years to repay their college costs and surpass the earnings of a typical high school graduate. The remaining 40 percent would be tied to student persistence and progression milestones, such as completing 30, 60, or 90 credit hours. A bachelor's degree typically requires 120 credit hours.

John Wiebe, provost and vice president for Academic Affairs at the University of Texas at El Paso, served on the committee that developed the proposal. He described student persistence as one of the plan's most unique and important aspects, noting it would mark the first time the Legislature has used persistence as a funding metric. "I think it's important to see the state take notice of perseverance and start to promote its importance and focus funding on the persistence of students," Wiebe said.

The committee recommended that the new model supplement—rather than replace—the current funding system based on enrollment and semester credit hours taught. The recommendation aims to avoid major financial disruption to institutions.

Wiebe, who has taught psychology at UTEP since 1998 and whose research has examined student dropout rates and re-enrollment incentives, said the university is well-positioned for a performance-based formula. UTEP tracks student progress through degree programs and offers support services including tutoring, advising, financial aid, emergency loans, technology loans, healthcare services, childcare, and a food pantry.

Wiebe acknowledged initial concerns about whether representatives from diverse institutions could reach consensus. He said the committee engaged in "healthy debate" but successfully collaborated on the framework.

State Rep. Mary Gonzalez, vice chair of the House Appropriations Committee representing District 75 in El Paso County, said the Legislature would review the proposal carefully. She emphasized that university funding must remain stable while student success becomes a core component of any funding plan. "It was too early to consider how much" the Legislature would ultimately allocate under such a model, according to El Paso Matters.