1. Current Trends in Texas Higher Education Policy Harrison Keller, Ph.D. Director of Research Texas House of Representatives

2. Setting the Higher Education Agenda State Goals: "Closing the Gaps" by 2015 Participation: increase by 630,000 students Success: increase degrees awarded by 50% Excellence: nationally recognized programs Research: increase federal research funding by 50% State Policy Responses Focus on college readiness, improving high schools Financial aid: need-based, incentives for completion Finance: new resources, tuition flexibility, incentives

3. Somewhat Below Target

4. Somewhat Above Target But Declining

5. Well Below Target

8. Proportion of Net Population Change Attributable to Each Race/Ethnicity Group in Texas for 1980-1990, 1990-2000 and 2000-2005 (Texas State Data Center)

9. Projected Percent of Net Change Attributable to Each Race/Ethnicity Group for 2000-2040* (Texas State Data Center) *Using U.S. Census count for 2000 and Texas State Data Center 1.0 population projection scenario for 2040

10. Projected Percent of Labor Force by Educational Attainment in Texas, 2000 and 2040 (Texas State Data Center)

11. International Comparisons of Completion (NCHEMS) 14 out of 100 students in Texas complete certificates or degrees The state’s completion rate is about 60% of the United Kingdom rate, where 24 out of 100 students complete certificates or degrees.

12. Source: OECD, Education at a Glance 2008 Percent of Adults with College Degrees (Associate and Higher) – Leading OECD Countries, US, Mexico, & Texas (NCHEMS)

13. Can Texas Reach International Competitiveness? (NCHEMS) Current Degree Production Combined with Population Growth and Migration and Improved Performance on the Student Pipeline Measures Pipeline Performance Is Cumulative Degrees Produced 2005-25 with Current Rate of Production Additional Degrees from Population Growth Additional Degrees from Net Migration of College-Educated Residents Reaching Best Performance in High School Graduation Rates by 2025 Reaching Best Performance in College-Going Rates by 2025 Reaching Best Performance in Rates of Degree Production per FTE Student Total Degrees Produced 2005-25 If All of the Above Degrees Needed to Meet Best Performance (55%) Source: 2005 ACS, PUMS

14. Somewhat Above Target

15. Well Below Target

16. Developmental Education Approximately 60% of first-time-in-college community college students, 29% of FTIC university students enroll in at least one developmental education course. From the Texas high school graduating class of 2005, 11% of DAP and 37% of RHSP graduates were not college-ready. Nationally, nearly 4 out of 5 developmental education students had a high school GPA of 3.0 or higher. 89% of Texas students who enrolled in developmental education courses in Fall 2003 never completed a credit-bearing course in mathematics. Of students who completed their developmental education courses, 72% did not achieve college readiness. $227 million appropriated for 2008-2009 biennium in formula funding for developmental education  State appropriations cover roughly one-third of the costs of developmental education courses at community colleges.  THECB proposes additional $30M trusteed for innovative approaches in LAR Sources: THECB, Strong American Schools

17. Policy Responses: Preparation, Alignment HB 1 79(3rd called) $3.9M for '06-'07/ $43M over 5 years  Vertical Teams/HS Curriculum Review  Recommended HS Program (default) 4X4 Core  Early College High Schools/T-STEM academies (pilots)  12 Hours of College Credit available to every HS student  Course Redesign Project (pilot) HB 2237 80(R) $118M for '08-'09  Electronic Course Supports  Summer Bridge Programs  College Preparatory Courses  State Council – oversight and strategic planning HB 2864 80(R) $8M for '08-'09/$16.2M over 5 years  Technology-based supplementary instruction for rural HS students (pilot) SB 1031 80(R) $22.9M for '08-'09/$60M over 5 years  End of Course Exams – integrated college readiness component

18. Policy Responses: IHE Incentive Funding HB 1 80(R) Higher Education Incentive Funding $93M Texas Competitive Knowledge Fund $100M for "the improvement in teaching and educational excellence at public universities"  $20M scholarships for top 10% students  $40M based on three year average graduation rates (with weights for at-risk students and critical fields)  $40M for increases in weighted graduation rates  Additional $40M proposed for community colleges

19. Policy Issues on the Horizon Affordability and Financial Aid  TEOG currently funds 4% of eligible students; TEXAS Grant 50%  Textbook costs Research "Tier 1" Funding Admissions and Access  Top 10 percent automatic admissions Formula Funding  THECB proposes funding on completed contact hours/SCH  Proposed increases of $668M for community colleges and $687M for general academics (with new performance funding elements) Incentive and Performance Funding  Basic problem of small dollars to leverage big change ($100M for a FY is less than 5% of appropriated funds and less than 1.5% of total funding for universities) Implement, Evaluate, Scale Up New Models  Limited attention to alternative delivery models  Traditionally limited attention to program quality may change  Expect more policy discussions about educational productivity

20. Contact Information Harrison Keller Director of Research, Texas House of Representatives Speaker's Office (512) 463-1546 Harrison.Keller@speaker.state.tx.us