Texas community colleges face prorated funding

Texas community colleges say they earned millions under a performance-based funding formula but the state cannot pay the full amounts, so the Texas Higher Education Coordinating Board prorated payouts to stay within the budget. That decision contributes to drops of more than 15% in state funding for nearly a dozen colleges and has led to frozen positions and plans to avoid permanent hires at some systems. Advocates note early gains—dual credit enrollment rose about 20% and credential completions about 22%—but THECB trimmed incentives for high-need students and the total gap for this biennium has not been released.

Prorated performance payments created budget shortfalls for community colleges.