TACC Update @ Annual TACCBO Conference

Charlie Oberrender, Steven Johnson & Don Hudson

Texas Association of Community Colleges

June 19, 2015

Texas Community College Cooperative Purchasing

Network (TCCCPN)

Charlie Oberrender, Director of Cooperative Purchasing 281-610-8914

coberrender@tacc.org http://www.tacc.org/pages/purchasing-network

•  The State Budget and Community Colleges

•  Legislation

•  The Road Ahead

•  Questions

Update: 84th Session

The State Budget

Contact Hours & Student Success Points

June 1January 13 February March April May

initial

Marchupdate

April 30update

2016%17'Final 2014%15 %'diff

Student'Success'Points 980,204 929,188 +5.5%

Base'Year'Contact'Hours 282,919,371 292,410,192 @3.2%

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  

(+  $3,963,138  HH)  

 Total   $1,769,860,070   $1,690,955,352   $1,745,647,151  

-­‐  4.5  %  from  2014-­‐15  

-­‐  1.4  %  from  2014-­‐15  

State Budget: Community Colleges

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.

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

 510,000      550,000    

 575,000    

 670,000    

 733,000      700,000      695,000    

 -­‐        

 100,000    

 200,000    

 300,000    

 400,000    

 500,000    

 600,000    

 700,000    

 800,000    

2002-­‐03   2004-­‐05   2006-­‐07   2008-­‐09   2010-­‐11   2012-­‐13   2014-­‐15  

Community  College  Enrollment  

$1.57  $1.50  

$1.61  $1.70   $1.75   $1.74   $1.77   $1.75  

0  

0.5  

1  

1.5  

2  

2002-­‐03   2004-­‐05   2006-­‐07   2008-­‐09   2010-­‐11   2012-­‐13   2014-­‐15   2016-­‐17  

State  Instruc,onal  Appropria,ons  (in  billions)  

State Funding has Remained Flat

The Effect

 $2,313    

 $1,921      $1,981    

 $2,115      $2,028    

 $1,667    

 $1,816      $1,853      $1,978    

 $-­‐        

 $500    

 $1,000    

 $1,500    

 $2,000    

 $2,500    

2002-­‐03   2004-­‐05   2006-­‐07   2008-­‐09   2010-­‐11   2012-­‐13   2014-­‐15   2016-­‐17   TACC  Request  

State  Appropria,ons  per  FTSE  (annual)  

$1,851

Rider 23: New Reporting Requirement Repor,ng  Requirement.    Each  public  community/junior  college  shall  submit  a  report  to  the  LegislaNve  Budget  Board  no  later  than  December  1  of  each  fiscal  year  that  includes  the  following  informaNon:    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  tuiNon  and  fee  revenue  collected  at  each  campus  of  the  public  community/junior  college  district  in  the  prior  fiscal  year  and  the  amount  of  total  tuiNon  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.”

Employee Benefit Petitions

Schedule 3C: Group Health Insurance Data Elements (Public Community/Junior Colleges)

Really Hypothetical Community College (RHCC)

98% HH

Employee Only 40 40 0.98 39.20 Employee & Children 20 20 0.98 19.60 Employee & Spouse 20 20 0.98 19.60 Employee & Family 20 20 0.98 19.60 Eligible, Opt-out - - Eligible, Not Enrolled - -

100 100 98.00

2014-15 2016-17

Example:  4%  decline  in  contact  hour  enrollment  =  2  percent  reducNon  (98%  HH)  

Legislation

Policy & Bills

Community College Priorities •  Baccalaureate Expansion at Community Colleges

-  SB 271 / HB 1384 both died during the Session

-  HB 3348 by Clardy provides for the creation of a pilot project to study the feasibility of a baccalaureate in dental hygiene at

Tyler Junior College

•  Common Course Numbering -  HB 61 by McClendon died in the Senate

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

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.

Local Board Bills HB 2621 – 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

HB 382 – 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.

Policy & Bills

Did Not Pass Undocumented Student In-State Tuition

-  SB 1819

Tax Rate Roll-back Changes -  SB 182

Extension of Telecommunications Discount -  HB 1475

Policy & Bills

The Road Ahead

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

www.tacc.org (look for “Advocacy” tab) •  Legislative Resources Page •  Advocates Network

-  Includes information and links to bills (including text and analysis) -  Join Network for “Monday Morning Message” updates from TACC

TACC Twitter Feed: @texassuccess

Resources

Questions?

Steven Johnson sjohnson@tacc.org

(512) 476-2572

Don Hudson dhudson@tacc.org

(512) 476-2572