Examining the costs of Texas community colleges

Regional Educational Laboratory Southwest partnered with leaders at the Texas Higher Education Coordinating Board to examine the extent to which Texas community colleges receive adequate funding for reaching the desired levels of student outcomes, as measured by success points milestones (students outcomes used to allocate funding to Texas community colleges as part of the state’s performance-based funding system). The study team created an institution-level dataset that includes information on institutional spending, student need factors (such as first-generation college student status, economic disadvantage, and student age), institutional contextual factors (such as enrollment size), and success points milestones (such as earning 30 credit hours or attaining a credential). First, the study conducted a needs analysis, which identified student need factors that may hinder achieving desired outcomes. Next, the study conducted an equity analysis, which examined whether institutional spending is equitable with respect to student need factors and institutional contextual factors. Finally, the study conducted a cost function analysis, which described the relative difference in spending necessary to provide an equal opportunity for students with a given need factor to earn the statewide average level of success points milestones as a student without that need factor. Key findings include: Community colleges with higher proportions of first-generation college students, students who are economically disadvantaged, students who are academically disadvantaged, students older than 24 years, and English learner students tended to earn fewer success points milestones per full-time equivalent student. Community colleges with higher percentages of students who are academically disadvantaged spent less per full-time equivalent student, suggesting the possibility of resource inequities for these students. Community colleges with higher percentages of first-generation college students, students who are economically disadvantaged, students older than 24 years, and English learner students required additional funding to achieve adequate outcomes. Larger differences between projected adequate cost and actual spending were associated with less favorable student outcomes, as measured by the number of success points milestones per full-time equivalent student. Community colleges with higher shares of first-generation college students and lower enrollments tended to have larger differences between projected adequate cost and actual spending. Read the full report at https://ies.ed.gov/ncee/rel/Products/Publication/100875.