Public Community College State Finance Program
| Model Bill Info | |
|---|---|
| Bill Title | Public Community College State Finance Program |
| Date Introduced | July 28, 2023 |
| Date Finalized | August 28, 2023 |
| Type | Model Policy |
| Status | Final |
| Task Forces | Tax and Fiscal Policy, Education and Workforce Development |
| Keywords | Higher education |
Public Community College State Finance Program
Section 1. Definitions
(1) “Program” means the public community college state finance program established by this Act.
Section 2. Program Components; Administration; Required Reporting
(1) The program consists of:
(a) A base tier of state and local funding determined in accordance with section 5 that ensures each public community college has access to a defined level of base funding for instruction and operations; and
(b) A performance tier of state funding determined in accordance with section 6 that constitutes the majority of state funding and is distributed based on measurable outcomes aligned with regional and state workforce needs.
(2) The [insert state higher education authority] may adopt rules, require reporting, and take other actions consistent with existing law and this Act as necessary to implement and administer the program.
(3) The [insert state higher education authority] by rule shall require each public community college to report to the [insert state higher education authority] any data necessary to:
(a) Calculate funding under this Act;
(b) Provide timely data and analyses to inform management decisions by the governing body of each public community college;
(c) Administer or evaluate the effectiveness of the program; or
(d) Audit the program.
Section 3. Authority to Resolve Data Reporting Errors and Unintended Consequences from Funding Formulas
(a) The [insert head of state higher education authority] may review the accuracy of data reported to the [insert state higher education authority] by a public community college.
(b) The [insert head of state higher education authority] may adjust:
a. The distribution of funding under this Act for a state fiscal year as necessary to correct errors in data reporting identified through the [insert head of state higher education authority] review under subsection (a); and
b. A public community college’s funding under this Act if the funding formulas used to determine the public community college’s entitlement would result in an unanticipated loss or gain for the public community college that would have a substantial negative impact on the public community college’s operations.
(c) Before making an adjustment under this section, the [insert head of state higher education authority] must request approval from:
a. The Speaker of the House, or his or designee;
b. The President Pro Tempore of the Senate, or his or her designee; and
c. The Governor, or his or her designee.
(d) A request made under subsection (c) to make an adjustment is considered approved unless one of the individuals identified in subsection (c)a-c issues a written disapproval within 60 business days after the date on which the request is received.
(e) If the [insert head of state higher education authority] makes an adjustment under subsection (b), the [insert head of state higher education authority] shall provide to the legislature an explanation regarding the changes necessary to resolve the data reporting errors or the unintended consequences, as applicable.
Section 4. Recovery of Overallocated Funds
(a) If a public community college has received an overallocation of state funds, the [insert state higher education authority] shall recover from the public community college an amount equal to the overallocation by withholding from subsequent allocations of state funds for the current or subsequent academic year or by requesting and obtaining a refund from the public community college.
(b) Notwithstanding Subsection (a), the [insert state higher education authority] may recover an overallocation of state funds over a period not to exceed the subsequent five academic years if the [insert head of state higher education authority] determines that the overallocation was the result of exceptional circumstances reasonably caused by this Act.
(c) If a public community college fails to comply with a request for a refund under subsection (a), the [insert state higher education authority] shall report to the [insert state treasurer/comptroller] that the amount constitutes a debt that may be recovered by the Attorney General pursuant to [insert cross-sectional reference]. The public community college’s governmental immunity is waived to the extent necessary to collect the debt owed.
(d) Subject to subsection (e), the [insert state higher education authority] may review a public community college as necessary to determine if the public community college qualifies for each amount received by the public community college under this Act. If the [insert state higher education authority] determines that a public community college received an amount to which the public community college was not entitled, the [insert state higher education authority] may establish a corrective action plan or withhold the applicable amount of funding from the public community college.
(e) The [insert state higher education authority] may not review public community college expenditures that occurred seven or more years before the review.
Section 5. State Funding: Base Tier
(a) The amount of base tier state funding to which a public community college is entitled for instruction and operations under this Act for a state fiscal year is an amount equal to the amount, if any, by which the public community college’s guaranteed instruction and operations funding, as determined under subsection (b), exceeds the public community college’s local share of base tier funding, as determined under subsection (i).
(b) The amount of a public community college’s guaranteed instruction and operations funding for a state fiscal year is equal to the sum of:
a. The product of:
i. The public community college’s basic allotment under subsection (c); and
ii. The number of weighted full-time equivalent students enrolled at the public community college determined in accordance with subsection (d); and
b. The public community college’s contact hour funding under [insert cross-sectional reference].
(c) The basic allotment for a public community college for a state fiscal year is an amount per weighted full-time equivalent student set by legislative appropriation.
(d) The [insert state higher education authority] by rule shall establish student weights for purposes of this Act that reflect the higher cost of educating certain students. The student weights must be established in a manner that results in appropriate funding to a public community college for the education of a student enrolled in an eligible credit or non-credit program who is:
a. 25 years of age or older;
b. Economically disadvantaged, as defined by [insert state higher education authority] rule; or
c. Academically disadvantaged, as defined by [insert state higher education authority] rule.
(e) Subject to subsection (f), the number of weighted full-time equivalent students enrolled at a public community college for purposes of this Act is equal to the sum of:
a. The number of full-time equivalent students enrolled in the public community college; and
b. The sum of the weights assigned to students enrolled in the public community college.
(f) The [insert state higher education authority] by rule shall establish an equitable adjustment to the number of weighted full-time equivalent students determined under this section for each public community college with a total enrollment of fewer than [insert number] full-time equivalent students.
(g) Not later than November 1 of each year, a public community college that receives an adjustment under subsection (f) shall submit to the [insert head of state higher education authority] a report on the public community college’s efforts to reduce costs and improve operational efficiency.
(h) The legislature shall set by appropriation the amount of funding to be provided to a public community college per contact hour. The amount of funding per contact hour must be weighted by discipline to reflect the cost of providing the applicable course, and the [insert state higher education authority] shall determine the total amount of contact hour funding to which each public community college is entitled under this section.
(i) A public community college’s local share of base tier funding is an amount equal to the sum of:
a. Local revenues collected for the purpose of funding a public community college; and
b. An amount of tuition and fees assessed to each full-time equivalent student enrolled in the public community college equal to the statewide average amount of tuition and fees assessed by public community colleges to a full-time equivalent student, determined by [insert state higher education authority] rule.
Section 6. State Funding: Performance tier
(a) The public community college is entitled to performance tier funding for a state fiscal year in an amount equal to the sum of the amounts determined under subsection (b) for each measurable outcome described by subsection (c).
(b) The amount of performance tier funding for each measurable outcome described by subsection (c) is equal to the product of:
a. The sum of:
i. The number of times that outcome was achieved by the public community colelge, determined as provided by [insert state higher education authority] rule; and
ii. For an outcome described by subsection (c)(i) or (ii), the sum of the applicable student weights established by [insert state higher education authority] rule for the students who achieved the outcome at the public community college; and
b. The amount set by legislative appropriation.
c. The measurable outcomes considered for purposes of performance tier funding are:
i. The number of credentials of value awarded, as determined by the [insert state higher education authority] based on analyses of wages and costs associated with the credential, including degrees, certificates, and other credentials from credit and non-credit programs that equip students for continued learning and greater earnings in the state economy, with an additional weight for placement of students who earn that credential in a high-demand occupation, as defined by [insert state higher education authority] rule, or an appropriate proxy determined by the [insert state higher education authority] based on available data;
ii. The number of students who earn at least 15 semester credit hours or the equivalent at the public community college and:
Subsequently transfer to a public 4-year institution of higher education; or Are enrolled in a structured co-enrollment program, as authorized by [insert state higher education authority] rule; and iii. The number of students who complete a sequence of at least 15 semester credit hours or the equivalent for dual credit or dual enrollment courses, as defined by [insert state higher education authority] rule, that apply toward academic or workforce program requirements at the postsecondary level.
