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Community Colleges Brace for Local Cuts After Texas Funding Shortchanges Them Millions
State officials prorated incentive payments after colleges beat student-outcome projections, leaving nearly a dozen schools with more than a 15% funding drop, analysts said.
Texas community colleges are bracing for budget cuts as the Texas Higher Education Coordinating Board prorated funding, causing a more than 15% drop in state support for nearly a dozen schools.
House Bill 8 created performance-based incentives three years ago that triggered the shortfall as student outcomes surpassed state projections; dual credit enrollment grew 20% and credential completions rose about 22%.
North Central Texas College Chancellor Brent Wallace faces a $4.5 million shortfall and must freeze positions, while San Jacinto College president Brenda Hellyer warned the cuts will affect student advising.
During a Senate finance committee meeting on Tuesday, lawmakers questioned THECB officials about forecast errors; Andy MacLaurin acknowledged growth exceeded expectations but said forecasting will improve.
Unpredictability threatens stability of positions funded with performance money, leading Alamo Colleges District chancellor Mike Flores to avoid permanent hiring; legislators could address the nearly $90 million gap next session.