Policymakers in Texas want to understand the funding levels necessary for community colleges to meet their promise of providing an affordable and accessible pathway to a postsecondary certificate or degree. Regional Educational Laboratory (REL) Southwest conducted this study to help leaders at the Texas Higher Education Coordinating Board better understand the extent to which Texas community colleges have adequate funding for reaching the desired levels of student success, as measured by success points milestones used in the state’s performance-based funding system.

The study involved three types of analyses: a needs analysis, an equity analysis, and a cost function analysis.

• The needs analysis found that community colleges with higher percentages of first-generation college students, students who are economically disadvantaged, students who are academically disadvantaged, students older than 24 years, and English learner students earn fewer success points milestones per full-time equivalent student.
• The equity analysis found that community colleges with higher percentages of students who are academically disadvantaged spent less per full-time equivalent student, suggesting there may be resource inequities for these students.
• The cost function analysis found that spending was not high enough to cover the cost of providing an equal opportunity for first-generation college students, students who are economically disadvantaged, students older than 24 years, and English learner students to achieve the same level of outcomes as students without these needs.

The findings from this study can inform Texas policymakers’ efforts to distribute funding for community colleges to support equitable opportunities for all students to succeed in college.

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