Joint Budget HearingTexas Public Community Colleges

Presentation to:

Governor’s Office of Budget, Planning and PolicyLegislative Budget Board

Texas Association of Community CollegesOctober 5, 2004

Introduction

• Community colleges are critical to guaranteeing the future success of the state’s economy.

• Job and economic growth in Texas depends on the ability to deliver a trained and educated workforce.

• Texas can only be as successful as its community colleges.

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• Enroll over a million students each year• Over 270,000 students enroll in workforce

education courses to enhance job skills• Hospitals and medical facilities depend on

community colleges• Many of our students are the first persons in their

family to attend college• Community colleges are addressing the teacher

shortage• Community college students represent the diversity

of Texas

Committed to Our Mission andClosing the Gaps

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Community Colleges are the Largest Sector of Higher Education

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Unprecedented Growth atCommunity Colleges

Percent of Contact Hour Growth From Previous Biennium4

*

Current Fiscal Crisis

• At a time when colleges are asked to do more, the state is paying less.

• 52 percent of the funding formula was funded for the current biennium.

• The current appropriation is almost 17 percent less. than community colleges received in the previous biennium.

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• The difference between the 2002-03 and the 2004-05 appropriation represents a 16.6 percent decrease.

• The 2004-05 funding amount is the same as the 1994-95 biennium.

Appropriation Per Contact Hour*

* Actual dollars, not adjusted for inflation

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When inflation is taken into account,the appropriation per contact hour drops to $4.86

for FY 2004-2005, a 21.4% decrease from FY 2002-2003.

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The cost of attending a community college has shifted fromthe state to the student and local taxpayer.

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Appropriation, Tuition/Fee,Property Tax Comparison

Percent Change of CC Revenue/Contact Hour: 1994-20039

Legislative Priorities

• Appropriations. The 79th Legislature must restore funding to community and technical colleges. TACC requests an additional $357.9 million to the community and technical college formula for FY 2006-07.

• Employee Benefits. The 79th Legislature must fully fund employee benefits for community and technical college faculty and staff.

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Employee Benefits

• Out of pocket expenses for health insurance increased an average of $900 annually for faculty and staff.

• The Employees Retirement System recently increased health insurance premiums 5 percent for family and dependent coverage.

• TACC does not support any proposal which would define the state’s responsibility as a portion of the state’s contribution (currently 31 percent).

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• Restore 5%• Additional $357.9 million• STARLINK to Dallas CCD• VCT to Austin CC• Support new campus requests from

community college districts

Exceptional Item Requests

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Other Funding Issues

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• Fully fund dramatic enrollment growth

• Restore the funding floor to the FY 2002-03 level for small/rural colleges (4.63 million for the biennium)

• Hold Harmless (5 percent)• Skills Development Fund - $50 million• High Priority Program Development Fund - $20 million• Fund existing special items• Increase funding of Texas Grant II

• Separate funds for nursing growth and new campus• Restore threshold to 5% and 10% levels

TEXAS ASSOCIATION OF COMMUNITY COLLEGES1101 Trinity, Suite 200, Austin, Texas 78701; 512/476-2572; Fax: 512/476-0262; Website: www.tacc.org

OFFICERS AND EXECUTIVE COMMITTEE: 2004-05

David E. Daniel, Ed.D., PresidentMidland College

John E. Pickelman, Ph.D., President-ElectNorth Harris Montgomery Community College

Millicent M. Valek, Ph.D., Secretary-TreasurerBrazosport College

William R. Crowe, Ph.D., Past PresidentTyler Junior College

Ramon Dovalina, Ph.D.Laredo Community College, At-Large Member

Martha Ellis, Ph.D.Lee College, Southeast Texas Region

Charles Florio, Ph.D.Northeast Texas Community College, East Texas Region

Richard Sanchez, Ed.D.Navarro College, Central Texas Region

Alan Scheibmeir, Ph.D.Grayson County College, North Texas Region

Ismael Sosa, Jr., Ph.D.Southwest Texas Junior College, South Texas Region

Cheryl T. Sparks, Ph.D.Howard College, West Texas Region

Steve Thomas, Ph.D.Vernon College, At-Large Member

Don Voelter, Ph.D.Blinn College, At-Large Member

TACC StaffReynaldo R. Garcia, Ph.D., Executive Director

Don Hudson, Associate DirectorRobin Parker, Administrative Assistant

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EXECUTIVE COMMITTEE