The bill, S.B. No. 685, amends Section 130A.101(c) of the Education Code to enhance the criteria for performance tier funding under the public junior college state finance program. The measurable outcomes for performance tier funding now include a more detailed breakdown of student achievements, specifically focusing on the number of credentials awarded, the transfer rates of students who earn at least 15 semester credit hours, and the completion of dual credit or dual enrollment courses. Notably, the bill introduces new categories for transfer institutions, specifying that students may transfer to general academic teaching institutions, private or independent institutions offering four-year degree programs, or accredited postsecondary institutions in other states.

The bill emphasizes the importance of aligning educational outcomes with workforce needs by incorporating additional weight for students who secure employment in high-demand occupations after earning their credentials. This legislative change aims to better equip students for success in the state economy and ensure that junior colleges are recognized for their contributions to student achievement and workforce readiness. The act is set to take effect on September 1, 2025.

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