Impact of Institutional and Student Characteristics on Texas Community Colleges under the State’s Performance Funding Model

The study examined how institutional and student characteristics may influence the earning of student success points by state-supported community colleges under the Texas performance funding system that was fully implemented in the 2016–2017 biennium. Texas has historically funded community colleges based on an enrollment formula; however, the funding system was revised in 2013 by setting aside 10% of the enrollment-based formula funding appropriations to be earned back through a performance funding system based on student success points earned. The quantitative study used a correlation design with three hierarchical multiple regression analyses to examine the relationships between the student outcomes measures for public community colleges and institutional and student characteristics. The data examined were collected by the Texas Higher Education Coordinating Board and made available to the public through an interactive website tool. Findings showed that although several student and institutional characteristics were significant predictors of the total success points earned, when the analysis focused on the change in success points between two sets of three-year averages, none of the student or institutional characteristics were significant predictors. These findings support the design of the Texas performance funding system and suggest that community colleges serving higher proportions of at-risk students, including students who are a minority, low socioeconomic status, part-time, and are age 25 and older, will not be disadvantaged using the system’s methodology of comparing an institution to its own historic performance. The contributions of this study are intended to assist state policymakers who are designing performance funding systems.