I have reported earlier that the State of Texas, through the Texas Education Agency (TEA), is implementing a new funding formula for colleges and universities that went into effect this school year. Under this formula, points are awarded for things like completion of developmental classes, passing a regular math course, reaching milestones of 15 and 30 credit hours earned, transfers and completion of degrees and certificates. This formula is used to determine a portion of colleges’ funding, right now about 10%. That number is expected to rise over the years.

Now, the Texas State Technical College system, a state run technical school with 12 locations statewide, has come up with an alternative plan. Beginning with the same premise the state legislature used in establishing its plan, that schools should be judged and paid on the basis of results, TSTC is working with the Texas Higher Education Coordinating Board to develop a system where 100% of their funding will be based on the employment and earnings of its graduates. The school will not receive any funding for a student until after graduation and job placement. Clearly, the college believes this will enhance their funding in the future.

Critics are concerned that, while this returned-value model may work for a technical school, it is not applicable to colleges and universities because their missions and student bodies are different.