2025 POLICY PRIORITY

SUPPORT POSTSECONDARY ACCESS AND COMPLETION.

The Problem: Texas isn’t Adequately Preparing its Future Workforce

of all graduates end up receiving a postsecondary degree or credential within six years.

chance of earning a self-sustaining wage

for the majority of young adults in Texas.

Despite graduating at a record high rate, 1 in 4 graduates are exiting the K-12 system without any sort of preparation or credential for postsecondary success. Even worse is after graduating, only 36% of all graduates end up receiving a postsecondary degree or credential within six years.42 This leaves the majority of young adults in Texas with only a 12% chance of earning a self-sustaining wage, ranking Texas 36th in the country for postsecondary attainment.43 Additionally, those that do attain a credential are misaligned; for example, just 14% of current bachelor degree earners work in their field of study.44 There is a disconnect between postsecondary readiness and attainment, and between attainment and workforce outcomes.

Why It Matters

High-demand, high-wage jobs require additional preparation beyond high school.

By 2030, 62% of jobs will require some sort of postsecondary credential.45 In response to this workforce need, the Texas Higher Education Coordinating Board created Building a Talent Strong Texas goals and strategies to improve credential of value attainment, reduce student debt, and work more collaboratively within the Tri-Agency.46

Coursework taken in high school is a strong predictor of outcomes.

There is substantial evidence that taking advanced coursework (AP, IB, dual credit) and work-based learning experiences (internships, apprenticeships, etc.) in high school leads to improved postsecondary outcomes, such as higher postsecondary enrollment and enhanced wages. However, access to and participation in such coursework – particularly for Black, Hispanic, and rural students – remains shockingly low across the state. 49 50

Good News: Texas has made significant investments

Texas has made significant investments to improve postsecondary access and completion…

Since 2019, Texas has invested in several programs and initiatives to connect education and workforce:

  • The Tri-Agency Initiative connects TEA, THECB, and the Texas Workforce Commission (TWC). The three agencies are required to meet regularly, set goals, create a “credential library,” and provide data to the public on student education and workforce outcomes.51 
  • The College, Career, and Military Readiness (CCMR) Outcomes Bonus provides funding to districts for graduates who meet CCMR criteria. 
  • The Rural Pathway Excellence Partnerships (R-PEP) allows rural school districts to enter into partnerships with other school districts to create college and career pathways, providing for additional funding for participating districts.52
  • HB 8 (88R) codified recommendations from The Texas Commission on Community College Finance, changing the state’s community college funding formula to be outcomes-based.53

…but barriers still remain

  • Many of the requirements laid forth in the Tri-Agency initiatives have not yet been fulfilled, such as the creation of shared dashboards, website updates, and other outcomes reporting. Failure to create common definitions, poor governance, and leadership turnover have all contributed to a struggling initiative.54 
  • The CCMR Outcomes Bonus is underutilized and over-reliant on non-economically disadvantaged students to generate funding.55 Texas has not invested enough in advising capacity, or the levers which make advising successful (such as timely data and professional development), which is necessary for many of these initiatives to make an impact at the student level.56 57
  • R-PEP is in high demand and is close to exhausting all its available allotment funds, and needs funding for technical assistance.
  • HB 8 (88R) has a few unintended consequences that need to be “cleaned up” this session.58

What To Do In 2025

  • “Clean-up” HB 8 (88R) by allowing the transfer to a private institution of higher education to generate outcomes-based funding. 
  • Increase access to work-based learning opportunities and advanced coursework while students are in high school.
  • Strengthen Tri-Agency collaboration and postsecondary pathways by supporting data modernization initiatives and improved transfer/credit mobility.
  • Increase funding for the Rural Pathway Excellence Partnerships (R-PEP) program and ensure that interested partnerships can access technical assistance funding.

FOOTNOTES

42. Morath, Mike. Testimony to HPE Committee. Texas Education Agency, February 28, 2023.

43. Jumpstarts: High School Pathways that Predict Postsecondary Success. E3 Alliance, 2022.

44. Report on Texas Education and Workforce System. Boston Consulting Group (BCG), January 2021.

45. Washington, Jala. College enrollment down with more Texas jobs to require more education in 10 years. KXAN News, May 10, 2022.

46. 2022-2030 Strategic Plan: Building a Talent Strong Texas. The Texas Higher Education Coordinating Board.

47. Ogut, B., Circi, R., Yee, D. Why Does High School Coursework Matter? The Case for Increasing Exposure to Advanced Courses. American Institutes for Research (AIR), June 2022.

48. Torpey-Saboe, N., Leigh, E., Clayton, D., THE POWER OF WORK-BASED LEARNING. Strada Education Network, March 2022.

49. Hengtgen, K., Biaggi, H. Increasing Access to Advanced Coursework in Texas. The Education Trust, February 2024.

50. Texas Advanced Coursetaking Dashboard. Texas 2036.

51. Tri-Agency Workforce Commission.

52. Rural Pathway Excellence Partnership Program.

53. Texas Commission on Community College Finance Report.

54. Putting Texas to Work: The Texas Tri-Agency. George W. Bush Institute, February 2024.

55. 2021 CCMR Outcomes Bonus Report. Texas Education Agency.

56. State Opportunity Index. Strada Education Foundation., May 2024.  

57. Giani, M., Lippa, A. The State of Postsecondary and Career Advising in Texas: Results of the Texas OnCourse Survey. Texas OnCourse, 2017.

58. Perez, Daniel. Entering its second year, here’s how HB 8 impacts EPCC’s budget, academic programs. El Paso Matters, July 9, 2024.