FY23 Strategic Plan and Budget Report

APPROVED 08/18/2022
FORTIFY
APPROPRIATION
FUNDING SOURCES
TSTC’s plans are built primarily on the cause
and effect relationship of performance-based
funding. However, those plans are at risk
due to uncertainty in the reliability of TSTC’s
appropriated commission rate (the funding of
TSTC’s returned-value, performance-based,
formula). Variables contributing to uncertainty
include expansion and contraction of the overall
state budget, and political pressure to prioritize
other initiatives over TSTC’s returned-value
formula, breaking the link between performance
and funding.
These are likely risks that increase if those
with influence are uninformed about TSTC’s
plans and contributions. People don’t value
what they don’t understand. So TSTC will build
on campaign momentum to constantly create
awareness about (1) the linkage of Texas
prosperity to its ability to fill the skills gaps; (2)
TSTC’s mission to fill those most lucrative gaps;
(3) TSTC’s mission-discipline, execution, and
the resulting impact on the state; and (4) the
constraints preventing even more production
from TSTC.
Fortified appropriations would include
consistent funding of TSTC’s returned-value
formula at the 36% commission rate. The full
impact is not certain since the wages of former
students to be counted in future biennia have
yet to be earned or reported. TSTC estimates
the returned-value appropriation could
potentially increase (over current levels) $25
million and $84 million in the 88th and 89th
legislative sessions, respectively.
Other funding fortifying moves include
correcting facilities capital funding disparities
and facilities capital appropriation requests to
respond to specific market needs.
STRATEGIC PLAN & BUDGET REPORT
15