State support for higher education (university and community college) increased by eight percent for the coming biennium, while maintaining institutional tuition flexibility. The TEXAS Grant – the primary state financial aid – now excludes community college students since their institutions wanted 'scholarship' funding through Tuition Equalization Opportunity Grant, which lacks academic qualification. The Legislature expanded TEXAS Grant funding by approximately 15%.

The major news is Tuition Revenue Bonds – state funding for universities to build buildings – did not pass during the Regular Session. This represents the loss of building projects such as:

•$95 million for an engineering education and research center at UT-Austin;

•$75ish million for an engineering and science building at Texas State University San Marcos;

•$45 million for medical education and research building TSU-Round Rock.

We hope the Legislature will be allowed to revisit this issue during a special session.