Michelle Babbs is the type of nontraditional student McLennan Community College officials had in mind three years ago when they expanded their investment in career-focused degrees and credentials.
Finding time for college seemed impossible for the single mother of four, who worked full-time at her family’s daycare and part-time at Amazon. Then an MCC apprenticeship program allowed her to earn credits toward an early childhood education degree while on the job.
“Without this program, I don't think I would have ever been able to go back to school,” said Babbs, who earned her associate degree this spring. “Well, I'm not going to say never, … but this program – the apprenticeship – helped pave the way for me. It opened that door again to where I thought all was lost.”
But now MCC officials say the state funding model that prompted them to invest in student career pathways fell short, leaving them to make up the $3.1 million they had expected by hiking local taxes in the coming budget year.
House Bill 8, passed in 2023, based community college funding on student outcomes rather than mere enrollment. MCC and other systems outperformed expectations, and the two-year appropriation the Legislature made in 2025 for the program was insufficient to cover the promised funding.
Texas Higher Education Coordinating Board officials prorated funding, cutting about 15% of state funding for nearly a dozen colleges, The Texas Tribune reported in June.
“I don't think they could fully anticipate the success that community colleges were having across the state,” said Mark Harmsen, MCC vice president of finance and administration.
“And unfortunately for us, it did impact us. It actually impacted all the community colleges this particular fiscal year. … So once we had identified that, we were in the middle of the budget process.”
MCC was among the colleges hardest-hit by the shortfall, state Rep. Pat Curry, R-Waco, said Tuesday.
“They added students. They added teachers. They added all the expense without getting the money that they were expecting from it,” he said. “Honestly, several of the colleges did. They did grow, and they've been very successful, and again they're being punished for being successful.”
MCC increased its emphasis on credentials and short-term programs to align with the new funding formula, and officials intend to continue. But they had to reevaluate the budget after learning of the state shortfall in June.
MCC trustees passed a tax rate of 14.07 cents per $100 property valuation on Aug. 25, a rate hike of about one penny that is expected to cover the $3.1 million gap. The owner of an average McLennan County home valued at $223,819 will see college taxes increase by $19.56 in the coming year.
Still, college administrators turned down about $2.5 million in new spending requests, such as for software and subscriptions, Harmsen said.
“We specifically focused on trying to avoid making reductions or cuts in areas that would support student success,” Harmsen said.
MCC reports 20% growth since last year in the number of students earning associate degrees in applied sciences and arts and a 25% increase in certificates that required at least 42 hours.
Community colleges across the state have seen similar improvements in outcomes in the past few years, The Texas Tribune reported.
Curry said the outcome-based system needs to be fixed and reevaluated due to the impact it's having on colleges like MCC. Lawmakers discussed the formula in interim hearings this summer, and Curry said he will “fight like hell” to fix it the session that begins in January.
“When you put a program in place that rewards success coming out of school and growth of a school, and they lose money significantly – lose money doing it – that could not have been the intention of it,” Curry said.
Model vs. reality
After community college funding changed three years ago, administrators at MCC and other colleges adjusted programs to qualify for more money.
Colleges earn funding based on student transfer success, dual-credit hours earned and credentials of value.
“The funding model has a ways to go before it's matured,” MCC president Johnette McKown said in an Aug. 19 interview. McKown said MCC and other colleges “all overperformed, and we performed so well that the state hadn't appropriated enough.”
MCC officials will ask for supplemental funding in the spring from the Texas Higher Education Coordinating Board, McKown said.
However, Curry said it is unlikely the college will see any additional funding until September 2027.
One purpose of the funding formula change was to encourage more training to meet workforce needs by rewarding student outcomes. HB 8 invested $683 million in community colleges and received near unanimous support, according to The Texas Tribune.
Waco government and industry leaders have pointed to a “skills gap,” with employers struggling to find qualified workers with the education and training needed to move up to better-paying jobs.
“It's important that we make sure that our students are able to have that self-sustaining wage because Waco and McLennan County do have a high poverty rate,” said Laura Wichman, MCC vice president of strategic planning and enrollment.
MCC saw 2,179 students graduate last school year. Nearly two-thirds earned associate degrees and more than half earned a credential, occupational skill award, license or certification.
Of those students who graduated:
- 40% come from economically disadvantaged backgrounds.
- 40% are adult learners.
- 16% are first generation.
Wichman said MCC emphasizes “stackable” credentials, meaning students can earn industry-recognized credentials while pursuing an associate degree.
MCC launched certificate programs for dental assistants, fiber optics workers, medical administration assistants and pharmacy technicians. The board approved a fire protection associate degree last month.
Finding her niche
For Babbs, the path upward came from an apprenticeship program through MCC and Texas Workforce Solutions that allowed her to earn a degree in childhood development and a federal license as a childcare provider.
Babbs has had real-world experience working at Babes N Tots, her family’s business. But the college classes helped her understand brain development, learn strategies and connect her experience to research.
“This job, it’s a thankless job,” Babbs said. “But for me, I'm here because I love these babies. I love what I do. I feel like this is my purpose.”
Babbs said seeing her daughters succeed in school encouraged her to continue her education. Now she’s working on a bachelor’s degree.
“If y'all are going to school (and) doing your part, I'm going too,” Babbs said. “I want … to be that role model for them to show them that all things are possible.”
Stairway to success
Allison Kono exemplifies the idea of “stacking” degrees and credentials to build her career.
She got her certification as an emergency medical technician at MCC, then started her associate degree in paramedicine while working on an ambulance. The MCC program allowed her to work shifts at an emergency room, where she was able to shadow a nurse and administer IVs.
“I got to see ER doctors, cardiologists,” she said. “I got to watch surgeries, and being able to do hands-on skills while also growing my confidence as a healthcare provider, and stepping into that paramedical has really helped me realize that this is the field I want to be in.”
She was dually enrolled at Baylor University during that time as well, working on a bachelor’s in neuroscience.
She graduated from Baylor in 2021 and received her associate degree from MCC last month. Now she is headed to medical school in Denver.
Nursing ambitions
Likewise, Emily Torres took an unconventional route to advance her nursing career.
She enrolled at MCC at 23 after years of struggling with medical and personal setbacks.
She balanced night classes and work to become a certified nursing assistant, with financial help from Prosper Waco’s UpSkill Waco program.
Torres’ MCC professor helped her get an interview with Ascension St. Catherine nursing home, where she now works.
“I love what I do,” Torres said. “I love taking care of the elderly, and I love where I'm at right now.”
Torres is working towards her pharmacy tech degree while working 12-hour days, with the goal of becoming a registered nurse.
“I’m working five days, four days straight … and I still manage to squeeze in some studying time late at night,” Torres said. “It's all worth it at the end when I have that RN next to my name.”
Disclosure: McLennan Community College has been a financial supporter of The Waco Bridge within the past five years. The Waco Bridge is a nonprofit, nonpartisan news organization that is funded in part by donations from members, foundations and corporate sponsors. Financial supporters play no role in our journalism.
This article first appeared on The Waco Bridge.
