McALLEN, Texas — South Texas College Board of Trustees Chairman Paul R. Rodriguez praised the college's faculty and staff for making STC a statewide benchmark in higher education, while defending the board's recent decision to maintain its property tax rate during STC’s Fall Convocation at the McAllen Convention Center.
Addressing a packed venue, Rodriguez shared insights from the annual Community College Association of Texas Trustees conference in Baytown, where college leaders from 35 to 50 institutions gathered to discuss the transformative impact of House Bill 8. Passed by the 88th Texas Legislature in 2023, HB 8 overhauled community college financing by replacing traditional, attendance-based models with outcomes-based performance funding.
“House Bill 8 changed the financial fundamentals of higher ed in more ways than I could think of,” Rodriguez told the audience, noting that former STC trustee and current state Rep. Oscar Longoria helped formulate the legislation. “It was based on outcomes, not just how many hours someone fulfilled.”
Under the HB 8 framework, state funding allocations incentivize institutions for specific student milestones, including credentials in high-demand fields, successful transfers to four-year universities, dual-credit completion for high school students, and credential gains among adult learners and economically or academically disadvantaged students.
Rodriguez highlighted that while community colleges across Texas have seen overwhelming success under the new system, high performance statewide has led to state-level funding allocation shortfalls.
“Part of the problem is that we did so well in community colleges that we’re short,” Rodriguez explained. “They didn't have the budget for it. So hopefully, in this coming legislature, that will be rectified, and hopefully, more funds will be made available in the future.”
Despite state funding gaps, Rodriguez pointed out that STC’s long-standing focus on dual credit, workforce credentials, and degree pathways served as a blueprint for the legislation.
“All those things that we talked about... are a checklist that STC has been doing for a long time,” Rodriguez said. “The reality is, other community colleges in the state of Texas have looked to us — the youngest community college and the one deep in South Texas — for guidance and counseling.”
Turning to administrative actions, Rodriguez lauded the board’s recent vote to maintain the institution's overall property tax rate at $0.1620 per $100 of taxable valuation for fiscal year 2027.
During a special meeting on Sept. 23, the STC Board of Trustees adopted a rate structure that keeps the Maintenance and Operations (M&O) tax rate at $0.14 per $100 — the maximum voter-approved rate — and the Interest and Sinking (I&S) debt service rate at $0.0220 per $100.
While average homestead taxable values across Hidalgo and Starr counties ($205,461) will see a modest annual increase of $3.30, the rate structure will allow STC to aggressively retire bond debt early, generating approximately $1.3 million in long-term taxpayer savings.
The vote comes as STC anticipates a $6.5 million state allocation shortfall tied to completion performance metrics under HB 8 rules.
“Our board showed a lot of courage in making some difficult decisions, specifically connected to our tax rate,” Rodriguez said. “We know that today people are not enjoying the concept of paying more in taxes... but the reality is, we need that revenue. Today costs have gone up.”
STC Vice President of Finance and Administrative Services Maria Del Paz noted that excess revenue collected under the rate structure will directly target the college’s total debt portfolio.
“Prudent financial responsibility requires the college to analyze the overall interest and sinking tax liability that will positively affect our taxpayers in short and long-term,” Del Paz stated.
According to a recent economic impact study, STC contributes $693.5 million annually in added income to the regional economy. For every $1 a student invests in STC, they gain $8.70 in lifetime earnings, while taxpayers gain $1.10 in added tax revenue and public sector savings.
Rodriguez closed his remarks by thanking the college’s total operational workforce — from faculty and administrators to bus drivers and facilities staff.
“What you’re doing has not only served the needs of our community and our students, but it’s had an impact on the state and now ultimately for our nation,” Rodriguez said. “You have a lot to be proud of.”
