NASHVILLE - State lawmakers on Thursday night sent Gov. Phil Bredesen legislation that rewrites Tennessee's higher education funding formula to lift substandard graduation rates at the state's public colleges and universities.
House members voted 93-2 in favor of the bill. Senators, who passed the measure earlier in the day, quickly concurred with changes on a final 31-0 vote.
Sen. Andy Berke, D-Chattanooga, a co-sponsor of the measure, later said the state's "economic future depends on graduating more of our citizens from college. Today we took a step forward to make sure that's a priority for our colleges and universities."
Rep. Gerald McCormick, R-Chattanooga, was one of the two "no" votes in the House. He said he has reservations about lawmakers moving so quickly in handing off funding formula changes to the Tennessee Higher Education Commission.
"We don't know what the funding formula will do, but I suspect it'll lean toward helping Knoxville (University of Tennessee-Knoxville) and (University of) Memphis to the disadvantage of all the other schools," Rep. McCormick said, later noting, "I may be wrong, but we haven't had time to figure it out."
The General Assembly later Thursday night recessed its two-week special session on K-12 and higher education reform until Monday in order to ensure no major mistakes were made in the final, daylong flurry of activity.
A major feature of the higher education bill requires the Higher Education Commission to revamp the funding formula and reward schools that do good jobs of retaining students and, ultimately, getting them to graduate.
Tennessee currently ranks 40th in the nation when it comes to residents completing bachelor's degrees and 45th in terms of associate degree completion, according to Complete College America, a non-profit group whose leaders have advised state officials.
Other bill provisions elevate the role of two-year community colleges and direct officials to develop and implement agreements outlining what course requirements are transferable between two-year and four-year schools.
Senate Government Operations Committee Chairman Bo Watson, R-Hixson, warned colleagues during floor debate that they should take a lesson from 2000 when lawmakers passed legislation requiring the articulation or ready transfer of community college course credits to four-year institutions. It was supposed to be implemented a year later but never was.
"It is incumbent upon us to review and ensure that those agencies charged with the duties designated to them by this body implement the wishes of this General Assembly," the senator said.
Four-year institutions will no longer offer remedial classes to students. Instead, those are now solely the responsibility of two-year colleges such as Chattanooga State.
In order to placate concerns about university students with athletic or academic scholarships who need some remedial work, last-minute provisions permit universities to contract with two-year schools to teach remedial classes on university campuses.
Meanwhile, the House agreed to cut a provision requiring the State Board of Regents study the feasibility of allowing the building dormitories at two-year schools such as Chattanooga State.
The State Board's vice chancellor for administration and facilities development, David Gregory, was vague about what might come next in that arena.
"It's something we've talked about with our board in the past," he said. "We'll continue to have that dialogue."
Some lawmakers question whether the emphasis on student retention and graduation will simply lead to grade "inflation" by schools eager to keep as many students as they can.
Rep. Jon Lundberg, R-Bristol, said that was on his mind when he joined Rep. McCormick in voting no.
"I was just worried that frankly some of the decision we make tonight, 15 or 20 years down the road will lead to grade inflation because we want to get kids through college, out of college now. The motivation might be more to keep the substandard kids in there just to get them out because we want to graduate."
Earlier this week, Stan Jones, president of Complete College America, which is funded by the Bill and Melinda Gates Foundation, said grade inflation should not be an issue if schools set up correct procedures.
"There needs to be exit exams at the end of programs so that won't happen," said Mr. Jones, who has been advising Tennessee officials. "A lot of community colleges do that now."
Following the Senate's initial vote on Thursday morning, Gov. Bredesen said the higher education overhaul as well as the K-12 reforms enacted by lawmakers last week are vitally important.
"I think it's a huge step forward for the entire pipeline of education in the state of Tennessee," he said
At Gov. Bredesen's urging, lawmakers last week acted in the special session to approve laws that change the way the state evaluates teachers, grants them tenure and handles failing schools. It was necessary, he said, for the state to compete for a federal Race to the Top grant that reward states pushing education innovation.
Tennessee is seeking about $500 million.