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A new report, “Improving Funding Efficiencies for Classroom-to-Career Programs in Texas,” by Texas 2036, outlines how a braided funding model — which combines multiple funding sources to support a single program — can support proven career programs in high schools across the state.

Key insights include:

  • Braided Funding Models: Recommendations to combine multiple funding sources into a cohesive framework that enables programs to maximize efficiency and maintain accountability.
  • Rural Schools Innovation Zone Model (RSIZ): The five South Texas school districts that make up the RSIZ are outperforming state averages in College, Career and Military Readiness (CCMR) since the implementation of this innovative approach to improving access to career and technical education. The state could incentivize versions of this model across the state to better support workforce development.
  • State Policy Opportunities: Opportunities exist for lawmakers next year to improve the visibility of funding sources and their allowable uses as well as promote flexibility in the administration of programs that receive state funding.

This report was prepared by Texas 2036 with the generous support of JPMorganChase, which played no role in the report’s writing.​

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Rural Schools Innovation Zone Case Study

The Rural Schools Innovation Zone (RSIZ) is a partnership among five South Texas school districts—Freer ISD, Premont ISD, Brooks County ISD, Agua Dulce ISD, and Benavides ISD—and local higher education institutions. 

This initiative demonstrates how innovative resource allocation and braided funding can transform education outcomes. Through this program, students in these school districts have enhanced opportunities to graduate college- and career-ready by earning college credits, associate degrees, industry-based certifications and certificates while still in high school.

Since the program’s start in 2019, students have already demonstrated widespread gains in academic achievement, including in:

  • Industry-Based Certifications: RSIZ graduates achieved a completion rate in 2022 of 58.4%, far exceeding the state average of 28%. 
  • Dual Credit Graduates: 58.9% of RSIZ students completed dual credit coursework in 2022, compared to the state average of 24%.
rural texas school bus

State Policy Opportunities to Strengthen Classroom-to-Career Pathways

Looking to the future, the report outlines several key policy opportunities for lawmakers to consider next legislative session to maximize the impact of braided funding and ensure students graduate career-ready:

1. Support Strong Governance and Staffing at the Texas Tri-Agency Workforce Initiative:

    • Establish integrated project management tools and processes for shared initiatives.
    • Increase dedicated staffing at the Tri-Agency to improve coordination and program delivery.

2. Enhance Transparency of Funding Sources:

    • Develop a central database of funding sources and allowable uses.
    • Provide public guidance on federal, state and local funding strategies to improve efficiency.

3. Promote Flexibility in Fund Administration:

    • Simplify grant applications and reporting requirements across agencies.
    • Grant state agency leaders authority to waive certain administrative barriers to streamline operations.

4. Provide Legislative Authority for Braided and Blended Funding:

    • Eliminate statutory and regulatory silos that restrict resource sharing.
    • Prioritize performance outcomes over inputs to assess program success.

5. Fund and Scale Proven Programs:

    • Expand models like the Rural Pathway Excellence Partnership (R-PEP) and P-TECH.
    • Invest in start-up grants and incentives for regional collaborations tailored to workforce needs.

These legislative strategies can help ensure a more coordinated, efficient and impactful education-to-workforce pipeline for Texas students.

Classroom-to-Career Program Inventory

The report also features a detailed appendix that outlines the full range of statewide classroom-to-career programs available to Texas students. This comprehensive resource serves as a guide for Texans seeking to leverage existing opportunities. Key programs include:

  • Career and Technical Education (CTE): Programs designed to align education with workforce needs, supported by $3 billion in state funding annually.
  • Dual Credit and Early College High School (ECHS): Pathways enabling high school students to earn college credits and credentials at no cost.
  • Rural Pathway Excellence Partnership (R-PEP): Grants for rural school districts to expand college and career pathways.
  • OnRamps: A University of Texas initiative that allows students to earn college credit and develop college readiness skills.

Jobs and Education for Texans (JET) Grant Program: Funding for high-demand career and technical education programs.

Texas Workforce Commission’s Rider 51

Texas 2036 also produced a summary of the Texas Workforce Commission’s recent report on Rider 51, which includes cross-agency coordination for apprenticeship and work-based learning programs. This report identifies 18 programs available in Texas, supported by 14 funding sources, and provides recommendations to enhance collaboration and streamline funding for workforce initiatives.

Key findings include: 

  • Growth in Participation: Workforce-based learning programs saw a 20% increase in participants from FY 2022 to FY 2023.
  • Funding Diversity: Programs are supported by a mix of federal and state funding, with multiple funding streams combined to maximize impact.

Recommendations for Improvement: Suggestions to create a centralized inventory of grant opportunities, establish a cross-agency funding checklist and develop shared tools for managing grant processes.

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Learn more about Texas Braided Funding

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