Although the focus of House Bill 8 is changing how Texas funds its community colleges, it’s a significant piece of economic legislation.

The measure has passed both chambers of the Legislature and is headed to Gov. Greg Abbott’s desk.

The bill is the product of recommendations made this past year by the Texas Commission on Community College Finance, which was comprised of lawmakers and community college presidents, including Kilgore College President Brenda Kays.

Right now, community colleges receive funding through property taxes, tuition and fees and money from the state.

“While every community college receives a little over $1.3 million for core operations in each two-year budget, the rest of the money it receives from the state is allocated in two ways,” according to The Texas Tribune. “The vast majority of that funding depends on how many hours of instruction students receive, called contact hours. The rest — around 10% — is awarded based on milestones like the number of students who complete their first year of math, earn 15 credit hours or graduate with an associate’s degree.

“But over time, the state’s share has not kept pace with other sources of funding and now accounts for less than 25% of community colleges’ budgets.”

At its core, HB 8 shifts the focus to “student outcomes” with an underlying goal of easing a statewide shortage of labor.

In other words, community colleges have a financial incentive to train students for careers that are in high-demand.

Under the legislation, the state would disperse funding to colleges based on data such credentials awarded in high-demand industries, the number of students who earn 15 credit hours and then transfer to a four-year university or the number of high school students who earn at least 15 credits through a dual-credit program, the Tribune reported, adding that “instead of waiting for lawmakers to allocate a pot of funding each session, schools would be able to look at their data and determine what their funding levels would be.”

Justin Yancy, Texas Business Leadership Council president, said businesses across the state “are struggling to find qualified workers.”

“Now, thanks to the passage of House Bill 8, state leaders can continue to address the skilled workforce shortage, support our businesses, and ensure more Texans can earn self-sustaining wages,” he said in a statement.

Kelly Hall, president and CEO of the Longview Chamber of Commerce, previously voiced support for the recommendations made by the Texas Commission on Community College Finance.

“By 2030, 62 percent of all Texas jobs will require a postsecondary credential — but Texas businesses, including those here in East Texas, are already struggling to find qualified workers,” she said in a statement. “By enacting these proposals to bolster community colleges into law, we can address the skilled workforce shortage, support our businesses, and ensure more Texans have the opportunity to earn a self-sustaining wage.”

Just like high schools across the state and in the Longview area have added programs and classes that teach trades and related skills — allowing students to find a good-paying job immediately after graduation — it’s time for community colleges to adopt a similar mindset.

HB 8 encourages and allows them to do just that.