Higher Education Special Session-John Dunn

State lawmakers return to Capitol Hill with a new focus and a new mission.

They’re hoping to improve the graduation rates at Tennessee’s colleges and universities.

The special session on education continues with a new plan that could mean a major change.

The funding that schools receive could soon be connected to how many students stay in school.

As the second semester begins at Nashville State Community College, there are plenty of students in the seats.

But history shows only about one in ten of them will end up with degrees.

"Lots of room for improvement, they're not as high as they should be. That's a goal I think we all share," says Nashville State Vice President Ellen Weed.

Improving graduation rates at all of Tennessee’s colleges and universities is the new goal on Capitol Hill.

"When you have good graduation rates and the students are out in the workforce it improves the economy, everything works together," says Sen. Jim Tracy, R-Shelbyville.

"We just need to do better, and that's what this week is about," says Rep. Glen Casada, R-Williamson County.

The Governor has a plan to streamline the process by making it easier for community college students to transfer to four year schools.

But the biggest change involves the funding formula for higher education.

"We're interested in economic development. We're interested in college completion and that's where we want the focus to be," says Deputy Gov. John Morgan.

Morgan explains the proposed legislation would reward institutions based on student success, and completion rates.

In the past state funding was decided almost entirely on enrollment.

"What this does is say we're interested not just in how many you get in, but how many you have in the seats at the end of the semester," says Morgan.

"We would do business a little differently," says Dr. Weed.

Enrollment at Nashville State is as high as it's ever been, and they're already dealing with budget cuts. It's why they want to make sure this new funding formula works.

"If it was easy to improve those graduation rates we'd already be doing it. I mean it's going to take some resources, time, some money," says Dr. Weed.

While everyone wants to improve the system, schools want to make sure they’ll have the money to do it.

The graduation rate at Tennessee’s universities is about 45%, but only 12% at community colleges.

The governor’s office hopes lawmakers will approve the reforms for higher education this week.Higher Education Special Session-John Dunn