Currently, all state-funded higher education institutes receive money for how many hours each student is in class.
TSTC is looking to receive money for degrees completed.
"When we produce results, we will get paid," said Mike Reeser, TSTC West Texas president.
The school would not receive money until the graduate received a job, which would give the college more incentive to help place its students in the workplace.
While the legislature has shown positive response to this form of funding, nothing has been finalized yet.