Creates the council for performance and accountability in higher education.

Creates the office of student financial assistance to administer state and federal financial aid and other education services programs.

Abolishes the higher education coordinating board and transfers the powers, duties, and functions of the board pertaining to: (1) Student financial assistance to the office of student financial assistance;

(2) Adoption of statewide gender equity rules, adoption of minimum college admission standards, program approval, branch campus expansion, the education cost study, and the purchase or lease of major off-campus facilities to the council for performance and accountability in higher education; and

(3) Degree-granting institutions, approval of health sciences and services authorities, and the approval of veterans' programs to the workforce training and education coordinating board.

Directs the office of financial management to produce an assessment every two years of the number and type of higher education and training credentials required to match employer demand for a skilled and educated workforce.