Written by: Lisa Rosenberg
Published: 11/06/2008

Community College Sector Experiencing Severe Budget Challenges

A survey of members of the National Council of State Directors of Community Colleges indicates that community colleges will likely have midyear reductions in their state appropriations. The survey was begun before the Wall Street collapse of mid-September; those who responded to the survey after that considered the likelihood of reductions to be even higher. The widening fiscal crisis is expected to affect all higher education sectors.

Preliminary findings: Eighteen of 28 states with community-college funding formulae did not fully finance them in 2007-8. Community colleges had the largest one-year drop of all public education sectors, including elementary and secondary schools, in state appropriations from 2006-7 to 2007-8. Community colleges’ 5.2 percent drop compares with a 1.8 percent for flagship universities and 3.7 percent for regional state colleges. Rural community colleges are expected to face the most strain from tight budgets. Cuts will likely have the greatest effect on vocational, occupational, and technical education and fine arts.

The study was conducted by Stephen G. Katsinas, professor of higher education and director of the Education Policy Center at the University of Alabama; and Terrence A. Tollefson, professor in the department of educational leadership and policy analysis at East Tennessee State University. Katsinas told the Chronicle of Higher Education that the economy “is beginning to wipe out the good investments states made in the last few years.”

In addition, the survey indicated that longer-term trends may shape higher education appropriations. Three in five respondents said that chronic state budget deficits will hurt public colleges, and especially community colleges.

Twenty-eight states indicated that tuition increases since 2000 had outstripped increases in state need-based aid. Twenty-one said the percentage of students who graduated with “significant loan debt” increased in recent years.

Respondents in eight states indicated that flagship universities had capped enrollment (often this is because of tight state budgets); those from four states indicated regional public colleges had capped enrollment. Because many students who are squeezed out of public four-year colleges opt for community college, this in turn puts the squeeze on students who would normally attend community college.

Related Links:

Chronicle of Higher Education
http://chronicle.com/weekly/v55/i11/11a00103.htm