Financing Community Colleges

"It is by far the best study that I know of on community colleges. It comes at a critical time in the history of these institutions. It is carefully reasoned, beautifully written, and sound in its conclusions."—Howard R. Bowen; Professor of Economics and Education, Claremont Graduate School "...and excellent piece of work....Its quality is high and the book is significant. Its significance stems from the fact that it deals with an area of higher education not yet explored by other writings."—Earl F. Cheit; Dean, Schools of Business Administration; University of California, Berkeley "...a great job of describing and clarifying the issues....The book should become 'required reading' for our field...a very fine piece of work that will be a valuable tool for educators, students, and policy-makers."—Roger Yarrington; Vice President, Research and Development, American Association of Community and Junior Colleges "...a thorough job of compiling the pertinent data; of identifying key questions; and of focusing upon central, rather than tangential, issues....Leaders and policy-makers in community colleges and in governmental positions will undoubtedly find the work an invaluable resource."—Bill J. Priest; Chancellor Emeritus, Dallas County Community College District

Grounded in an economic perspective, Financing Community Colleges: Where We Are, Where We're Going helps college leaders make sense of the challenges they face in securing and managing the resources needed to carry out the community college mission. Finance has perpetually been an Achilles heel for leaders at all levels of management. With the premise that leaders are better at winning battles they know something about, this book equips leaders with an understanding of the fundamentals and the complexities of community college finance. It tackles current and emerging issues with insight that is analytic and prophetic—a must read for current and prospective leaders.

Smart financial management means more students served Community College Finance provides an introduction to best practices for community college leaders and their boards, with guidance on the complex regulations, processes, and considerations surrounding the financial management of these unique institutions. As community colleges continue to increase in importance, this book provides non-technical yet extensive information to guide current and future leaders toward the establishment of effective processes to secure and maintain the funding that is so crucial to the education and future of millions of students nationwide. Readers will gain insight into the background and foundation of community college finance and learn the essentials of practice in today's economic and political climate. The discussion covers student financial aid, tuition, budgeting, and more, and explores the future of federal policy and what it means for the institutions that play such a critical role in the nation's educational system. Over eight million students attend more than a thousand community colleges in the United States today, and those colleges are now facing the retirement of their founding generation of leadership. Meanwhile, the balance between traditional funding sources is shifting as new models and approaches are being implemented, and comprehensive, guiding resources are lacking. This book fills that need with expert insight reflecting current realities and a true understanding of the challenges community colleges face. Readers will: Delve into factors affecting funding and the cost of attendance Develop a budgeting style and process that serves the institution Learn to manage fiscal crises effectively without reducing standards Consider the future of federal policy and how it will affect budgeting At a time when a difficult economy raises questions about the value of higher education, the value that community colleges offer becomes ever more clear. Community College Finance provides the guidance leaders need to help their institutions flourish.

This review of state approaches to community college financing includes information from 42 states, representing 97% of the total community college enrollments in the country. Section I offers a brief analysis of the status of community college financing in 1988, highlighting several changes in resource allocation methods. The report notes that funds are directed to institutions on the basis of individual and/or system negotiation instead of by full-time student equivalent (FTE); that the political influence of the system/institution has increasingly become a major factor in determining allocations; and that states are increasingly computing allocations based on a "cost to continue" with an increased number of instances of funding for defined categorical aid. Section II presents tables showing, for each state: (1) operating funds by source; (2) sources of state appropriations by percent for general operating and unrestricted funds; (3) mean expenditures of operating costs for credit programs; (4) rank order of states by reported expenditure per FTE student; (5) states reporting or anticipating changes in methods of financial support; (6) state funds which are categorical or for limited use; (7) sources of funds for capital outlay; (8) sources of funding for noncredit courses; (9) tuition/fee changes; (10) financial aid changes; (11) state provisions for colleges experiencing enrollment declines; and (12) state financial problems. Section III offers brief case studies of the financial situation in each state, grouped by type of funding method. Finally, section IV suggests revised criteria for financing community colleges. A 23-item bibliography is included. (UCM)

"It is by far the best study that I know of on community colleges. It comes at a critical time in the history of these institutions. It is carefully reasoned, beautifully written, and sound in its conclusions."--Howard R. Bowen; Professor of Economics and Education, Claremont Graduate School "...and excellent piece of work....Its quality is high and the book is significant. Its significance stems from the fact that it deals with an area of higher education not yet explored by other writings."--Earl F. Cheit; Dean, Schools of Business Administration; University of California, Berkeley "...a great job of describing and clarifying the issues....The book should become 'required reading' for our field...a very fine piece of work that will be a valuable tool for educators, students, and policy-makers."--Roger Yarrington; Vice President, Research and Development, American Association of Community and Junior Colleges "...a thorough job of compiling the pertinent data; of identifying key questions; and of focusing upon central, rather than tangential, issues....Leaders and policy-makers in community colleges and in governmental positions will undoubtedly find the work an invaluable resource."--Bill J. Priest; Chancellor Emeritus, Dallas County Community College District