Edinfo 0202: Trends in Community College Financing

Trends in Community College Financing

EDINFO 2002-02
February 2002
ERIC Clearinghouse for Community Colleges

Researchers at the Institute for Higher Education Policy in Washington, D. C. recently reviewed trends in community college financing. Drawing upon statistical data and studies from the US Department of Education, several patterns of community college financing emerged.

Sources of revenues:

Data indicated significant shifts of total community college revenues away from state and local funding toward external sources.

State and local appropriations for basic operations fell from 70% of total revenues in 1980 to 50% in 1996.

A combination of government grants and contracts, which included federal, state, and local programs for training and research, and private gifts from corporations and individuals grew from 2% in 1980 to 20% in 1996.

Tuition and fees:

Data also showed that tuition and fees have risen at a faster rate than the percent increase in total revenues, indicating shifts in costs toward individual students.

Total revenue from tuition and fees has increased from 16 percent in 1980 to 21 percent in 1996; the average tuition and fees at a public two-year college rose from $355 in 1979-80 to $1,239 in 1995-96.

Community college students borrowed more than $1.5 billion in the fiscal year 1996 through federal student loan programs – and increase of 135% since 1990.

This information was reported in ED439737, "Community College Financing: Strategies and Challenges. New Expeditions: Charting the Second Century of Community Colleges. Issues paper No.5." by Jamie P. Merisotis and Thomas R. Wolanin. A full-text copy of this document may be obtained by contacting ERIC Document Reproduction Services (EDRS), 7420 Fullerton Road, Suite 110, Springfield, VA 22153-2852; or by calling (800) 443-ERIC. This project has been funded at least in part with Federal funds from the U.S. Department of Education under contract number ED-99-CO-0010. The content of this publication does not necessarily reflect the views or policies of the U.S. Department of Education nor does mention of trade names, commercial products, or organizations imply endorsement by the U.S. Government. ERIC EdInfos are in the public domain and may be freely reproduced.

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