US Community Colleges on a

Collision Course ?

Mission and Money

“No other countries but the United States (and to some extent Canada) have formed comprehensive community colleges. The primary reason is that compulsory continues for a greater number of years for America’s young people than it does in any other nation, a phenomenon seeding the desire for more schooling. The second reason is that Americans seem more determined to allow individual options to remain open for as long as each person’s motivations and the community’s budget allow. Placing prebaccalaureate, vocational, and developmental education within the same institution enables students to move from one to the other more readily than if they had to change schools.

Cohen & Brawer, 2008, pg 27

Diversity Major Characteristic

“Every state offers two-year colleges as the first rung on the ladder of higher education. But states differ greatly in the use they make of them.”

…for example…

market share of state’s higher education enrollment varies greatly by state

California, Washington, &

Wyoming = 46%

Nevada & Indiana = 11%

Shaffer, 2008

• Community college responsibilities are much the same across the nation– But very different by state

• …differences are real and important

Shaffer, 2008, pg 1

Community Colleges: Role & Scope

Mission

Broadly Stated

“…the mission of the community college is to provide access to postsecondary education programs and services that lead to stronger and more vital communities.”

Although they may achieve their mission with a different emphasis --- commitment to five basis principles are

essential the same for all CCs

Vaughan, 2006

Mission &CommitmentsShape Role & Scope

OPEN ACCESS

Serving all segments of society through open-access admissions policy that offers fair and equal treatment to all students.

COMPREHENSIVENESS

Providing a comprehensive educational program

COMMUNITY BASEDServing the community as a community-based institution of higher education

TEACHING AND LEARNING

FOSTERING LIFE-LONG LEARNING

Vaughan, 2006

Low Cost Option

• Relatively inexpensive option for students and taxpayers

• Tuition varies widely by state but in every state cost less than four- year

• In 33 states cost is half or less than four-year schools

• Total cost of operation is about 1/3rd of public four-year, graduate research institution.

CCs are the prim

ary way most

states deliver post-s

econdary

education!

Average Published Tuition and Fees in Constant (2008) Dollars,

1978-79 to 2008-09 (Enrollment-Weighted)

Sources: The College Board, Annual Survey of Colleges; National Center for Education Statistics (NCES), Integrated Postsecondary Education Data System.Trends in Pricing, 2008

Revenue Sources Another Important Difference

• have always operated in the political arena • funding has been marked by shifting

proportions coming from tuition, local taxes, and state revenues.

• Trend has been toward increased dependence on tuition

• States typically pick up a larger share than local tax districts

Cohen & Brawer, 2008

Curricular Functions

• Collegiate– Academic Transfer– General Education

• Vocational– Technical– Occupational

• Developmental (Remedial) Education

• Community Service– Continuing Education– Work Force

Development

Of late the definition of “community” has been broadened to include foreign nationals and a global workplace.

Cohen & Brawer, 2008, 5th ed.

Financial Differences

• CCs receive most of funding from federal, state and local taxes

• Far BIGGEST source• From state and local

taxes• Tuition and fees (from

varying degree) important source

• Other sources– Non credit courses– Continuing education– Work force and

contract training– Community service

activities– Foundations are

beginning to play a new revenue role new

State FundingState Funding

Local Property Taxes

Local Property Taxes

TuitionTuition

ThreeMajor

RevenueStreams

ThreeMajor

RevenueStreams

“In the final analysis, the funding package depends on the social,

political, and economic conditions as well as the

funding history of the community college in a given state or even a geographical

region.” Vaughan 2008, pg 22

Resource Dependency Theory

“…the key to organizational survival is the ability to acquire and maintain resources.”

worth discussion & consideration?

does it apply?

Access Mission

• Proposed SUNY, CUNY budget cuts hurt economic development (NYSUT Media Relations -

January 15, 2009)

• "The core mission of our higher education institutions is in jeopardy, and it's fair to ask how long it would take for them to fully recover," Lubin said. "Reducing access to college for New York students not only hurts our future competitiveness and forces New York businesses to look out of state or to other countries for highly skilled workers, it also cripples places like Oswego, Geneseo, New Paltz and Cortland, which rely on students on campus to fuel their local economies."

Access Mission Collision

• California Community Colleges May Reduce Enrollment by 250,000 Student (Chronicle of Higher Education, May 21,2009)

• “If the budget cuts are enacted, the 110-campus system will be forced to reduce its enrollment by a minimum of 250,000 students because it will have to eliminate courses and fire thousands of faculty and staff members, community-college officials said. The California community-college system is the nation's largest, enrolling about 2.7 million full- and part-time students each year.”

Source: Hudson, 2008, Dissertation, A Policy Analysis of Community College Funding in Texas

Revenue SourcesPublic Community Colleges

Source: AACC Fast Facts 2009

Hudson

Schoolcraft College

Tuition ……………..… 38%Property Tax ………… 41%State Appropriation .... 18%Other …………............. 3%

One Example

Wayne County Community College DistrictFrom Financial Plan 2008

Another Example

DETROIT HEADLINE

Wayne County Community College District (WCCCD) Prepares for Tough Financial Outlook

Wed May 13, 2009 12:02pm EDT

“The struggling economy of Michigan and Wayne County is negatively impacting WCCCD’s revenue from local property taxes and state aid. Pending a more detailed report form the Wayne County Treasurer’s Office, WCCCD is expecting reduction in property tax revenues …”

…70% default rate on payment of taxes…collapse of real estate values…cut back of state funds

Financial Viability and Stability

• WCCCD Chancellor Dr. Curtis L. Ivery said the College is taking immediate actions to respond to significant reductions in property tax and state aid revenues.

• "WCCCD is at one of the most pivotal junctures in its history. The personnel and financial decisions we make now will shape the college's development…financial viability and stability in the years ahead.”

Traditional but ….

• Tuition increase

• Cutting low-demand instructional programs and courses.

• Instituting a hiring freeze on vacant staff positions and reducing the number of overall jobs.

• Increasing class sizes.

• Offering early retirement to long-standing WCCCD employees.

• Reducing energy costs through environmental sustainability efforts.

• Increasing use of technology as a teaching tool, such as through distance learning.

• Cutting non-essential student activities.

• Reducing staff travel.

• Delaying equipment upgrades.

• Consolidating and restructuring internal processes to create additional efficiencies.

Mission Collision?

• …strategic decision to reduce institutional growth• …program enrollment caps• …not deny access to any eligible student• …admit all eligible students until classes are full• …offer only cost effective courses• …target ALL enrollment increases (health sciences)• …review remedial education (developmental at

what level?)

Mission Collision

One CC president commented last month:

“The money is just not there! We are getting out of the high school & junior high business…we need to think seriously about who can make it. In case you haven’t heard, the comprehensive

community college is dead!”

MichiganOne Solution

• Community College enter into contract with a company…

• CC with either self-fund or issue bonds to cover cost of training needed (facilities, faculty, etc.)…

• CC repaid through diversion of employee withholding taxes generated by wages earned by new employees…

New Jobs Training Program

Other Options Under Consideration by Michigan

• CC Retirement System Reform

• Debt Restructuring

• Baccalaureate in Applied and Technical Areas

• Job Training - diversion of employee withholding taxes to CC

Collision Alert

• The American Recovery and Reinvestment Act of 2009 – one time dollars – not a long term solution!

• The collision between constrained public funding and the open access mission of the community college is becoming well documented.

• Funding gap varies from state to state ---however it is a crisis!

• Crisis has led to a challenge to the fundamental mission of U.S. community colleges.

Adapted from the February 2009 ARRA Policy Statement

Will the U.S. community college of the future provide specific state approved

curriculum and services for the first-come, first enrolled and maintaining the open door only to the extent that resources

permit and ensured quality is a hallmark?

Will the U.S. community college of the future provide specific state approved curriculum and services for the first-

come, first enrolled and maintaining the open door only to the extent that

resources permit and ensured quality is a hallmark?