Funding Models for Community Colleges

In the study, Kenton focused on 12 funds revenue sources between 1990 and 2000 for community colleges in 10 Midwest states. Data was provided by NCES and IPEDS. Based on the study, four models of funding were identified and the models generated revenue over the HEPI. Primary funding for colleges comes from a variety of sources including tuition and fees, local taxes, state aid, and federal aid. Tuition has increased over the years while subsidies steadily decline. Funding sources vary by state. Some states rely mostly on tuition and fees whereas other states rely on state appropriations. Funding models are of importance to college administrators and some models yield more revenue than others. Funding sources are key for an organizational structure to survive. The resource dependency model attempts to explain organizational and interorganizational behavior in terms of what resources the organization needs to survive. Based on the study, the funding patterns for the colleges fell in line with the premise of the resource dependency model. When more funds are raised, the rate of spending increases or exceeds inflation. When funds are low, colleges look to other sources. If an open access policy is in place, less emphasis is placed on tuition and fees. If the primary focus is serving the local community, more emphasis is placed on local appropriations.

Kenton, C. (2004). Funding models of community colleges in 10 midwest states. Community College Review, Winter 2004.