We Are Not Alone, Part 2
In our October 24, 2008, issue of the Community College Update (“We Are Not Alone”), we discussed the State Budget shortfalls that were being faced by states across the nation before this fiscal year began. Just recently, The Chronicle of Higher Education (“State Budgets Are Likely to Squeeze 2-Year Colleges”) published information on a recent survey of community college funding issues across the nation, which found that California Community Colleges are definitely not alone in experiencing funding cuts—even midyear cuts.
The survey was sent to 51 state directors of community colleges (Georgia has two—one for community colleges and one for technical colleges) from August to October 2008, and 49 of the directors responded. The resulting report, dated October 30, 2008, and titled “Funding and Access Issues in U.S. Community Colleges: Selected Summary Data Files from a Survey of State Directors of Community Colleges,” found that 4% of those responding had experienced midyear budget cuts in 2006-07. For 2007-08, this increased to 19%.
The report combines the nine “megastates” (identified as California, Florida, Georgia, Illinois, New York, North Carolina, Ohio, Pennsylvania, and Texas), to account for about 51% of the state tax appropriations for higher education nationwide and enrolling about 52% of U.S. community college students. When asked for their opinions on the key drivers of their states’ budget decisions, almost all cited Medicaid program expenditures, K-12 education expenditures, reduced revenues to the state due to the recession, and tax cuts as the strongest drivers of state budget decisions. Higher education came in close behind. Corrections, unemployment insurance, and transportation expenditures were not nearly as strong drivers of the budget decisions.
Of the survey respondents, 34 of them reported that there is a statutory funding formula for the community college system in their state. Of those, 59% were not fully funded in 2006-07 and even more—64%—were not fully funded in 2007-08. At the same time, 48 of the 49 community college systems responding reported an increase in tuition and fees for 2006-07—averaging 4%—and 46 of the 49 systems reported increases in 2007-08, averaging just below 5%.
When the state directors were asked for their opinions about whether a structural budget deficit exists in their state that will harm public higher education and specifically community colleges, 60% of them responded affirmatively (27% said “no,” and 13% said “not sure”). When asked for their opinions on the likelihood of midyear budget cuts in 2008-09 for community colleges, 47 of the 49 responded, and 22 of those—46%—believe that the likelihood is high or very high.
This report, providing data and opinions about the effect of other states’ budget crises on the community colleges in each respective state, comes at a time when the California Legislature is about to convene its special session—the week of November 3—to address the state’s fiscal problems. While we brace ourselves for possible midyear cuts, clearly most other states are dealing with similar challenges. In the bigger picture, as the Governor’s Commission on the 21st Century Economy makes its recommendations on restructuring California’s revenue structure and otherwise providing for more financial stability for California, we hope that a long-term solution to our volatile State Budget is in our not-too-distant future.
—Sheila G. Vickers