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21
Funding of Community Colleges across the United States
Nationwide, community colleges educate half of all college students. However,
the system of funding and the level of public funding for the community colleges vary
widely from state to state (American Association of Community Colleges, 2010). The
Morrill Act of 1862 (also know as the Land Grant) established state funding of
community colleges based on local and state taxes. Currently 26 states report that the
majority of their respective community college funding is provided by local property
taxes (State Funding for Community Colleges, 2000). The remaining 24 states report
that bulk of their funding is provided by state tax collections. Although each state’s tax
collection and education allocation is different, two common methods of determining
community college funding include a funding formula, set by the legislature, as well
as legislative hearings based on recommendations by the state board of education.
The first method, funding formula (also called Program Based Funding), uses
two mechanisms in calculating community college funding: pre-apportionment and
post-apportionment (Murphy, 2004). The pre-apportionment method determines the
total amount of funds that will be set aside for the community colleges from the state
general budget. The post-apportionment method determines how funds are allocated to
specific community college districts. States may employ a system that includes only
one of these systems or both. The survey also revealed that the formula based funding
generally includes three factors: enrollment, floor space, and peer institution funding.
The enrollment factor is defined by full-time equivalent students (FTES). However,
Object Description
| Title | Finance in the California community college: Comparative analysis and benchmarking of instructional expenditures |
| Author | Karamian, Martin |
| Author email | martinsfsu@netzero.com; karamim@piercecollege.edu |
| Degree | Doctor of Education |
| Document type | Dissertation |
| Degree program | Education (Leadership) |
| School | Rossier School of Education |
| Date defended/completed | 2011-03-17 |
| Date submitted | 2011 |
| Restricted until | Unrestricted |
| Date published | 2011-04-26 |
| Advisor (committee chair) | Picus, Lawrence O. |
| Advisor (committee member) |
Melguizo, Tatiana Vega, William |
| Abstract | The goals of this empirical study of community colleges are to 1) create a benchmark for per student instructional expenditures; and 2) account for variations in instructional expenditures among a peer group of community colleges in Southern California. The peer group sample included 22 single campus community college districts in the Los Angeles area. Using data for three fiscal years a refined mean benchmark value for instructional expenditures of $2,676.71 per full-time equivalent student (FTES) was estimated with a standard deviation of $326.54. Using Pearson product-moment correlation coefficient, 11 variables were correlated with instructional costs per FTES. The largest and only statistically significant determinant included the number of part-time instructors (-0.424). While other variables were correlated, none were statistically significant at the 95% confidence interval. The results from the sample suggest that larger colleges have lower instructional costs per FTES despite higher faculty pay. Expanding credit student enrollment within the funding growth limits set by the State, along with additional part-time instruction within the limits set by the State will likely result in lower instructional costs per FTES and an economy of scale effect. The effect of increased institutional size on quality of education was not assessed. |
| Keyword | finance; California; community college; comparative analysis; benchmarking; instructional expenditures; economics; higher education; spending; instruction; education; economy of scale |
| Geographic subject (state) | California |
| Geographic subject (country) | USA |
| Coverage date | 1990/2010 |
| Language | English |
| Part of collection | University of Southern California dissertations and theses |
| Publisher (of the original version) | University of Southern California |
| Place of publication (of the original version) | Los Angeles, California |
| Publisher (of the digital version) | University of Southern California. Libraries |
| Provenance | Electronically uploaded by the author |
| Type | texts |
| Legacy record ID | usctheses-m3775 |
| Contributing entity | University of Southern California |
| Rights | Karamian, Martin |
| Repository name | Libraries, University of Southern California |
| Repository address | Los Angeles, California |
| Repository email | cisadmin@lib.usc.edu |
| Filename | etd-Karamian-4454 |
| Archival file | uscthesesreloadpub_Volume23/etd-Karamian-4454.pdf |
Description
| Title | Page 29 |
| Contributing entity | University of Southern California |
| Repository email | cisadmin@lib.usc.edu |
| Full text | 21 Funding of Community Colleges across the United States Nationwide, community colleges educate half of all college students. However, the system of funding and the level of public funding for the community colleges vary widely from state to state (American Association of Community Colleges, 2010). The Morrill Act of 1862 (also know as the Land Grant) established state funding of community colleges based on local and state taxes. Currently 26 states report that the majority of their respective community college funding is provided by local property taxes (State Funding for Community Colleges, 2000). The remaining 24 states report that bulk of their funding is provided by state tax collections. Although each state’s tax collection and education allocation is different, two common methods of determining community college funding include a funding formula, set by the legislature, as well as legislative hearings based on recommendations by the state board of education. The first method, funding formula (also called Program Based Funding), uses two mechanisms in calculating community college funding: pre-apportionment and post-apportionment (Murphy, 2004). The pre-apportionment method determines the total amount of funds that will be set aside for the community colleges from the state general budget. The post-apportionment method determines how funds are allocated to specific community college districts. States may employ a system that includes only one of these systems or both. The survey also revealed that the formula based funding generally includes three factors: enrollment, floor space, and peer institution funding. The enrollment factor is defined by full-time equivalent students (FTES). However, |
