Threats Of Community College Essay

Community colleges offer students the opportunity to earn a degree or certificate, transfer to a university, and use the knowledge they gain to enter the labor force or promote within their current occupation. According to Austin (2009), there are 1,200 community colleges in the United States and approximately 112 community colleges in California. One of the primary benefits with taking your undergraduate courses at a community college is the savings in tuition compared to taking the same courses at a university. According to Bers and Head (2014), “every aspect of a community college has come under increased scrutiny, from academics to student services and from facilities to finances” (pg. 103). Even though community colleges are not-for-profit organizations and are exempt from taxes, they conduct transactions and hire employees similar to other types of firms.
Recession (impacts state, property taxes, budgets, students)
Recessions cause firms to adjust their labor force as a result of a reduction of sales and production. When a recession lowers the

demand for goods and services, firms adapt by eliminating idle positions and minimizing costs. They will also purchase fewer inventories from their suppliers, who will in turn, experience a similar ripple effect and terminate positions that are no longer needed. Consequently, when the economy experiences a recession the demand for education and training is expected to increase. However, schools are less likely to receive the necessary resources to meet the needs of incoming students because government receipts and appropriations are less under recessions than expansions. Exhibit 2 illustrates how students, community colleges, and government agencies are impacted by recessions.
State
Colleges that depend on their State for revenue must find ways to overcome periods of fluctuations and instability. Colleges that receive less funding are also more likely to reduce expenditures and initiate enrollment caps. One of the reasons states may reduce the proportion of funding to community colleges is as a result of economic conditions it experiences as well as political decisions made by State legislators.
After the 2008 recession California projected to operate with a $42 B dollar deficit in 2009 and its fiscal health deteriorated and by 2010 California had the worst credit rating in the Nation (Lin, 2008). In addition to the recession, California was in poor shape was because of its fiscal policies and because of the inability to adjust its tax base as a result of proposition 13 (Cohen & Drier, (2010).
Similarly, in Massachusetts, the state noticed a 35% decrease in its revenues in just one year as a result of the recession (Maley, 2009). States that experience turbulent economic conditions will adapt and attempt to mitigate their fiscal challenges by offering less funding to community colleges.
In Washington State, officials recently announced that appropriations for community colleges will decrease substantially from 2015-2017 (name 1, year). This news caught a lot of colleges by surprise because for the last few years colleges were given more resources than they received since the 2008 recession. According to the President of Columbia Basin College, his school will respond to the expected 15% reduction in his budget by cutting school programs or minimizing the number of courses offered to students. Even though the economic recession took place seven years age, colleges may still receive less funding by the State if legislators deem that the college does not need it.
Property taxes
According to Pederson (2005) in the early 19th century the cost of attending a community college was paid by local property taxes and student tuition. According to Miller and Holt (2005) nationwide, one fifth of the revenue community colleges receive is derived from local taxes. The authors describe how sales taxes are commonly allocated to the states general fund while property taxes are allocated for K-12 schools and community colleges. According to Kelly (2004) “property taxes remain one of the most important sources of tax revenue for municipalities, counties, and school districts” (26). Property taxes in California however, cannot be changed dramatically in a short period of time. These types of taxes make up the majority of revenue for local governments however, Proposition 13 implemented in 1978 limits the amount of property taxes the State can charge to 1% of their assessment (Sirmans & Sirmans, 2014)
Budgeting (amount from each source, personnel costs, lower expenditure, increase revenues)
One of the primary responsibilities of college officials is to allocate the resources they receive from the public efficiently and effectively.

Colleges receive financial resources from the Federal, State, and local government agencies. They also have the opportunity to receive resources from trusts, endowments, fundraising, school sponsored entities, and investments made with reserves. One of the greatest threats community colleges are encountering are as a result of private institutions. According to Phelan (2014) for-profit institutions “threaten not only the current nature of community college funding streams” as well as their viability. In my experience, the cost of personnel including teachers, staff, and administrators are approximately 80% of total expenditures. If these positions are permanent, schools will not be able to reduce them, in the short term, in order to balance their

budgets.
Students
According to Austin (2009) as a result of the recession a large number of people have been laid off or have become underemployed. These individuals may have decided to enroll in community college in order to update their skills and gain knowledge in fields that are needed in the workforce. The demand for community college courses has also increased for university students that would like to save money by taking their general education classes at a college and transferring them to a University. According to Austin (2009) 40% of GI beneficiaries pursue a an education at a community college. According to (name 2, year) enrollment in Mississippi colleges increased by 20% after the 2008 recession while on average, colleges noticed from 2008 to 2011 a 13.2% increase in student enrollment (Phelan, 2014). In order to accommodate the influx of students, colleges must search for additional forms of revenue including raising tuition fees or searching for ways to reduce expenses.