About Community College Funding
The first community colleges in the United States opened their doors more than 100 years ago. At that time they were called "junior colleges," and their primary purpose was to provide the first two years of a four-year college or university education. Since then, the mission of many community colleges has expanded to include vocational education, courses for hobbies and English as a Second Language (ESL) training. During the early part of the 20th century, tuition and fees also made up a larger proportion of community college funding. However, the present emphasis in many community colleges is on keeping tuition as low as possible.
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History
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Two-year, post-secondary institutions have been in existence since the early 1800s, but the term "junior college," as community colleges were known originally, is attributed to William Rainey Harper, who was president of the University of Chicago at the time. Harper urged the creation of "junior colleges" modeled on the first two years of a four-year college curriculum. Crane Junior College, the first City College in Chicago, was a unit of the Chicago Public School system and received funding from tuition, fees and the local school system.
The concept of community colleges was introduced by the 1947 President's Commission on Higher Education, better known as the Truman Commission, which also generated a wider acceptance of community colleges. Since then, the "junior college" concept has fallen by the wayside as two year post-secondary institutions have expanded their mission to include vocational training, remedial education, English instruction for non-native speakers and even noncredit courses. As a result, many community colleges have come to rely on funding from a number of sources -- federal, state and local.
Community Colleges vs. Free Standing Vocational Schools
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Although many community colleges include vocational training as a primary mission, they differ from free standing vocational schools. Free standing vocational schools often feature a very limited curriculum outside the stated emphasis, e.g., culinary arts or fashion design. This is because most free standing vocational schools are commercial enterprises, operating to make a profit and depending largely on student contributions, either through tuition or financial aid such as federally subsidized student loans for funding. As such, they are not obliged to offer the same variety of courses as a community college, which is nearly always a not-for-profit institution, receiving local, state and federal government funds.
Local Funding Sources
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Community colleges used to be funded nearly exclusively by local property taxes. Many community colleges were actually considered part of the local school system. However, most community college systems are no longer included in local public school systems and presently receive only a small proportion of their funding from local sources. During the 20th century, local funding for community colleges has declined dramatically from an average of 94 percent in 1918, to 49 percent in 1950, to just 18 percent in 1999.
State Funding Sources
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Many community colleges are now regulated as part of the state educational system, much like state universities, although usually not included in the state university system. As local funding for community colleges has declined, the contribution from state funding has risen to fill a portion of the gap. During the 20th century, state aid rose from zero in 1918, to an average of 26 percent in 1950 and 39 percent in 1999. States employ a variety of methods to determine funding levels, ranging from a flat rate provided annually to a per-head calculated amount to cost based funding.
Federal Funding Sources
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The federal government played a large part in the indirect funding of community colleges immediately after World War II. The Serviceman's Readjustment Act of 1944, commonly known as the GI Bill, made it possible for many returning veterans to attend colleges, universities and community colleges, which they did in massive numbers. The 1952 Veterans' Readjustment Act extending the benefits of the GI Bill to soldiers returning from the Korean War.
The Higher Education Facilities Act and the Vocational Education Act of 1963 outlined specific federal funding for community colleges. Although federal funding declined with the Reagan Administration, the Higher Education act of 1987 gave commuter college students a cost of living allowance for financial aid approximately equal to that of students of four-year institutions living in dormitories. Also, the Perkins Act of 1991 allowed for articulation agreements between community colleges and high schools, making it possible for high school juniors and seniors to take community college courses.
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