Community Colleges Bracing For A Bigger Hit To Funding

By Linda Kor
   With the current economic recession being experienced throughout the country, one of the greatest concerns is the impact on post-secondary education. A burgeoning group of older students enrolling as they pursue new career paths due to lay-offs, high unemployment rates and cuts to state and federal aide is causing a strain on community colleges that will likely be greater than ever.
   A report entitled “Funding and Access Issues in Public Higher Education: A Community College Perspective” was unveiled Sept. 24. It outlines the current economic status of community colleges across the country, and what is to be expected as far as future demands and capabilities of community colleges.
   The study was conducted by the Education Policy Center at The University of Alabama, and the report is a compilation of information regarding the issues facing higher education at this time.
   A review of the report shows that all public higher education sectors are getting equal treatment regarding cuts and despite national publicity for community colleges, no additional state funding has been produced.
   The top budget driver in last year’s budget process was the decline in revenue. As a result, tuition is predicted to rise at more than double the rate of inflation. The report notes that the expectation that high tuition can be offset by high financial aid does not work, because states cut state student aid programs during recession while simultaneously raising tuition to offset budget shortfalls.
   According to Dr. Jeanne Swarthout, president of Northland Pioneer College, it is not state aid cuts that will hurt community colleges.
   “The state cuts to aid won’t hurt as much as the Pell Grant cuts. The state funding is primarily for the universities. The lack of federal aid will cause a lot of potential students to have difficulty receiving aid,” she explained.
   With property values dropping and an increase in unemployment, NPC has been put in the awkward position of having less funding, but more students.
   “We’re being flooded with workers who have been laid off and are looking for new or different skills,” explained Swarthout, who added that although there has been a reported increase in high school graduates in many areas of the nation placing a greater demand on higher education institutions, that has not been the case in Navajo County.
   The report also notes that nearly 80 percent of the states used American Recovery and Reinvestment Act (ARRA) stimulus funds for their intended purpose, which was to backfill revenue shortfalls. NPC is to receive $1.3 million in the first phase of these funds recently received by the state and is awaiting approval by the Navajo County Community College District Governing Board.
   “It is a requirement by the governor (Jan Brewer) that those funds be spent toward backfill. The only exception would be to demonstrate a greater need for those funds within three to five days, which is pretty much impossible,” stated Swarthout.
   Swarthout sees no light at the end of the tunnel.
   “The colleges were just asked by the governor if we could handle an additional 15 percent cut to state aid in January. That would put us at 38 percent below our funding formula. If this happens, we could be looking at closing down programs and possible lay-offs,” she warned.
   Even though all higher education facilities are getting hit hard, the rural areas take a bigger hit than the larger areas with less to pull from for support.
   “There are fewer opportunities here. Maricopa County can go to the local businesses and ask for more in property taxes. With values dropping here, it’s not going to happen,” said Swarthout.
   What it amounts to is trying to do more with less.
   “We have zero dollars for construction and infrastructure maintenance. We have to be very careful about maintaining the condition of our existing facilities,” Swarthout said.
   According to the president, it’s about balancing critical needs.
   “There are some things that we may have to let go of that just are not necessary, like our pretty green grass lawns and having to add modular facilities to accommodate student growth,” she stated.
   It is Swarthout’s prediction that the situation regarding the funding of higher education will get worse before it gets better.
   “I see the cuts becoming more severe over the next two fiscal years. Then I believe it will be a flat five to six years after that. The goal at this point is to stabilize the college and make sure we’re in a position to take the hits,” she said.
   Although Swarthout realizes she sounds pessimistic, the situation requires her to be aware of the possibilities.
   “It’s my goal to protect jobs and services. This being the case, I have to take the lower bottom line. I have concerns with property tax falling off, and after 2010 and 2011 the maintenance-of-effort will be gone along with stimulus funds,” she said.
   After property tax statements were mailed out, Swarthout received a number of calls from individuals wanting to know why they should support the community college, especially when they have no children enrolled in college.
   “I know it can be difficult, we’re in difficult times,” said Swarthout, who added that while it’s her job to address the worst case scenario, she wouldn’t mind finding out that her predictions are wrong, that students will be able to continue to afford a good education and that colleges like NPC will be able to continue strong during these difficult economic times.