New Funding Formula Needed For Community Colleges

by Gary Toebben

In his January budget, Gov. Brown proposed a new funding formula for California's Community Colleges. The proposed "Student-Focused Funding Formula" would change the way community colleges are funded, from an enrollment-driven funding model, to one that takes into account the success of students in completing their educational goals. This outcomes-based formula reflects a long-standing Chamber priority to utilize funding incentives to improve student retention and the completion of degrees, credentials and transfer requirements.

In 2010, the Chamber sponsored Senate Bill 1143 (Liu) to change the community college funding formula, promoting policy and finance reforms that support improved student outcomes. While the original bill was not enacted, SB 1143 led to the creation of a Student Success Task Force, which made 22 meaningful recommendations for improving community college student success.

The Task Force's recommendations were adopted by the California Community College's Board of Governors and later implemented by campuses throughout the state. Since the recession ended, the State has invested more than one billion in our community college system to fund various initiatives. During this time period, however, even as our community college faculty, staff, administrators worked hard to implement policy and program changes, the six-year student completion rate remains at 48 percent.

For this reason we, like Gov. Brown, support the implementation of a funding-formula that incentivizes colleges to focus on student success in addition to enrollment. Recognizing that our local community colleges serve a high-need student population, the Chamber also recommends the following amendments to the Governor's proposal:

1) Include funding incentives that reward the completion of degrees, credentials and transfer requirements by low income, first generation and historically underrepresented students in order to close attainment gaps
2) Measure progress against a college's past performance and reward year over year improvements
3) Focus on key progression milestones, in addition to completion
4) Align performance indicators to employment outcomes for economically disadvantaged students
5) Support a phased-in implementation that allows colleges time to adjust to the new funding model

These modifications, in combination with the Governo's proposal, will ensure that community colleges serving our highest need students have the resources they need and the time they require to implement this monumental change. Our community colleges are more important than ever, especially for students and families with limited resources. There is no doubt that increasing community college student success will have long-term benefits for California's economy.

And that's The Business Perspective.