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EDITOR
Debra D. Bragg
OCCRL Director

ASSISTANT DIRECTOR
Catherine Kirby
Information Specialist

PRODUCTION MANAGER
Linda Iliff
Administrative Assistant

 
     
 
   This Issue Features:
  The Community College Transfer Function in the 21st Century: Where Hopes and Dreams Collide
  Does The Transfer Function Matter? A Pragmatic Response to Townsend
 
 
  The Image of the Community College: How do key stakeholders perceive the image of the community college?
  State Taxes Support Rising College Costs
 
 

State Taxes Support Rising College Costs

by Jackie L. Davis

 
 
he axiom, "Change is the only constant," is certainly as true in American higher education as anywhere. Nationwide, from academic years 1980 to 1992, private universities increased their revenue per FTE (full-time equivalent enrollment) by 39%, public universities increased their revenue per FTE by 12%, while public community colleges actually decreased their revenue per FTE by 1% (National Center for Education Statistics, 1996). New tuition-based revenues for the private four-year sector consisted of new money that was not substituted for any loss of revenue. However, new tuition-based revenues in the public four-year sector were used to substitute for corresponding cuts in state appropriations. University of Illinois at Urbana-Champaign officials contend that the share derived from state taxes has declined from 49% of the university's total budget in 1980 to only 31.5% today (Breslin & Vogell, 2000). Thus, public four-year revenues per FTE have remained relatively flat during the twelve-year period—a nominal increase on the average of 1% per year. The decrease in revenue per FTE experienced by community colleges is likely the result of enormous nationwide increases in enrollment without corresponding significant increases in revenue.

During the period 1980 to 1997, headcount enrollment in all four-year colleges and universities increased by only 11.7% whereas the headcount enrollment of all community colleges increased by 22.7% (National Center for Educational Statistics, 1999). The increase in community college enrollment has been nearly double that of four-year colleges and universities. Furthermore, according to the American Association of Community Colleges (2000), 44% of all undergraduate enrollments in 2000 are in community colleges.

From 1980 to 1999, in-state tuition and required fees at all public four-year colleges and universities increased from $738 per year to $3,226 per year whereas the tuition and required fees at all private four-year colleges and universities increased from $3,225 per year to $14,003 per year (NCES, 1999). However, during this same period of time, in-state tuition and required fees at all two-year colleges increased from $526 per year to $1,704 per year (NCES). Even after adjusting for inflation, the increases, and the difference between the three increases, are still substantial. In Illinois, to help offset the sizeable increases in tuition and required fees for Illinois students attending private and public institutions of higher education, the state's legislature has continued to appropriate increasing amounts of tax dollars for direct student aid support.

According to a recent report from The National Center for Public Policy and Higher Education (2000), Illinois ranks number one among the 50 states by offering student financial aid at 124% of the federal student aid level while some states provide little or no state financial aid for college students. ISAC (Illinois Student Assistance Commission) is the state agency that receives appropriations from the legislature to support the MAP (Monetary Award Program). ISAC awards need-based MAP grants to students attending Illinois higher education institutions, and the institutions then submit vouchers to ISAC for repayment of the students' tuition awards.

For comparison purposes, the chart shows the amount of tax dollars appropriated by the state of Illinois for the ISAC and the Illinois Community College System from fiscal year 1980 through fiscal year 2000.

Chart: State Funding for Illinois Community Colleges and Illinois Student Assistance Commission       Source: Palmer, J. (2000).

Although state appropriations for support of direct student aid and community colleges have both increased since fiscal year 1980, state appropriations for need-based tuition awards have increased at a much greater rate. In fact, in fiscal year 1995, state appropriations for Illinois student aid surpassed that which was appropriated for support of the state's entire community college system. However, it is very difficult to compare or contrast the financial needs of students attending four-year institutions with students attending two-year institutions.

To put the amount of aid awarded in perspective relative to higher education institutional types involved, the following chart shows the percentage of students, by institutional type, whose students received ISAC awards in school year 1999-2000.

Sector
% of all students applying for aid
% of all ISAC funds awarded
Public community colleges

Public 4-year colleges/universities

Private 4-year colleges/universities

Other
40%


29%


25%

6%
12%


37%


43%

8%
Table: Illinois Student Assistance Commission (2000).

It is perhaps noteworthy that, while only one-quarter of the students attending Illinois' private four-year colleges and universities were eligible to receive ISAC monetary awards in school year 1999-2000, they, in fact, received nearly one-half of all the state's public tax funds awarded by the ISAC. Regardless, a student's total student financial need will typically be higher at a four-year institution, private as well as public, because of the necessary inclusion of basic living expenses—room and board, whereas most community college students, especially in Illinois, live at home—theirs or their parents'. One can only surmise that this increase in need-based student financial assistance is a direct result of the Illinois Legislature's response to the costs of attending private and public four-year colleges and universities increasing at a much greater rate than personal family income. Undoubtedly, more research on the cost of higher education in Illinois will likely provide valuable information for state legislators and higher education policymakers to consider.

[Editor's note: We would invite anyone with an interest in this topic to respond to Mr. Davis in a future issue of UPDATE.]


References

American Association of Community Colleges. (2000). All about community colleges. [On-line]. Available: http://www.aacc.nche.edu/allaboutcc/snapshot.htm

Breslin, M. M., & Vogell, H. (2000, December 9). U. of I. seeks big jump in new student tuition. Chicago Tribune, p. MW7.

Illinois Student Assistance Commission. (2000). Monetary award program FY 2001 recompute. [On-line]. Available: http://www.isac-online.org/agenda/agenda07-00/items6.html

The National Center for Public Policy and Higher Education. (2000). Measuring up 2000: The state-by-state report card for higher education. Washington, DC: Author.

National Center for Education Statistics. (1996). Findings from the condition of education 1995 (NCES 95-769). Washington, DC: U.S.

National Center for Education Statistics. (1999). Digest of education statistics 1999. (NCES 99-036). Washington, DC: U.S.

Palmer, J. (2000). Appropriations of state tax funds for operating expenses of higher education. Normal, Illinois: Illinois State University, Center for Higher Education & Finance.


Jackie L. Davis (a 1974 graduate of Illinois Eastern Community Colleges: Lincoln Trail College), is Dean of Instruction at Illinois Eastern Community Colleges. He has worked in Illinois community colleges for more than 20 years, and he is nearing the completion of his doctoral course work in Community College Executive Leadership at UIUC. His research interests for the past three years have focused on state-appropriated funding of higher education. For more information, contact Jackie at Olney Central College davisj@iecc.cc.il.us or 618-395-7777.


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