Discussion Paper

Following the Money: State and Local Funding for Community Colleges in the Fifth District

Abstract: Public colleges and universities (including community colleges) represent the largest sector of undergraduate higher education in the United States. In the fall of 2023, community colleges and public four-year universities enrolled 73 percent of all undergraduate students. These institutions receive most of the public state and local funds designated for higher education, but the level and composition of funding varies across states and institution types. State funding formulas have historically directed significantly more money toward four-year institutions than to community colleges — a trend that has continued even as community colleges are increasingly relied upon to train and educate students for high-demand jobs. What does state and local funding for community colleges look like across the Fifth District? Does the distribution reflect the changing dynamics of higher education?

Keywords: community colleges; education costs; education policy;

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Bibliographic Information

Provider: Federal Reserve Bank of Richmond

Part of Series: Regional Matters

Publication Date: 2024-05-24