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\nArticle reuse guidelines: [sagepub.com/journals-permissions](sagepub.com/journals-permissions)[ ](sagepub.com/journals-permissions)© The Author(s) 2024. [https://journals.sagepub.com/home/ero](https://journals.sagepub.com/home/ero)  \nThe Revenue Implications of Community Colleges’ Reliance on Local  \nFunding  \nJustin C. Ortagus  \nUniversity of Florida  \nDominique Baker  \nUniversity of Delaware  \nKelly Ochs Rosinger  \nPennsylvania State University  \nRobert Kelchen  \nUniversity of Tennessee  \nOlivia Morales  \nAnna Peters  \nUniversity of Florida  \nMitchell Lingo  \nIowa College Student Aid Commission  \nIn this study, we leverage national data sources to examine the relationship between community colleges’level of reliance on local funding and their total institutional revenue, focusing specifically on community colleges educating the largest shares of low-income and racially minoritized students. We show that local funding is positively related to total institutional revenue for the pooled sample including all public community colleges, suggesting that local appropriations can supplement state appropriations in ways that benefit a historically underfunded sector of higher education. However, we also show that community colleges’level of reliance on local funding is negatively related to their total institutional revenue for rural community colleges and community colleges serving an above-average share of low-income students. Our findings align with scholarship in K–12 finance, indicating that local appropriations, such as property taxes, may exacerbate inequities facing the institutions serving larger shares of economically disadvantaged students.  \nKeywords: community colleges, local funding, equity, educational policy  \nIntroduction  \nCommunity colleges play a critical role in nationwide efforts to reduce attainment gaps in American higher education. As open-access institutions, community colleges educate a disproportionate share of low-income, racially minoritized, academically underprepared, and location-constrained students (Bailey et al., 2015) . As such, community colleges serve as engines of opportunity for millions of  \nhistorically underserved students while remaining extremely responsive to the workforce demands of their local economies (Cohen et al., 2013) .  \nCommunity colleges are asked to serve this pivotal role in spite of receiving lower levels of government appropriations and having fewer external funding opportunities relative to 4-year institutions (Romano & Palmer, 2016) . Prior work has shown that total state and local appropriations  \nCreative Commons CC BY: This article is distributed under the terms of the Creative Commons Attribution 4.0 License  \n([https://creativecommons.org/licenses/by/4.0/](https://creativecommons.org/licenses/by/4.0/)) which permits any use, reproduction and distribution of the work without further  \npermission provided the original work is attributed as specified on the SAGE and Open Access pages ([https://us.sagepub.com/en-us/nam/open-access-at-sage](https://us.sagepub.com/en-us/nam/open-access-at-sage)).  \nFIGuRE 1. Number of states with local funding for community colleges in FY 2018.  \nallocated to community colleges decreased by 9.1% between 2003 and 2013 (Feldman & Romano, 2019), and modest increases in appropriations since 2013 have not allowed community colleges to fully recover from the Great Recession (Kolbe & Baker, 2019; Rosinger et al., 2022) . According to a recent policy report by the Center for American Progress, 4-year institutions receive about $8,800 more in education revenue per student when compared to community colleges—this equates to a $78 billion difference in education revenue between the two sectors (Yuen, 2020) .  \nLocal funding has the potential to close (or widen) the considerable revenue gap between community colleges and 4-year institutions, but the financial","cbCaivKxHUIH4MDe","https://ap.wps.com/l/cbCaivKxHUIH4MDe","pdf",776756,16,"English","# Introduction\n## Role of community colleges in reducing attainment gaps\n## Government appropriations and funding disparities\n## Local funding as a revenue gap lever\n## Enrollment pressures and tuition revenue dynamics","[{\"question\":\"What is the focus of the study on community colleges’ funding?\",\"answer\":\"The study examines how community colleges’ reliance on local funding relates to their total institutional revenue, emphasizing colleges serving large shares of low-income and racially minoritized students.\"},{\"question\":\"How does local funding relate to revenue in the overall public community college sample?\",\"answer\":\"Local funding is positively related to total institutional revenue in the pooled sample of public community colleges, suggesting local appropriations can supplement state appropriations.\"},{\"question\":\"When is reliance on local funding associated with lower revenue?\",\"answer\":\"Reliance on local funding is negatively related to total institutional revenue for rural community colleges and for community colleges serving an above-average share of low-income students.\"}]","The Revenue Implications of Community Colleges’ Reliance on Local Funding | PDF",1792069129]