Bill would give Iowa community college leaders control of state aid distribution

DES MOINES — Presidents and chancellors from each of Iowa's community colleges would create a formula that would determine how state aid is distributed across the campuses under a bill advanced this week by a House panel.

Senate File 2405 would change the state’s community college aid distribution formula for the first time in about two decades.

  Buy Photo

Community college presidents and chancellors would convene annually in the fall to draft a formula by the end of October for the coming budget year.

In doing so, they would consider enrollment and combined support for each community college — including how much it received property taxes and other revenues in addition to state aid — “along with any other factors deemed relevant,” according to the bill.

At least 10 of the 15 community college heads must agree and then submit the formula to the Iowa Department of Education. If they can’t agree, the department would establish the formula.

No formula could lower funding to a community college below what it received in general state aid the previous year, unless lawmakers cut the total base funding appropriation.

Emily Shields, executive director for the nonprofit advocacy association Community Colleges for Iowa, said the aim is to distribute funding more equitably among colleges, taking into account enrollment and other factors.

Given enrollment growth, Shields said, some smaller colleges are getting more than the average per-student aid while others are getting below the average. That’s created funding gaps with some colleges receiving anywhere from 70 percent to 170 percent of what they should receive.

Shields said community college leaders would use a three-year rolling average of full-time equivalent enrollment in deciding the formula to avoid “big swings” in funding should enrollment jump or drop in a particular year.

“What we're looking to do is a more flexible and nimble system so that we can be responsive to enrollment and not end up in a situation with this big of a gap again,” she said.

  Buy Photo

Iowa Central Community College President Jesse Ulrich said the college in Fort Dodge receives about $2,700 in funding per student compared to a neighboring community college that gets $6,000 per student.

“It affects our tuition rates. It affects everything that we do,” Ulrich told lawmakers.

He said the bill would address funding disparities among Iowa’s 15 community colleges, prioritizing local control and input from elected officials.

Transparency concern

Melissa Peterson, legislative and policy director for the Iowa State Education Association, raised concerns about transparency and accountability under the proposed funding model.

Peterson said the bill would give a lot of responsibility and power to college presidents and chancellors, who would not be subject to open meeting laws.

  Buy Photo

While information on the formula approval would be posted online, Peterson worried the public may not get to know which colleges did not support a certain formula if they dissent.

“Who are the people who did not support the proposal, and why didn't they support the proposal?” Peterson said. “I am not concerned with this current body. I think we have a very good working relationship. I think it sets a precedent. And so if there's any exercise or any caution to be exercised, that would be the issue that I would raise."

Shields said no part of the bill is meant to be secretive or keep information from the public.

Lawmakers were receptive to calls for openness, and said it’s something they could come back and address in code next year.

The bill now moves to the full House Appropriations Committee.

“I’ve spent a career with community colleges. And I’ve got to be honest, the whole time, 41 years I was with the community colleges, it’s odd that the community college funding formula was in the code of Iowa,” Rep. Gary Mohr, R-Bettendorf, said.

“And so I think this is a huge step forward.”

Comments: (319) 398-8499; tom.barton@thegazette.com