Lawmakers moving through bill to change community college funding

• Iowa's funding model for its 15 community colleges could change for the first time in 20 years
• Community college presidents and chancellors will get to pick the distribution method annually
• The aim is to make funding more fair and equitable, as some get below the average now
• Lawmakers included community colleges in their Higher Education Reform Act of 2024

In collaboration with Iowa’s 15 community colleges, lawmakers are moving through a measure to change — for the first time in 20 years — the way state general aid is distributed across the campuses.

The new distribution model, which has been under discussion for years, would be collaborative and would prioritize providing “the highest quality educational opportunities and services to the greatest number of students.”

“Current law provides that adjustments to community college state general aid allocations are required to be made based on the outcomes of audits of student enrollment,” according to a summary of the proposal. “The bill strikes this provision.”

Should Senate File 2405 pass, starting July 2025, community college presidents and chancellors would convene annually to draft before Oct. 31 a formula for the coming budget year. In doing so, they would consider enrollment and “combined support for each community college” — along with any other factors deemed relevant.

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 step in and come up with a distribution model for the year.

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No distribution formula proposed by either the presidents or the department could allocate funding to a community college below its general state aid the previous year — unless lawmakers cut the total base funding appropriation.

“This will be a big improvement,” Emily Shields, executive director for the nonprofit advocacy association Community Colleges for Iowa, told The Gazette. “All the presidents are on board. We’ve had unanimous support for this at every turn.”

A Senate committee passed the measure Thursday, meaning the bill now is eligible for debate by the full Senate and isn’t subject to an upcoming legislative deadline meant to winnow the bills lawmakers will consider this session.

‘Fairly and equitably’

The state’s total community college general appropriation for the current budget year is $228.9 million — a 3.2 percent increase over fiscal 2023’s $221.7 million, which was up 3 percent over 2022’s $215.2 million.

In addition to general aid, the state provides tens of millions to community colleges for workforce training programs, along with corrections education and various forms of concurrent enrollment funding involving high schoolers taking college courses.

Iowa’s existing community college aid-distribution formula is complex — using inflation as a determining factor, along with base funding, three-year rolling averages of full-time equivalent enrollment and marginal cost adjustments. If the state’s general aid increase 3 percent or more, it would trigger “an extraordinary growth adjustment” that would change the distribution formula.

Bringing in the biggest chunk of state general aid under the current funding model are the state’s biggest community colleges: Des Moines Area Community College at $39.1 million, followed by Kirkwood Community College in Cedar Rapids at $34.6 million.

But Shields said — given enrollment growth — some smaller colleges are getting more than the average per student while others are getting below the average — like DMACC. The goal with the new funding model, she said, “is to make sure the funds will be distributed as fairly and equitably as possible.”

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Kirkwood President Kristie Fisher told The Gazette by email this funding-formula review was a collaborative effort.

“The funding formula has been untouched for nearly 20 years,” she said. “And changes in enrollment patterns really drove the review to ensure it was distributing state general aid equitably.”

Other community college bills

Among other bills involving Iowa’s community colleges is the sweeping “Higher Education Reform Act of 2024” that focuses on the Board of Regents and its three public universities, but also would impose a new work-study program for community colleges — among other requirements.

The work-study mandate would require community colleges by fall 2025 to establish a program allowing students to complete an associate degree while working part-time for an employer who agrees to pay all tuition and fee costs and also a wage of at least the state minimum.

Community Colleges for Iowa reports most of its members already have employer partnerships involving tuition-and-fee coverage — meaning the bill mandate wouldn’t change much.

“Kirkwood already has employers who choose to pay employee tuition, so it is not a new concept for community colleges and a program would likely not change any of our relationships with business and industry,” Fisher told The Gazette. “Our goal would simply be to ensure a new program doesn’t require more work on the part of students, our employers, or the college.”

A mandate in the bill restricting any faculty senate committee or subcommittee from having governance authority wouldn’t change the community colleges’ current practices — as those boards all are advisory.

As to language in the proposed bill requiring community colleges to adopt policies that follow state law — regardless of rules from accrediting agencies — Fisher said, “It is our obligation to follow state law, and we always do this.”

“It is my hope that we never find ourselves in a position that a state law would conflict with accreditation because our accreditation is what makes our students eligible for federal financial aid and successful transfers,” she said.

Vanessa Miller covers higher education for The Gazette.

Comments: (319) 339-3158; vanessa.miller@thegazette.com