State Revises Community College Funding Distribution Model to Help Drive Student Success and Equity
The changes to the community college funding distribution model approved today shift a proportion of dedicated taxpayer funding to support student success
Salem, OR – At its June 8 public meeting, the Higher Education Coordinating Commission (HECC) approved a major revision to the way in which over $550 million annually in local and state taxpayer funding is distributed to the state’s 17 community colleges. Developed after a year-long collaborative process, the new student-focused distribution model dedicates a proportion of taxpayer funds to support student success and equity outcomes for Oregon community college students. This is the first time in a generation the community college funding formula has been extensively reviewed in relation to statewide and community goals, and the changes reflect an intentional focus on improving success of underserved populations.
Ben Cannon, executive director of the HECC says, “For the first time, we are strategically dedicating a proportion of taxpayer funding to improving student success at Oregon’s 17 community colleges, while continuing the foundational funding that is focused on getting students in the door and supporting the incredible programs these colleges offer. This change is good news for students, for colleges, for Oregon’s diverse regions and communities, and for all our partners who are working together to better support thriving futures for Oregonians from underserved populations across the state.”
Tim Cook, president of Clackamas Community College and chair of the Oregon community college Presidents’ Council, says, “The community colleges are proud to have been part of a collaborative process that recognizes the need to allocate funding that supports students entering our colleges and rewards efforts toward certificate and degree completion. The new funding formula provides a mechanism to achieve our institutional and state equity goals while ensuring financial stability. This is a win for our students, our colleges, and our state.”
Prior to these changes, the funding model for community colleges has distributed taxpayer funds almost entirely based on student enrollment, alongside a small base payment that supports the operations of each college. While that formula was noted for a number of strengths including its stability, support for smaller, regional colleges, and funding equalization of state and local resources, it did not incorporate student success components. The revision keeps many of the qualities that were deemed strong in the existing framework, but adds two new components to better promote equitable student success and advance Oregon’s educational attainment goals for youth and adults, recognizing that different levels of support are needed to provide students from different backgrounds an equal opportunity to succeed.
Specifically, up to 10 percent of state taxpayer funds will eventually be distributed via the two new components which are designed to 1) foster student success by awarding a proportion of funding according to the enrollment of underserved groups, and 2) incentivize student success through weighted funding tied to the completion and success of specified underserved groups. The student success components focus on low-income learners, adult students, career/technical education seekers, and underrepresented students as identified by race/ethnicity. An equity analysis of the review process and redesign—available in the appendix of the CCSF report here and based on the HECC Equity Lens—found that redistributing funding based on prioritized equity populations is expected to result in a per student funding level that is 12 percent higher than it is today for students in the equity populations.
Terry Cross, chair of the HECC, says, “Thank you to all our state and college partners who have contributed so much wisdom and expertise to this review and the changes we approved today. We could not have done this without a deep level of collaboration and a shared commitment to improve the lives of Oregonians. The updates strike a critical balance between intentional change and necessary stability; we are acting on our commitment to improve equitable success, while maintaining the parts of the model that promote stability that institutions depend upon to support their students.”
The review process began in March 2022 and was highly collaborative in an effort to ensure the community college funding formula is consistent with the state’s higher education goals and the missions of the community colleges. The process included extensive consultation with a work group advisory to HECC staff, composed of representatives from numerous community college perspectives including presidents, business officers, student affairs staff, institutional effectiveness staff, and faculty, as well as the support of a third-party facilitator. Public updates were provided regularly to the Commission through its Funding and Achievement subcommittee. In spring 2023, a rule advisory committee was convened to consider potential administrative rule amendments related to the new design. The new formula design is expected to take effect starting in FY2025. The permanent rule amendments pertaining to the revision are available here and the changes as well as the process are described in detail in a presentation on the CCSF Review Process and the CCSF Review Final Report.
Jim Pinkard, director of postsecondary finance and capital for the HECC, says, “Oregon is already a leading state in student success-focused funding based on the 2015 rehaul of the state’s funding model for public universities, which was also reviewed and updated in 2021. With the changes to the community college model, we have broadened our commitment to equitable student success to all 24 public institutions. We look forward to continuing to closely monitor and review the impact of these changes.”
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