Although the school became state-supported at that time, its campus remained privately owned until 1912. What are the advantages to creating an endowment through a planned gift? Rutgers was chartered in 1766, nineteen years before the University of Georgia, but did not become the State University of New Jersey for another 179 years. For example, a state might guarantee $8,000 of per-student funding per one percent tax. By leveraging data to unearth opportunities for additional state investment to increase student success, performance metrics could be a cooperative tool for policymakers and institutional leaders. They think, Well these institutions all are fat and happy. Stanford University's endowment of more than $17 billion is the fourth largest in the United States, while the University of Michigan's is nearly $7.7 billion and is the seventh highest. A separate survey by Manpower Group found that 46 percent of American employers cant find the workers they need. Note: Student services includes institutional expenditures on advertising and marketing. It is also important to consider how colleges spend their money. Yet, healthcare funding models, much like enrollment-based funding models in higher education, often suffer from the misaligned incentives: they prioritize the quantity of care provided rather than the quality of that care. Editor's Note: This story has been corrected to include the allocation for East Central University. Sign Up 4 Anonymous Upvoted by [18] These types of equity formulas may be helpful for improving access by incentivizing colleges to enroll historically underserved students and providing the institution with additional funds to help serve these students. ithakasr@ithaka.org, Privacy Policy States should strategically marshal local, state, and federal higher education resources to ensure that the students and institutions with the greatest needs receive the most support. Relative to something like defense spending or lowering taxes on people in high tax brackets, its definitely more worthwhile.. Established IITs and NITs receive a lion's share of this funding. Your first question, as above paraphrased, is simply whether a transfer of unobligated "C. E. P. & R. I. I cant take the $3 million for the new building someone gave me and use it for English and philosophy professors.. Savings. [7] Healthcare revenues are more diverse than PreK-12 education, but about 45 percent of spending on healthcare is from federal, state, or local governments. The PreK-12 education, healthcare, and international higher education sectors provide some useful examples of the successes and challenges of implementing these recommendations. Australias performance-based funding is more similar to the early versions in the United States where institutions compete for bonus funding. ", Vice President, Educational Transformation, James Dean Ward, Elizabeth Davidson Pisacreta, Benjamin Weintraut, Martin Kurzweil. These funds were provided through the Higher Education Emergency Relief Fund (HEERF) over the past year. Like public higher education, most direct government funding for PreK-12 education comes from state and local sources, rather than federal sources. The first institution in New England to actually operate as a public university is Westfield State University in Massachusetts, which has been public since its founding in 1838. With the costs of providing a college education rising, the reduction in state funding has created financial strains for many public colleges. All chancellors report as equals to a systemwide president, who in turn reports to a Board of Regents. Beyond these specific plans, many countries include generalized goals focused on equity. At the other end is Kansas, where there is no true state university system with a systemwide brand identity and a systemwide chief executive officer empowered to establish uniform policies across multiple campuses and to supervise the chief executive officer of each campus. Timing Of Federal Fund Distribution. The tradition of publicly funded state colleges began primarily in the southern states, where in the east and northeastern states other private educational institutions were already established. These complexities will require state policymakers to work collaboratively with institutional leaders and higher education researchers to determine these thresholds. We reviewed funding models from other sectors and countries to distill potential improvements on US states postsecondary funding and have three primary recommendations. State appropriations per full-time student have fallen from an inflation-adjusted $8,489 in 2007 to $7,642 in 2017, the last period for which the figures are available, according to the State Higher Education Executive Officers Association, of SHEEO. Much of the funds go towards the school's impressive research programs. Typically, endowment funds . [5] There is substantial evidence, however, that PBF restricts access for underrepresented students by inducing institutions to enroll and retain students who they deem most likely to graduate. Given the variable timing of distribution and usage, some college and universities realized institutional funds in different fiscal years. In each of these related sectors, existing funding approaches have had varying levels of success in fulfilling their purposes. Declines in state funding of higher education will likely worsen due to the economic ramifications of COVID-19. Provides $28.5 million in matching funding for Community College program and facility enhancements. Construction | State University Construction Fund Construction All opportunities are publicly advertised in the New York State Contract Reporter, on the Construction Fund website, and distributed to traditional contracting advertising sources and major contractor organizations. As per section 12(B) of the UGC Act, State Universities established after June 17, 1972 shall not be eligible to receive any grant from the Central Government, UGC or any other organisation receiving funds from the Govt. Your guide to technology in state & local government. This decentralization can perpetuate resource inequities, which may result in students in wealthier districts having more educational opportunities. Thats the proportion of the polls respondents who knew that funding had gone down. Most Americans believe state spending for public universities and colleges has, in fact, increased or at least held steady over the last 10 years, according to a new survey by American Public Media. State funding now covers slightly more than half of the CSU's operating costs, with tuition and fees making up for the remainder. To this end, many states are including performance-based funding models in their allocation decisions. University funding is complex and often, little understood. As per the 2017-18 Union budget, Rs 11,296 crores out of a total higher education budget of Rs 33,000 crores is for IITs and NITs. Research suggests that when a provider uses QIOs rigorously, patient care and outcomes can improve.[15]. The total amount of federal funds for Oklahoma colleges and universities is more than $110 million with $55 million designated for student grants. academic community use digital technologies to preserve the When institutions and states share a common goal, performance funding becomes a tool to track joint progress towards that goal rather than a top-down punitive approach to accountability. These scholarships have been awarded to deserving students for nearly 80 years. States should strategically marshal local, state, and federal higher education resources to ensure that the students and institutions with the greatest needs receive the most support. The General Fund provides the money that sustains the university's core instruction, departmental research, instructional support, related general administrative costs and facilities expenditures. For instance, if the state pairs PBF with a formula or incremental approach, then the state has determined that some minimum level of funding is necessary, but has not necessarily defined that amount as adequate. Determining which state university was the "first" is further complicated by the case of New Jersey's state university system. Theyre wrong. Although development of State Universities is primarily the concern of State Governments, development grants, including grants under special schemes, are provided to all eligible state universities. Yet, the outlook for state finances is grim, especially if federal investment stalls, and shrinking budgets and financial instability are likely to lead to reductions in state spending. The variation in expenditures across sectors reflects mission differentiation as well as the funding sources. Photo by Kate Flock for The Hechinger Report, By Elizabeth Hewitt, The Hechinger Report. Finally, higher education can learn from PreK-12s approach to the relationship between funding and performance. As we discuss in a companion brief, during times of constrained resources, states playbooks should include three key elements: ensuring that higher education funding is adequate, ensuring that institutions use funding efficiently, and targeting investment equitably to those students and institutions who need it most. The average annual cost of tuition, fees, room and board at a public four-year university for an in-state student is $21,370, according to the College Board. The special funding request would come in addition to the system's regular state funding request; it plans to ask for nearly $487 million from the state for 2020-21, up 2%, or $9.5 million, over the current year. Much like higher education, the PreK-12 education and healthcare sectors have a public purpose and often have similar organizational and funding structures to higher education. Many state universitiessuch as UCLA, Arizona State, and SUNY Geneseowere founded as normal schools. This disconnect between financial realities and public perception has far-reaching political implications, said Tom Harnisch, director of state relations and policy analysis at the American Association of State Colleges and Universities. Looking more closely at public colleges, there are significant differences between two- and four-year institutions. In 1876, the Texas Constitution set aside land in West Texas to support The University of Texas and Texas A&M systems of higher education. [8] Similarly, the structures of the higher education sectors in Australia, Finland, and South Africa resemble the US in that there is differentiation between institution types and all have well developed performance-based funding policies. Its difficult to build a broad-based coalition and mobilize grassroots support to call for increased investment in higher education if people dont see or understand the problem, Harnisch said. The U.S. Chamber of Commerce says this is keeping 40 percent of businesses from taking on more work. University endowments (and all endowments) have a specific legal structure that is intended to indefinitely perpetuate a pool of investments for a specific purpose. A State or Public University is funded by US government is called as State University or Public University. She said she doesnt know how the country moves forward unless we educate our young people to do good things, to be inventing things., To her, cutting higher education spending is insanity.. Provides $95 million in higher education workforce development grants with a private match requirement, including $10 million for community colleges, tech colleges, and Washburn University and $10 million for Private and Independent Colleges. A prominent example of this is the State University of New York, which is the largest comprehensive system of universities, colleges, and community colleges in the United States.[2]. In order to inform innovative thinking on state higher education funding, this policy brief explores how public funding in other sectors and jurisdictions supports adequacy, equity, and performance. For optimal browsing, we recommend Chrome, Firefox or Safari browsers. may require an adequacy threshold that is nuanced and variable. Incremental funding does not incentivize the efficient use of institutional resources or reward specific performance indicators. Jon Marcus, The Hechinger Report There are 251 State Universities of which, the UGC has been making budgetary plan allocation for only 123 state universities. Eric J. Brunner and Jon Sonstelie, Californias School Finance Reform: An Experiment in Fiscal Federalism, Working Papers 2006-09, University of Connecticut, Department of Economics, 2016. Many state universities were founded in the middle 19th century, in particular supported by the Morrill Land-Grant Colleges Acts of 1862 and 1890. The two most common ways to receive funding from Student Government are through the https://ris.utwente.nl/ws/portalfiles/portal/5139542/jongbloed+ea+performance-based-funding-and-performance-agreements-in-fourteen-higher-education-systems.pdf. Under a foundation grants system, states determine how much revenue a district will be able to raisebased on a reasonable property tax rateand fill in any remaining gap between this revenue and the districts adequacy goal. First, states should consider defining adequacy thresholds, or the level of educational spending that is necessary for colleges to meet certain outcomes, and then distribute base appropriations accordingly. "An Overview of State Higher Education Funding Approaches: Lessons and Recommendations.". To show your support for the areas that match your interests, you can designate the name of . [12] Many states with regressive funding at the local and state level rely on federal funds to boost resources available to disadvantaged students, schools, and districts. Skip to main content SUCF Board of Trustees Live Webcast - December 6 at 1pm EST . In the 2017-18 academic year, public four-year colleges received $48,000 per full-time equivalent (FTE) student in total revenue, compared to $17,000 per FTE at community colleges. [14], Much like other sectors, the healthcare sector demonstrates that tying performance to funding may be counterproductive, as these types of performance incentives have yet to improve quality despite repeated efforts to demonstrate they do. In this section, we discuss these three primary approaches and discuss how states funding strategies do or do not consider issues of adequacy, performance, and equity.[3]. 1) Tuition, fee is less at State Universities. When small colleges close, their hometowns feel the pain, Some colleges are totally unaffordable, and this tool proves it, Billions in Pell Grants go to students who arent graduating, new data shows. 1996 - 2022 NewsHour Productions LLC. The school eventually dropped high school instruction, but remained a community college until becoming a four-year institution in 1963. Of 71 countries, 58 had target goals related to students with disabilities, 57 had goals for low-income students, 43 had goals based on gender, and 40 had goals for minority groups.[17]. Under the provisions of the act, each state was granted 30,000 acres (12,140 hectares) of federal land for each member of Congress representing that state. Over 30% of federal contracts were dedicated to space research and development projects. This story was produced by The Hechinger Report, a nonprofit, independent news organization focused on inequality and innovation in education. Most state universities receive at least part of their funding from the state, although many have substantial income from tuition and fees, endowment proceeds, donations (such as from alumni or philanthropists), and revenue from royalties. Institutions may only receive partial funding if they fall short of meeting these goals. Special grants are being provided to other State Universities including Agricultural Universities having Engineering and Technology Departments. What Lessons about Adequacy, Equity, and Performance Can States Learn from Domestic and International Sectors? What a difference a year makes. She said states should help defray the cost of college. Thank you. Suzanne Mayer was appointed executive director of the $28.1 billion State Universities Retirement System, Champaign, effective immediately, a news release from the system said Wednesday. While the academy, later known as Augusta State University and now merged into Augusta University, was founded as a high school, it taught college-level classes from its creation, and its graduates were accepted into four-year colleges as sophomores or juniors, effectively making it a combination of a modern high school and community college. These formulas must be tied to control mechanisms that ensure the funds are spent appropriately. The governor announced Monday 33 colleges and universities across the state will received a total of $5 million in grants for security projects to enhance the safety of students and staff.. Few, if any, states set thresholds for the minimum amount of funding needed to achieve specific outcomes. Republic of the Philippines State Universities and Colleges Western Visayas College of Science and Technology SCHOOL OF GRADUATE STUDIES Burgos Street, La Paz, Iloilo City IE 502- FISCAL ADMINISTRATION MARK ANTHONY C. SORATOS EDGAR JAVISON Discussant Professor USE OF FUNDS AND BUDGET ALLOCATIONS IN STATE UNIVERSITIES AND COLLEGES 2. States do not use financial aid programs to provide adequate funding for institutions or incentivize institutional efficiency. A formula funding approach can consider some aspects of equity by including the characteristics of students enrolled in the formula. For incremental funding, neither the initial level of appropriations nor the size of the annual percentage change is reliant on designated adequacy thresholdsthe level of funding needed to achieve specified outcomes. Special grants are being provided to other State Universities including Agricultural Universities having Engineering and Technology Departments. It has heavy science and medicine research and innovation schools. Subscribe to Here's the Deal, our politics newsletter. Were really damaging the future of our competitiveness and I would argue even our security.. Instead, higher educations performance-based funding policies withdraw money when colleges fail to meet performance standards, risking a vicious cycle that dooms those institutions to longer-term struggles. Examples include: In other cases, the unqualified name remains the official name of an individual institution which is now part of a larger university system. Equity gaps in resources, access, and completion predate both the 2008 Great Recession and the increased use of performance-based funding policies, yet few states have articulated funding strategies to target resources to the students and institutions with the greatest needs. Classes began at UNC in 1795, and UNC is the only state university to have graduated students in the 18th century. On a national basis, the state university system was also assisted by the establishment of the Land-grant universities, under the Morrill Land-Grant Colleges Acts of 1862 and 1890. Total revenues at four-year public institutions total $350 billion compared to $55 billion at community colleges. There remains significant debate about which institution or institutions are the oldest public universities in the United States. McNair Scholars, Cooper Scholarship, McKissick Scholarship.</p>. [3], There are several states with hybrid in-between arrangements, such as Hawaii, Indiana, and South Carolina, where the systemwide leader of the state university retains direct executive control over the original flagship campus but also supervises the leaders of all other campuses in the system. States collectively cut spending to colleges and universities by 16 percent in real terms between 2008 and 2017, the CPBB says. However, PBF models have not been particularly effective at increasing outcomes measures, and, in some instances, have negatively affected groups of historically underserved students. The revenues generated from the Capital Improvement Trust Fund fee shall be dedicated to the university's institute for online learning. Ward, J. D., Pisacreta, E. D., Weintraut, B., & Kurzweil, M. (2020, December 10). Support Intelligent, In-Depth, Trustworthy Journalism. When first fully funded in fiscal year 1975, Pell Grants, the foundation grant program, provided more than 80 percent of the cost of attendance (tuition, room, board, books, and other expenses) at a typical public, four-year institution. These three approaches are methods for providing state appropriations directly to the states public institutions, but states also provide significant funding directly to students through state financial aid programs. Community colleges, however, receive nearly half of their revenue from government appropriations, the majority of which come from state governments. At four-year institutions, the three largest revenue sources are tuition and fees (20 percent), government appropriations (18 percent), and sales and services from hospitals (15 percent). 10 years later, goal of getting more Americans through college is way behind schedule, As jobs grow hard to fill, businesses join the drive to push rural residents toward college. The grants will assist students who attend 244 colleges and universities and provides resources to help these institutions recover from the impacts of the pandemic. All Rights Reserved. Funding comes from the following areas: State Appropriations: These dollars are appropriated to Illinois State University annually by the General Assembly and approved by the Governor for general operating expenses. Supports: Firefox 2.0+ Google Chrome 6.0+ Internet Explorer 8.0+ Safari 4.0+, Last Updated by admin on Tuesday, 19 April 2016 - 12:09pm, Universities/University Level Institution, National Assessment & Accreditation Council (NAAC), Rashtriya Uchchatar Shiksha Abhiyan (RUSA), Schemes Implemented Through Autonomous Organisations. Rutgers University, which had previously been a private school affiliated with the Dutch Reformed Church, was designated as a state university by acts of the legislature in 1945 and 1956. of India, unless the Commission satisfies itself, as per the prescribed norms and procedures, that such a university is fit to receive grants. In addition to using a performance-funding model, Australia has separate equity funding to improve access for Indigenous, low-income, and disabled students who colleges and universities have historically underserved. Then, the Great Recession struck, and state revenues dried up. . Helping Transform K-12 Schools & Improving the Educational Experience, Helping Higher Education Create the Smart Campus, The Increase in School Ransomware Attacks, Tackling the Challenges of Education Sustainability, Making Higher Education Safer Using Smart Technology, California Residents - Do Not Sell My Personal Information. Now they pay for nearly half. How Do States Currently Support Public Higher Education? The University of Tennessee was originally chartered as Blount College in 1794, but had a very difficult beginninggraduating only one studentand did not begin receiving the promised state funds until 1807 when it was renamed East Tennessee University. president of the Association of Pennsylvania State College and University Faculties the union that represents more than . At a time when so many employers are struggling to find workers who have university degrees, Tyler Duffield thinks supporting higher education is as obvious an obligation of state government as it is essential. The University of North Carolina at Chapel Hill, while chartered four years after Georgia in 1789, was the first state university to hold classes. Just as other countries make equity an explicit goal, US funding models should do the same and develop concrete plans to meet these goals. sustainable ways. Our work also aims to broaden access to higher education by reducing costs and improving student outcomes. READ MORE: As jobs grow hard to fill, businesses join the drive to push rural residents toward college, Sarah Dowling, 60, a social worker in Maine and a Democrat with a daughter now beginning the college search, sees it differently. And people 65 and older are less likely to think this than those between 45 to 54, who may have children in college or college bound. The CSU's operating budget has two main funding sources: the state General Fund and student tuition and fees. Content of this website is owned and managed by D/o Higher Education, Ministry of Education. Public colleges and universities get funding from their state, students (tuition, fees, room, and board) and donations (mostly from alumni). Today, that land - encompassing 2.1 million acres - is leased to oil and gas companies whose wells generate revenue that flows into . Fifteen or 20 years ago we had the most highly educated population in the world, said Kevin Reilly, former president of the University of Wisconsin System, who now runs a program at the Association of Governing Boards called the Guardians Initiative to help university trustees push back against public and political skepticism about the value of higher education. The trend has . The Australian university system is largely funded through Government research and teaching grants and student fees supported by a Government-backed loan scheme. While both hospitals and colleges have outside forms of quality assurance, including accreditation and licensure, critics of enrollment-based funding and FFS models suggest that, to incentivize improvement, governing bodies should tie quality assurance to funding. So, instead of states using taxes to fund their public universities before the 1960's, federal tax dollars were used to guarantee student loans for public or private universities. States collectively cut spending to colleges and universities by 16 percent in real terms between 2008 and 2017, the CPBB says. It was the largest reduction of any state, accounting for nearly 30% of $1.8 billion cut nationwide from state higher education budgets. Columbia University received the second largest grant, $165 million, invested from the Centers for Disease Control and Prevention. With a pandemic-driven recession and unemployment stratified by postsecondary attainment levels, investments in education, including higher education, are needed now more than ever. The State University Construction Fund is a New York State public-benefit corporation that addresses the construction and capital planning needs of the State University of New York and affiliated institutions. Stanford University's endowment of more than $17 billion is the fourth largest in the United States, while the University of Michigan's is nearly $7.7 billion and is the seventh highest. US PreK-12 education includes all three elements and the healthcare sector reflects elements of accountability. As seen in Figure 4, public two-year colleges spend the largest share of their total expenditures on instruction at 41 percent. Examples include the California Community Colleges System, the Florida College System, and the Technical College System of Georgia. The State University of New York (SUNY) is one of the nation's largest comprehensive public university, offering over 7,000 degree and certificate programs at the research universities, community colleges, medical schools, and colleges of technology that comprise its 64 campuses. That has pushed up the portion of university budgets that come from students to $6,572 from $4,817 over the same 10 years. States collectively cut spending to colleges and universities by 16 percent in real terms between 2008 and 2017, the CPBB says. Around this time last year, California was projecting a pandemic-induced budget shortfall of $54 billion, with public higher education facing a budget cut of $558 million. The South Carolina State University Foundation is proud of our partner . Rather than withholding funds, however, district interventions must include an assessment of whether districts equitably allocated their resources and must reserve seven percent of federal Title I funds to turnaround low-performing schools. Rather than penalizing underperforming institutions by decreasing their funding, states should instead target investments and oversight that help build colleges capacity to serve the students they have. Other funding sources include state government funding, overseas student fees, investment income and income from contract . This is true despite the fact that state budget cuts for higher education translate into higher tuition. Postsecondary funding models should reflect these lessons and use performance and outcomes as opportunities to learn how to improve educational programing and services. 212.500.2355 and public funding (e.g., state appropriations). Any country that chooses not to prioritize higher education makes itself less competitive in the world.. Second, the experience of PreK-12 funding illustrates that defining adequacy thresholds alone does not address inequities across institutions. The institution and the Ministry of Education collaborate to determine these multi-year agreements based on national education goals, institutional profiles and missions, and institutional goals. These schools include the United States service academies, Naval Postgraduate School, and military staff colleges. Sponsored by Payment's Dive What's next for the payments industry? Five states spent more in 2017 than in 2008: Indiana, Montana, Nebraska, North Dakota and Wyoming. land-grant universities, American institutions of higher learning that were established under the first Morrill Act (1862). [16] In this section, we review the approaches of three countriesAustralia, Finland, and South Africato the elements of equity and performance. Figure 10 Public Institutions Rely on Federal, State, and Other Major Funding Sources at Varying Levels Across States Composition of revenue per full-time equivalent student, by state, FY 2017 Note: Federal revenue in Pennsylvania and Delaware is understated because of those states' use of Financial Accounting Standards Board accounting standards. If the government keeps giving people more and more, theyll keep wanting more.. Additionally, the inclusion of a wide set of factors, including student satisfaction and labor market outcomes, may help better align metrics with intended policy goals. Texas has six state university systems, plus four independent public universities. Such grants facilitate the creation, augmentation and up-gradation of infrastructural facilities that are not normally available from the State government or other sources of funds. In 1965, under the Johnson administration, the federal government began guaranteeing student loans provided by banks and non-profit lenders. In addition, recent state efforts to incentivize colleges and universities to raise completion rates, mostly through performance based funding (PBF) policies, have largely fallen flat and in some cases, widened racial and economic gaps in college access. South Africa has specific equity-based funding built into its formula to help compensate for discrimination under apartheid. For-profit colleges typically spend significantly more on marketing and advertising than their nonprofit counterparts, which is likely to skew the expenditure data for this sector. A state university that is designated as a preeminent state research university shall submit to the Board of Governors a 5-year benchmark plan with target rankings on key performance metrics for national . Members of foreign militaries and governments also attend some schools. The CDC Funding Data and Profiles site offers quick access to information on CDC funding provided to recipients in states and territories to address issues of public health importance. Second, adequacy thresholds alone may perpetuate inequities if states do not adjust funding formulas to account for differing needs across students and institutions. Not surprisingly, public four-year colleges spend larger shares on research and hospitals, 16 percent of total expenditures each, than community colleges. Finally, performance metrics are one factor that states can consider as they determine the equity and adequacy needs of institutions and work to improve underperforming institutions. In fact, since incremental funding formulas do not explicitly account for changes in enrollment or other factors, this approach can result in institutions having fewer resources to spend per student, especially if the annual fixed percentage increase is insufficient. Charitable gifts from alumni, companies and other donors also fund endowments, pools of money that universities and their foundations created to collect and invest donor dollars in assets like. Recent efforts in some states to redefine PreK-12 funding formulas to account for students needs are laudable, and even more so in times of scarcity, states should strongly consider these approaches in both the PreK-12 and higher education sectors. This generates over $2.6 million in fee revenue, which is distributed to student organizations and services all across campus by the Iowa State University Student Government. Jon Marcus, higher-education editor, has written about higher education for the Washington Post, USA Today, Time, the Boston Globe, Washington Monthly, is North America higher-education correspondent for the Times (U.K.) Higher Education magazine, and contributed to the book Reinventing Higher Education. 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[ 15 ] these institutions all are and! Are through the https: //ris.utwente.nl/ws/portalfiles/portal/5139542/jongbloed+ea+performance-based-funding-and-performance-agreements-in-fourteen-higher-education-systems.pdf or institutions are the oldest public universities was. Or incentivize institutional efficiency aspects of equity by including the characteristics of students enrolled in the formula the economic of! Independent news organization focused on inequality and innovation schools at four-year public institutions total $ billion. University is funded by US government is called as state University Foundation is proud our. Programing and services would argue even our security University to have graduated students in the 18th.... Of University budgets that come from students to $ 55 billion at community colleges appropriations, the in...