EDHE 604 Community College Finance & Budgeting Maryland Community Colleges: A Patchwork Quil t Tschechtelin, James D. Community College of Journal of Research.

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EDHE 604 Community College Finance & Budgeting Maryland Community Colleges: A Patchwork Quil t Tschechtelin, James D. Community College of Journal of Research and Practice, m , Vol. 21, Issue 4

Governance Structure Changed in 1988 – The MD Higher Education Commission (MHEAC) created with 12 members appointed by the governor. Statewide coordinating board with authority to review and approve mission statements; Establish min. requirements for degree- granting institutions; Approval of new programs;

MD CC’s Governance Review performance accountability plans; Review (but not approve) and make recommendations regarding operating and capital budgets to the governor; and Coordinates the State Scholarship Board. Each CC is governed by a BOT appointed by the governor with the advice and consent of the Maryland Senate.

MD CCs Governance Montgomery – three campuses are governed by one board; Until recently in Baltimore County, three independent colleges reported to one board. Rural Eastern Shore – Chesapeak & Wor-Wic CCs serve five and two counties respectively.

MD CC’s Governance Following the abolishment of the State Board for Community Colleges, the MD Assoc. of Community Colleges (MACC) was established to coordinate and advocate on behalf of MD’s CCs. MACC’s board of directors includes a board member and the president from each of 16 community colleges boards of trustees.

Model of Financing MD’s Community Colleges These institutions were initially funded in the form of flat grants. Funding guidelines before 1965 was an equal one-third basis among the state, local subdivision and student tuition. Funding formula for state aid is specified by statute, and it has been changed many times to respond to the special needs of certain types of colleges.

Model of Financing MD’s CCs In 1986, the state aid formula was changed to include approximately 58% of state aid in the form of a flat grant to help cover fixed costs. One interesting element of funding community colleges is state funding for eligible noncredit courses. Noncredit courses are eligible for state aid based on state guidelines.

Models of Financing MD’s CCs Percentage of state’s’ budget for higher education has dropped dramatically in the past several years. Financing of capital costs is a shared responsibility of state and local government with the state funding between 50% and 70%, based on the wealth of the subdivision.

Funding of MD’s Community College’s Fiscal reality like many states presents a picture, slow growth, no growth and declines in state and local funding with no reduction in the educational needs and expectations of citizens and the business community. Implications for current trends – Maryland is a high tuition state. Rising tuition will freeze many lower-income students out of community college education.