AREA COMMUNITY COLLEGES SQUEEZED BY ENROLLMENT, AID CUTS, AND LATE PAYMENTS

Mike McCagg

ccSCOOP News

01-14-10 - 4:05 p.m. - Reduced state aid per student and delayed payments from the state and counties are posing problems for area community colleges, even as their popularity soars.

In what is a proverbial double-edged sword, community colleges across the state are realizing a dramatic increase in enrollment, while the state reimburses them less per student. At Columbia-Greene Community College, enrollment reached 2,048 students in the fall 2009 semester, which represented a 12-percent increase over the last two years. Yet, the state paid $142,000 less than it would have for those same students just a year ago. Meanwhile, at Hudson Valley Community College, 13,500 students attended the school in the fall, up from 12,787 during the last fall semester and yet state aid for those same number of students decreased $935,000.

Community colleges have only three major sources of revenue: state aid, tuition, and funding from host counties. As a consequence, the reduction in state aid per student effectively shifts more of the education onto students and local counties. At the same time, payments to the colleges are being delayed.

At Columbia-Greene Community College, Director of Communications Allen Kovler reported a $83,000 delay in quarterly aid payments from the state last month as part of Governor David Paterson’s plan to withhold local aid payments while the state tries to find solid fiscal footing. “That’s supposed to be temporary, so hopefully it will be returned to us,” said Kovler. At Hudson Valley Community College, Paula Monaca, Director of Communications and Marketing, reported problems getting counties to pay their chargebacks on time.

"Chargebacks” are the way community colleges receive funding from their students' home counties when they attract students from counties other than the one in which the college is located. For example, a student from Rensselaer County attending Columbia-Greene Community College would represent a chargeback to Rensselaer County. There is no chargeback for students from Columbia or Greene counties who attend C-GCC because the taxpayers of the Columbia and Greene counties already directly subsidize students through the college’s operating budget. The chargebacks are designed to ensure one county’ taxpayers are funding the education of a student from another county.

“County governments are supposed to pay us the chargeback bills we send them within 45 days after they receive them. We are getting payments back to us after the 45 day period [has passed],” said Monaca.

“It is a hit for us, there’s no question about it," said Kovler, "but it is something we can manage at this point. What happens if the trend continues is the biggest question.”