Funding

For the 2003-2005 biennium, community colleges received 44 percent of their funding from the state’s General Fund, 28 percent from tuition, 21 percent from local property taxes and 7 percent from other sources.

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State Aid

State appropriations are from the General Fund. For the 2003-05 biennium community colleges received $410 million from the state General Fund, or approximately 44 percent of their funding.
When the legislature appropriates money to community college operations, it does so in a lump sum called the Community College Support Fund. The Department of Community Colleges and Workforce Development then distributes the Support Fund to the individual colleges.

In addition to providing support for community college operations, the state has participated in community college construction costs. During the 1970s approximately 65 percent of construction costs, or $79 million, came from the state. The 1987 Legislature appropriated $8.5 million for 65 percent of the cost of construction projects in 11 college districts.

The 1989 Legislature placed a reserve of $1 million in the Emergency Board for possible consideration of community college construction. The Interim Emergency Board appropriated approximately $3 million for a project at Clackamas Community College. The 2001 Legislature appropriated $1 million to Southwest Oregon Community College for campus buildings in Brookings, Oregon.

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Property Taxes

Property tax support for community colleges is determined locally, following the local budget and tax levy election laws. (See section on Understanding the School Budget.)

In the 1980s, state support for community colleges declined, while community college revenue from district tax levies increased. In 1977-78 local property taxes contributed 40 percent of the support for community college operations. In 1993-94 local taxes combined with state replacement revenue represented 51 percent of the cost of instruction.

Under Oregon’s constitutional property tax rate and assessment limitations (Oregon Constitution Article 11, Section 11), the state has picked up more of the costs of community college operations thus increasing the percentage of state funding and decreasing the revenue from local property taxpayers.

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Tuition

Although the amount of tuition varies from college to college, boards generally maintained tuition levels at about 18 percent of the cost of instruction until 1991, when tuition rose to 20 percent of the cost of instruction. By 1993, tuition represented 21 percent of that cost. In 2003-04, it represented 28 percent of that cost.

Since passage of Oregon’s constitution property tax rate limitation in 1990, community colleges have revisited their policies on tuition with some of the colleges raising tuition by as much as 30 percent to offset lost revenues. The chart on this page shows the percentage of state aid, local taxes and tuition for community colleges beginning with 1977-78.

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Federal Funds

Federal funds are primarily for professional technical education and adult basic education. Developing institution grants and student financial aid also may be included as separate budget accounts if the college receives them.

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