Community college leaders would determine state funding formula under House bill

Legislation to have community college presidents determine the formula for distributing state funds passed through a House subcommittee Tuesday with unanimous support from both lawmakers and college leaders.

Senate Study Bill 3164 would create a “presidents council” made up of presidents and chancellors from each of the state’s 15 community colleges and convened by the Iowa Association of Community College Trustees. The bill would task the council with approving a formula for distributing state dollars allocated to the Iowa Department of Education for the schools.

The bill would also strike a policy that states that changes to state allocations to community colleges must be based on audits of student enrollment.

At least 10 members of the council would need to approve the formula for it to be established for the year. If the council does approve a formula for the succeeding fiscal year by Oct. 31, the Department of Education would instead do so.

Community Colleges for Iowa Executive Director Emily Shields said all of the community college presidents and chancellors support this legislation, which they hope will modernize the funding distribution process and help close gaps in funding between colleges.

“Since (the formula) was put into code in such specificity, it really has not been touched in 20 years, and a lot has changed about higher (education) in 20 years,” Shields said. “So putting a process in the code rather than a strict set of guidelines allows us to continue the conversation.”

The current formula for determining the amount of funding each college receives includes base funding, marginal cost adjustments and a three-year, rolling average of full-time equivalent enrollment, among other items, according to the bill. Shields said the current state of Iowa’s community colleges has outgrown this formula, creating situations where some colleges are overfunded and others are underfunded.

Iowa’s community colleges receive an average of $3,500 per student in state funding and property taxes, Shields said. With the current formula, some colleges are being funded at 70% of what they need per student and others are seeing appropriations as high as 170%.

Shields said there are no intentions of changing the distribution formula every year, but the council would give the formula a hard look every five years to ensure it is working as it should to equitably fund all the state’s community colleges.

Melissa Peterson, legislative and policy director at the Iowa State Education Association, said the organization is generally in support of the bill, but had questions as to whether the new council would be subject to open meetings laws and if groups like employee organizations or bargaining units would have access to information before the formula is sent to the Department of Education.

Shields said associations are generally not subject to open meetings laws, but Community Colleges for Iowa, which the Iowa Association of Community College Trustees is included in, is a transparent organization and will provide any background information that is needed.

Subcommittee Chair Sen. Tim Kraayenbrink, R-Fort Dodge, voiced his support for the bill alongside subcommittee members Sen. Eric Giddens, D-Cedar Falls, and Sen. Ken Rozenboom, R-Oskaloosa. Kraayenbrink compared this legislation to the state’s allocation of funds to the Iowa Board of Regents, which then distributes the money to state universities, and said it makes sense to allow those who know best where the funds should go to handle them.

“It’s basically letting a board of some type distribute those funds because they know what the need is and what the specific needs are, and that may vary from year to year as well,” Kraayenbrink said. “So that’s the thing I kind of want out of this bill.”

The bill moves to the full Senate Education Committee for further consideration.