State Financing for Public Community Colleges: A Comparative Study of Fiscal Capacity and Tax Effort

This study examines patterns of state financing in public community colleges. The focus of the study is to not only show the disparities that exist across the 50 states in terms of fiscal capacity to provide funding for community colleges, but also in the effort that is exerted to fund community colleges. The study combines the Bureau of Economic Analysis' (BEA) data on personal income by state with the IPEDS variables on state and local revenues to community colleges to allow for a relative comparison of tax capacity and then tax effort by state. Results show that it is not enough to assume that just because a state has high per capita income level, and even a high level of perceived willingness to contribute to their state's community colleges, that they will do so.