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Community colleges press for 3.5% state aid increases as enrollment shifts and ARPA dual‑credit funding ends
Summary
Nebraska community-college leaders told the Appropriations Committee that statutory formula mechanics and shifting enrollment mean four smaller colleges could see state-aid decreases unless appropriations increase; they urged a 3.5% annual increase to maintain services and avoid levies.
Presidents and trustees from Nebraska’s community colleges told the Appropriations Committee that recent changes in the community-college funding formula and enrollment projections leave the state’s smaller community colleges at risk of state-aid reductions, and they urged the committee to preserve or modestly increase appropriations.
Ryan Purdy, president of Mid Plains Community College, described how the Community College Future Fund replaced property-tax support and how statutory formula mechanics distribute aid; because the formula locks a base and distributes growth differently, some smaller colleges may see state-aid decreases based on enrollment patterns even while overall appropriations rise. Purdy said the preliminary budget includes a 5% cash‑fund estimate but no general‑fund increases for some state‑aid lines and that the smallest four colleges could see declines under current projections.
Witnesses raised inflationary pressures — labor (70–85% of college budgets), health insurance, utilities, and equipment — and noted ARPA dollars that subsidized dual-enrollment tuition ($5M/year through 2025) are expiring. Colleges said that absent replacement funds, some institutions could increase tuition and fees by 15–20% annually or use local levy authority; many community colleges are at or near tax‑levy lids.
Speakers stressed community colleges’ workforce role: over 90% of community‑college students are Nebraskans, and nearly 90% stay in state to work after graduation. Presidents asked the committee to adopt a 3.5% increase in state aid appropriations to align with the statutory “minimum” growth and to sustain programming, particularly for smaller rural colleges.
Metro Community College President Randy Schmaisel and other community‑college leaders emphasized that continuing the Community College Future Fund support replaced property-tax levies and benefited taxpayers, and they urged continued appropriation stability. The committee did not adopt changes at the hearing; college leaders asked for relief to avoid passing costs to local taxpayers or students.
