Compromise on state aid to community colleges discussed

Nebraska’s six community colleges would receive funding based on a new formula under a bill considered during an Education Committee hearing Jan. 24.

LB946, introduced by York Sen. Greg Adams, would establish a formula for distributing appropriated funds to community colleges. After months of negotiations, Adams said all parties were looking forward to returning to business as usual.

“What is most important at this point is that we’ve finally found some common ground,” Adams said. “They want to get on with the business of running community colleges and not feuding over state aid.”

Funds would be distributed based on a number of factors under the bill. The initial amount of appropriated state aid, up to $87.8 million, would be allocated based on the proportionate share of aid received by each community college for fiscal year 2012-13.

Funds in excess of the $87.8 million, up to $500,000, would be appropriated to the Nebraska Community College Student Performance and Occupational Education Grant Fund. The six schools could apply for any portion of that money. An appointed committee would determine how that money is to be allocated.

Any funds remaining after the first two allocations have been made would be distributed as follows:
• 25 percent divided equally to the six community colleges;
• 45 percent based on each school’s average full-time enrollment numbers; and
• 30 percent based on each college’s average reimbursable educational units.

Beginning in FY2013-14, community colleges also would be granted aggregate levy authority of 11.25 cents per $100 of taxable valuation.

Todd Holcomb, Western Nebraska Community College president, testified in support of the bill. He said the bill allows for growth and flexibility.

“We have far greater similarities than differences,” Holcomb said. “We need to support our common goals.”

Dave Newell of Omaha said he could not support the bill as it is currently written. He believes Omaha’s Metro Community College would receive a disproportionate percentage of state funding based on the number of students the school serves.

“We’re not getting our fair share back,” Newell said. “There’s nothing fair for our taxpayers in this process.”

Marshall Hill, representing the Coordinating Commission for Postsecondary Education, testified in a neutral capacity. He said he worries about the quality of data used to build the aid formula but supports the solution.

“It’s important to keep funds dedicated for higher education focused on their initial purpose,” Hill said.

The committee voted to advance the bill to general file on a 6-0 vote.