How do changes in public funding strategies influence community college completions

Shi, Zhan

Item

How do changes in public funding strategies influence community college completions

Shi, Zhan

Date

2025-12-05

Abstract

The study adopted the logical model from a public finance framework (St. John et al., 2018) to examine the impact of state and federal funding strategies on timely completions at community colleges, controlling state characteristics. Using OLS regression techniques, the study shows that appropriation per FTE, federal loans per FTE and total grant aid per FTE are positively associated with timely completions, while published tuition and fees are negatively associated with timely completions. Although on average, promise states had lower completions than non-promise states, the impact of promise programs is subject of a detailed study of each program’s design, implementation and local context. Additionally, state economies, unemployment rates, and demographics contribute to the variability in completion rates. The results highlight the importance of public funding strategies in improving educational outcomes and provide empirical evidence that policymakers should consider when allocating the budget in supporting community colleges.