The relationship of state-level community college financial regulations and the community orientation of institutions.

The study examined the impact of state financial regulation on perceptions of the funding of programs meeting local community needs at two-year colleges. A survey of current state financial regulation practices and local contexts was undertaken of state directors of 62 two-year systems in 49 states. A second survey gathered perceptions from 610 two-year public college presidents on the local emphasis of state funding. Through factor analysis six measures of state financial regulation were identified: (1) Budget Flexibility, (2) Budget Form, (3) Expenditure Oversight, 4) Tuition and Revenue Control, (5) Local Authority and (6) Personnel Administration. The 62 state system responses to each of these six measures of state financial regulation were utilized to develop seven regulatory types through cluster analysis. These seven financial regulatory types were found to lie on a continuum of high to low regulation. Based upon factor analysis, four measures of local community orientation were identified: Community Resident Programming, Business Community Programming, Community Service and Access Programming. The largest gaps in state funding plans were found to exist for Business Community Programming and Access Programming. Using both ANOVA and regression analysis, statistically significantly relationships were demonstrated between some fiscal regulations and all four measures of Local Community Orientation. Less local Business Community Programming were perceived to exist in environments with high levels of Tuition Controls, Expenditure Oversight Controls and less Budget Flexibility. State regulatory types with greater flexibility demonstrated significantly higher commitments to Business Community Programming. Greater local programming for educational Access was perceived to exist in state regulatory environments with greater use of categorical funding and Personnel Administration controls. A state's tax commitment to higher education was found to be significantly and positively related to Access Programming. In addition to Business Community Programming and Access, both Community Resident Programming and Community Service Programming were adversely impacted by restrictions on Budget Flexibility. The study also found higher levels of regulation demonstrated among colleges under the governance of universities and in states with greater state tax commitment to higher education. Lower regulatory environments existed among institutions that evolved from secondary schools. Technical colleges operated in significantly more state regulated environments than comprehensive community colleges.PhDEducation financeCommunity college educationHigher educationUniversity of Michiganhttp://deepblue.lib.umich.edu/bitstream/2027.42/161796/1/8812893.pd