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NC Community College System calls for new funding model amid enrollment surges, funding challenges

North Carolina's community colleges are experiencing a significant resurgence in student enrollment, marking the largest increase in 15 years, according to a 2024 North Carolina Community College System press release. Fifty-two out of the state's 58 community colleges saw enrollment increases last year, with an average growth of 5.4% across all institutions. This surge comes at a critical time as the system, which serves approximately 600,000 students annually, rebounds from pandemic-related disruptions and as the state increasingly looks to community colleges to help meet workforce demands.

At Johnston Community College, the growth has been particularly dramatic,

"We're up 23% year over year right now," Dr. Vern Lindquist, the college's president, said, adding that official figures will likely be lower as classes start, but even then, he is anticipating a 15-18% increase compared to last year.

The college reported record enrollment this year, according to a report last week from the Johnstonian News.

President of College of the Albemarle Dr. Jack Bagwell says his college, too, is experiencing increases this year. For the second straight year, Bagwell says the college has seen double-digit increases in enrollment.

Several factors are contributing to this enrollment boom. Lindquist cites the Commissioners Promise scholarship, which offers four tuition-free semesters to Johnson County high school graduates, as a significant driver. Both presidents point to improved marketing efforts and proactive outreach to former and potential students. Economic conditions, too, play a role.

"Community College enrollment has always been tied pretty tightly to what's going on in the economy," Bagwell said, noting the impact of inflation and perceptions of the economy.

The NC Next scholarship, which guarantees $3,000 a year for Community College tuition and fees for students from families earning less than $80,000 annually, is also believed to be boosting enrollment.

Despite the surge in enrollment, some community colleges are facing funding challenges, a the current funding model operates on a lag, meaning colleges are serving more students with budgets based on previous years' lower enrollment figures.

"We're looking at pretty much a 25% increase over the last two fall semesters, which means we're operating with 25% more students on the funding that we earned two years ago," Bagwell said.

The situation is exacerbated by the state legislature's failure to approve funding increases in response to enrollment growth during this year's short session.

"The way it works in the state system is that if you've got an enrollment decline … The money automatically goes down ... but with enrollment increases, the legislature actually has to vote to approve the increase," Lindquist said.

The NC Community College System, the state authority overseeing colleges across the state, asked legislators to approve $69 million in enrollment-based funding increases in this year's short session, but no such measure was passed.

The legislative inaction means colleges won't see additional funding until next year, forcing them to stretch resources thin -- that is if an increase is passed. For Johnston Community College, this translates to a gap of about $3.4 million, or 10% of their budget. At the College of the Albemarle, the figure is around $1.7 million.

The impact is tangible. Bagwell reports holding 8-9 positions vacant, including some key roles.

"We've got people doing double and triple duty on some things, which is, as you know, not a long-term solution," he said.

Meanwhile, Lindquist is tapping into reserve funds to hire essential staff, a move that he jokingly said makes his CFO "very nervous." He said the surge in enrollment is straining existing resources and that staff are being stretched thin.

"I need more faculty, I need more advisors, I need more staff in the financial aid office. I need more staff in student services," Lindquist said.

The impact extends beyond staffing. Bagwell emphasized how increased enrollment leads to higher costs for supplies and materials, particularly in technical programs.

"We've got a waiting list for our welding program, so just getting the steel for the students to weld is thousands and thousands of dollars," Bagwell said.

The current funding challenges come as several areas are experiencing growth in manufacturing, including three new expansions in Pitt County, Novo Nordisk's expansion in Johnston County, and an "aircraft superfactory" entering Greensboro. These businesses look to local colleges to supply a trained workforce.

"We have other things that we would like to offer and expand programs, but if you don't have faculty because you can't afford to hire - that's a challenge," Bagwell said.

The delay in approving funding increases is unusual.

"This is the first time in memory in North Carolina that there hasn't been this adjustment budget made," Lindquist notes from his conversation with other college presidents.

A budget bill, or any other legislative action, is unlikely this year as legislators closed for the year. That means community colleges are operating under budgets set two years ago when enrollment was significantly less.

"When you take away the promise of improvement in the budget, even though folks work hard, that's demoralizing and that kills momentum," Bagwell said.

Despite these challenges, both presidents remain optimistic, saying the enrollment surge shows how big a role community colleges play in North Carolina's education landscape.

"Of the problems to have as a college president, this is absolutely one of the better ones, but it's still a problem," Lindquist said.

As the state legislature reconvenes after the election, community college leaders hope for swift action on funding adjustments and other potential reforms that could shape the ability of these institutions to meet the growing demand for their services.

NC Community College System calls for new Propel NC funding model

In a separate matter, the NC Community College System is advocating for a new funding model called Propel NC. This model seeks to fund continuing education and for-credit courses at the same rate, as well as boost funding for classes in high-demand areas. Currently, continuing education courses receive less funding than credit courses, even when the content is similar.

"Propel will equalize that so that the disparity between continued education and credit is not as big," Lindquist explained.

Moreover, Propel NC would align funding with workforce demands.

"This will ensure that going forward, courses that are really needed - because they're going to meet a workforce sector demand - are something that the state is going to support in a meaningful way," Lindquist said.

The legislature approved the measure in part, but the System is advocating for a full adoption. The System says the Propel NC model will make local colleges more nimble and responsive to the workforce demands in their communities.

Ryan is an Arkansas native and podcast junkie. He was first introduced to public radio during an internship with his hometown NPR station, KUAF. Ryan is a graduate of Tufts University in Somerville, Mass., where he studied political science and led the Tufts Daily, the nation’s smallest independent daily college newspaper. In his spare time, Ryan likes to embroider, attend musicals, and spend time with his fiancée.