Document Author: Robert Kelchen

The Revenue Implications of Community Colleges’ Reliance on Local Funding (2024)

In this study, we leverage national data sources to examine the relationship between community colleges’ level of reliance on
local funding and their total institutional revenue, focusing specifically on community colleges educating the largest shares
of low-income and racially minoritized students. We show that local funding is positively related to total institutional revenue
for the pooled sample including all public community colleges, suggesting that local appropriations can supplement state
appropriations in ways that benefit a historically underfunded sector of higher education. However, we also show that community colleges’ level of reliance on local funding is negatively related to their total institutional revenue for rural community
colleges and community colleges serving an above-average share of low-income students. Our findings align with scholarship
in K–12 finance, indicating that local appropriations, such as property taxes, may exacerbate inequities facing the institutions
serving larger shares of economically disadvantaged students.

Financial Need and Aid Volatility among Students with Zero Financial Need and Aid Volatility among Students with Zero Expected Family Contribution Expected Family Contribution (2015)

Students with a zero expected family contribution (EFC), as calculated using the Free Application for Federal Student Aid (FAFSA), are those with the greatest financial need and least ability to pay for college, and they now make up more than one in three U.S. undergraduate students. Yet little is known about the year-to-year financial aid volatility of these students, or whether it varies by how the zero EFC was determined. This paper uses nationally representative data to examine trends in zero-EFC receipt over time and then use studentlevel data from nine colleges and universities to examine zero-EFC stability over multiple years by zero-EFC status. The results indicate overall stability in zero-EFC receipt across multiple years; about eight in ten students with a zero EFC keeps that status one year later. However, this masks a great deal of heterogeneity among zero-EFC recipients by dependency and FAFSA filing statuses. These differences have significant policy implications for allocating scarce financial aid dollars.

The Costs of College Attendance: Examining Variation and Consistency in Institutional Living Cost Allowances (2017)

Discussions of college costs often focus on tuition and fees, but living cost allowances for room, board, and other expenses account for more than half of the total cost of attending college. The allowances, developed by colleges and universities, also affect student eligibility for federal financial aid and the accuracy of accountability systems. This study examined institutional variation in living cost allowances and assessed the consistency of allowances by comparing them to living cost estimates specific to the college’s region. Results across multiple specifications indicated that nearly half of all colleges provide living-cost allowances at least 20% above or below estimated county-level living expenses.

Accelerating College Knowledge: A Fiscal Analysis of a Targeted Early Commitment Pell Grant Program (2014)

The persistently low college attainment rates of youth from poor families are partly attributable to their uncertainty about college affordability. The current federal financial aid system does not provide specific information about college costs until just before college enrollment and the information is only available to students completing a complex application. Evidence suggests this late timing reduces their motivation and ability to adequately prepare for college. This paper evaluates the fiscal consequences of instead making an early commitment of the full Pell Grant to eighth graders from needy families, using a simplified eligibility process. Analyses conducted using the Panel Study of Income Dynamics suggest the predicted costs are low relative to the benefits estimated using prior research findings. A simulation of the estimated fiscal effects indicates that Pell program costs would grow by approximately $1.5 billion annually and the benefits would exceed the costs by approximately $600 million.