Dec
3
Written by:
Paul Lanning
12/3/2009 11:19 PM
With state budget cuts topping $840 million over the past two academic years, and an unprecedented enrollment growth of nearly 400,000 new students in the system in the last four years, California’s community colleges are continually struggling to do more with less. At a time when higher education is critical to the recovery of our nation’s economy, divestment in the community colleges is severely impeding their mission of providing open access to a higher education for all, and is resulting in a projected 250,000 students being turned away in the 2009-10 academic year alone.
As the largest system of higher education in the nation, the California Community Colleges have an opportunity to turn the tide and ensure increased financial stability in the future. This can be achieved by collaborating with statewide partners to increase the system’s ability to diversify funding sources and seek other revenue-generating opportunities, such as social enterprise efforts and statewide cost savings options, which can make a significant difference in a college’s bottom line and, ultimately, the number of students served.
The Foundation for California Community Colleges is working to develop opportunities for the system to benefit from new business opportunities and private investment. Last year’s groundbreaking $50 million scholarship endowment pledge by the Bernard Osher Foundation (and a $100 million statewide scholarship endowment goal) was one such opportunity, and today we are embarking upon a new project that will yield vital returns for our system as well.
The Kresge Foundation, a nationally known philanthropic foundation based in Troy, Michigan, has expressed strong interest in working to advance the California Community College system, in large part due to the system's standing as the largest higher education system in the nation and its vital role in educating California’s future workforce. The Foundation for California Community Colleges was invited by Kresge to submit a proposal for funding a statewide assessment to gain a better understanding of the California Community Colleges’ current, non-public revenue-generating activities and determine the existing resources, strengths and opportunities throughout the system.
Based on the proposal submitted by the Foundation, Kresge has awarded funding for a statewide capacity-building assessment to be conducted by an external consultant together with the Foundation. This assessment will analyze four integral parts:
o The capacity of the colleges’ fundraising programs.
o The social enterprise and earned income activities and opportunities;
o The existing business and corporate partnerships throughout the system; and
o Cost savings potential, through efforts such as centralization of services, and existing cost reduction models currently in place.
The ultimate goal of this assessment is to give California Community Colleges the tools and resources needed to garner increased private support and local campus partnerships, along with opportunities for cost savings through statewide resources and alliances. The results from this study will make it possible for the Foundation to secure additional funding to create a unique capacity-building model that could ultimately be implemented throughout the system.
The assessment will include a review of all 110 California Community Colleges through interviews with foundation executive to help determine fundraising capacity and existing practices, as well as gain an understanding and awareness of the businesses and corporations that have supported or may support the colleges. Staff managing other revenue sources, if other than the foundation executive directors, will also be interviewed to gain insights into the social enterprise and earned income activities of the campus, including facility rentals, vending and pouring contracts, and other forms of revenue, as well as potential cost savings opportunities for the campus through statewide efforts.
The Foundation will begin contacting college foundation executive directors and other college staff this fall to schedule phone interviews. The data accumulated throughout this process will be analyzed and compiled into a report by a neutral third party consultant, who will then present the findings to the Foundation. Ultimately, the information gathered through this process will be used to determine the best model for enhancing revenue generating capacity at colleges throughout the state and will support the implementation of a system-wide revenue generating, cost-reduction process.
The Foundation will begin contacting California Community College foundations in early 2010 to begin this study, with the goal of completing the assessment and compiling a written report by Spring 2010.
This is an exciting development for California’s community colleges. One of the nation’s most well-known philanthropic foundations is funding a precedent-setting study to identify and capitalize upon alternative revenue streams for our colleges, and the results of this unprecedented statewide study will yield data and intelligence that will be vital in our continued efforts to seek external, private support for our system. The results of this study, once complete, will be shared with all of our colleges, but will also be the basis for potentially significant private investments to expand our capacity. Working with the Kresge Foundation and other national funders, we hope to secure the fiscal resources to capitalize upon the many untapped opportunities our system presents, expanding the capacity of our colleges to develop sustainable, long-term approaches to some of their budget woes that will not be prone to the whims of annual state budget deliberations. It is only by identifying and securing diverse streams of revenue for our colleges that we can continue to address the significant unmet needs in our communities.
There is only one largest system of higher education in the nation. It is the California Community Colleges. We have tremendous power and even greater potential if we think and act as a system while attending to the unique needs and virtues of our individual campuses, identify opportunities at the local and statewide levels to benefit our colleges, and develop long-term, sustainable revenue opportunities. With the help of the Kresge Foundation, we look forward to taking on this challenge and creating a brighter future for our state’s 110 community colleges and the constituents they serve.
Copyright ©2009 Paul Lanning
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