05.27.2011 Policy Points

Analyzing The NC House Budget

The N.C. Budget and Tax Center recently released its detailed analysis of the budget legislation recently passed by the state House of Representatives. From the section discussing the budget of the N.C. Community College System …

The 10 percent in cuts would be primarily delivered through a management flexibility reduction ($44 million), changes to the formula by which funding for curriculum and continuing education programs is determined ($22.6 million), cuts to institutional and academic support ($8.5 million) and cuts to customized training programs ($7.6 million). In contrast to the governor’s proposal to eliminate a number of specialized centers and programs, the House budget reduces investment in these connectors to the regional economy by 10 percent. The NC Community College System estimates it would lose 1,000faculty positions.

The House budget nearly doubles the tuition increase proposed by the governor ($5.50 per credit hour) to $10 per credit hour, making post-secondary education less affordable,especially to low-income students. The budget bill also diverts lottery funds away from the NC Community College Grant program, directly impacting an estimated 15,000 students who receive financial aid to get skills training and education. The budget also cuts funding for critical student supports like the male minority mentoring program and institutional and academic support. All together, these cuts would undermine the system’s goal of ensuring access and successful completion of education and skills training so students can succeed in the labor market.

The budget also would make extensive changes to the system’s adult literacy programs.

Nearly 500,000 North Carolinians between ages 25 and 54 do not have a high school diploma. Increasingly, these working-age adults will need diplomas so they can get ahead in the labor market and earn enough to support their families. Despite the widespread need for the critical education and skills training that community colleges provide, the House budget proposes a cut of $10 million, or 12.4 percent, to adult basic education funding. This cut could jeopardize the N.C. Community College System’s ability to fully implement Basic Skills Plus, a nationally recognized effort that would connect students enrolled in adult basic education with accelerated job training.

The House budget would also shift entirely to receipts the General Education Development (GED) testing administration, which is critical to the completion of adult basic education and a milestone in the education and career pathway. The fee for individuals taking the GED exam could increase by 100 percent to $75. In combination,these changes in the House budget to investment in adult basic education could make it more difficult to students with the greatest need for education and skills training to complete their program.

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