During Iowa Community Colleges Day on the Hill, students visited the Iowa Senate chambers to watch proceedings, when they were acknowledged and given a standing ovation from legislators.
Core Funds Determined By The Iowa Legislature
The following are the leading appropriations contributing to Iowa community colleges. Because each of these is significant to the sustainability of each institution, we have compiled their history from 2017 to the present to understand recent trends and look toward future opportunities and challenges.
State General Aid
While community colleges are operationally lean, our ability to have a presence in all of Iowa's 99 counties requires a baseline of funds. In 2024, the formula for State General Aid changed to distribute funds more equitably between districts. It is a priority for State General Aid to increase at the same rate or a greater rate than inflation so that Iowa community colleges are not losing funding due to economic outlook and are positioned to support business and industry's workforce needs. Community college programming relies on grants and sources that can fluctuate greatly, and State General Aid is a sustaining source to support our state's strong community college system.
History of Appropriations/Deappropriations for Iowa's 15 Community College Districts
Vocational-Technical Tuition Grant Program
Iowans who lack financial resources have expressed the cost of tuition as the primary reason they are unable to complete higher education and start high-need, high-demand careers. Specialty scholarships like those provided in the Vocational-Technical Tuition Grant Program receive far more applications than funding allows. The average award ($650) is just over half of the maximum award allowed ($1,200) due to three main reasons: 1) some students are enrolled part-time and so their awards have been prorated; 2) some students received other forms of financial assistance and so the amount needed for tuition was less; and 3) funds were dispersed in a way to award a greater number of recipients at a lower amount. Even with these adjustments that allowed this fund to reach more students, less than 12% of students who applied were able to receive this scholarship.
Student Applicants vs. Awards for the Vocational-Technical Tuition Grant Program
|
Overview of the Vocational-Technical Tuition Grant Program |
||||
|---|---|---|---|---|
|
Year |
Funding |
Applicants |
Students Assisted |
Average Award |
|
FY2017 |
$2,250,185 |
19,649 |
2,674 |
$ 868 |
|
FY2018 |
$1,750,185 |
21,755 |
2,660 |
$ 656 |
|
FY2019 |
$1,750,185 |
20,501 |
2,642 |
$ 663 |
|
FY2020 |
$1,750,185 |
18,999 |
2,672 |
$ 658 |
|
FY2021 |
$1,750,185 |
19,791 |
2,548 |
$ 687 |
|
FY2022 |
$1,750,185 |
19,360 |
2,559 |
$705 |
|
FY2023 |
$1,750,185 |
19,312 |
2,552 |
$709 |
|
FY2024 |
$1,750,185 |
20,943 |
2,690 |
$638 |
|
FY2025 |
$1,750,185 |
TBD |
TBD |
TBD |
|
FY2026 |
$1,750,185 |
TBD |
TBD |
TBD |
Skilled Workforce Shortage Tuition Grant Program
With a similar aim as other specialty scholarship programs, the Skilled Workforce Shortage Tuition Grant Program (also known as the Kibbie Grant) provides tuition assistance to Iowans who lack financial resources and are enrolled in specified career or technical education programs at Iowa community colleges. The average award ($1,100) is just under half of the maximum award ($3,000) for two main reasons: 1) there are conditions that this scholarship is for one-half of the average community college tuition and fee rate for up to two years of education, which depending on the recipient's institution and program, could have the scholarship equal a lesser amount; or 2) funds were dispersed in a way to award a greater number of recipients at a lower amount. Although this fund was able to reach a greater number of students, only 25% of students who applied were able to receive this scholarship.
Student Applicants vs. Awards for the Skilled Workforce Shortage Tuition Grant Program
|
Overview of the Skilled Workforce Shortage Tuition Grant Program |
||||
|---|---|---|---|---|
|
Year |
Appropriation |
Applicants |
Students Assisted |
Average Award |
|
FY 2017 |
$5,000,000 |
19,649 |
4,415 |
$1,128 |
|
FY 2018 |
$5,000,000 |
21,755 |
4,453 |
$1,151 |
|
FY 2019 |
$5,000,000 |
20,501 |
4,394 |
$1,138 |
|
FY 2020 |
$5,000,000 |
18,899 |
4,401 |
$1,107 |
|
FY 2021 |
$5,000,000 |
19,791 |
4,325 |
$1,156 |
|
FY 2022 |
$5,000,000 |
19,360 |
4,229 |
$1,214 |
|
FY 2023 |
$5,000,000 |
19,312 |
4,467 |
$1,128 |
|
FY 2024 |
$5,000,000 |
20,943 |
5,270 |
$989 |
|
FY 2025 |
$5,000,000 |
TBD |
TBD |
TBD |
|
FY 2026 |
$5,000,000 |
TBD |
TBD |
TBD |
Last Dollar Scholarship Program
As one of the newest scholarship programs, the Last Dollar Scholarship was designed to cover the gap after other forms of state and federal financial aid were deducted. This effort was introduced in 2018, championed by Governor Kim Reynolds, and went into effect the following academic year. The average award is higher ($2,500) and the number of students awarded is more (8,000) than the other scholarships noted above. However, continuing the trend, more students are applying than can be awarded: only 37% of students who applied were awarded this scholarship.
Student Applicants vs. Awards for the Last Dollar Scholarship Program
|
Overview of the Last Dollar Scholarship Program |
|||
|---|---|---|---|
|
Year |
Applicants |
Students Assisted |
Average Award |
|
2019-20 |
23,114 |
6,547 |
$2,181 |
|
2020-21 |
22,627 |
7,864 |
$2,506 |
|
2021-22 |
22,033 |
7,764 |
$2,769 |
|
2022-23 |
21,832 |
9,985 |
$2,949 |
|
2023-24 |
21,381 |
8,013 |
$2,290 |
Many Iowans are interested in pursuing higher education, but the cost of tuition is stopping or putting strain on Iowans as they try to enter careers needed in our state. An increase in the long-stagnant appropriations of these programs, or the creation of new scholarships, may be necessary to meet Iowa's workforce needs.
Workforce Development Fund
Established in 2003, the Workforce Training and Economic Development (WTED) Fund is an important source of revenue for community college new program innovation, development, and capacity building, particularly for career and technical education. A requirement of the fund is for 70% of appropriated funds be used to support projects, programs, and initiatives that fall within Iowa’s targeted industry clusters defined in statute as advanced manufacturing, information technology and insurance, alternative and renewable energy, and life sciences, which include the areas of biotechnology, health care, and nursing technology. This fund has led to significant collaboration with Iowa’s business and industry to skill, reskill, and upskill Iowans to immediately enter the workforce.
|
Workforce Development Fund Appropriations History |
||
|---|---|---|
|
FY2017 |
$6,000,000 |
$3,000,000 allocated to apprenticeship program |
|
FY2018 |
$6,000,000 |
$3,000,000 allocated to apprenticeship program |
|
FY2019 |
$6,000,000 |
$3,000,000 allocated to apprenticeship program |
|
FY2020 |
$6,000,000 |
$3,000,000 allocated to apprenticeship program |
|
FY2021 |
$6,000,000 |
$3,000,000 allocated to apprenticeship program |
|
FY2022 |
$7,750,000 |
$3,000,000 allocated to apprenticeship program |
|
FY2023 |
$7,750,000 |
$3,000,000 allocated to apprenticeship program |
|
FY2024 |
$7,750,000 |
$3,000,000 allocated to apprenticeship program |
|
FY2025 |
$7,750,000 |
$3,000,000 allocated to apprenticeship program |
|
FY 2026 |
$7,750,000 |
$3,000,000 allocated to apprenticeship program |
Other Funds of Note
There are more appropriations that contribute to Iowa community colleges. The list shared below does not go into great detail because, at this time, these programs/funds serve more audiences than Iowa community colleges (such as our regent public universities, private colleges, and/or K-12 schools), or there have not been changes to the program in recent years requiring its history to be shared. These include:
-
State University Funding
-
Workforce Training and Economic Development Fund (WTED) (260C.18A)
-
Outcomes Reporting
-
Postsecondary Summer Classes for High School Students Program
-
Accelerated Career Education (ACE) Infrastructure Program (260G.6)
If you have any questions about Iowa community college appropriations or related legislation, please contact our staff.