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Report: Outdated Funding Law Hampers Community College Student Success

Dr. Larry Galizio, President & CEO of the Community College League of California.Dr. Larry Galizio, President & CEO of the Community College League of California.California's community colleges find themselves caught in a 60-year-old funding constraint that increasingly hampers their ability to serve today’s students, according to a new report from the Community College League of California.

The report, “Modernizing California Community College Funding: Reforming the Fifty Percent Law to Support Student Success," argues that the 1961 law requiring California's community colleges to spend at least half of their general funds on direct classroom instruction is outdated and prevents colleges from adequately funding critical student support services.

"Today's students—and today's workforce needs—require educational experiences that extend beyond the classroom," said Dr. Larry Galizio, President & CEO of the Community College League of California. "By modernizing the Fifty Percent Law, we can ensure that California's community colleges are empowered to meet the needs of today's learners and equip them for future success."

The landscape of higher education has changed dramatically since the Eisenhower-era statute was implemented. In 1961, college students were predominantly white, traditional-age students who attended full-time. Today, they're far more diverse—77% non-white—and face challenges unknown to previous generations. Nearly half are Pell Grant-eligible, and 68% experience at least one basic needs insecurity, with 24% self-identifying as homeless.

Technology that didn't exist when the law was drafted—computers, the internet, online learning platforms—now consumes significant portions of college budgets. Meanwhile, research increasingly shows that comprehensive support services like counseling, basic needs assistance, and mental health care directly impact student achievement, especially for historically underserved populations.

“The Fifty Percent Law might just be the single most damaging law to the success of our most at-risk students,” said Willy Duncan, Superintendent/President at Sierra College. “Research shows that it is critical to provide holistic support to our students if we are to help them be successful, and the 50 Percent Law hinders our ability to do it.”

The report notes that the original protections the law intended to provide—ensuring adequate investment in instruction—have largely been made redundant by other mechanisms, including faculty unions, the Faculty Obligation Number (which requires 75% of credit instruction be taught by full-time instructors), and the Student-Centered Funding Formula.

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