Reporter’s notebook

State funding for higher ed cools

An annual report on state funding for higher education shows a slowing down in financial support over the past year after several years of robust growth. In addition, public two-year colleges saw a dip in their share of state funding.

In fiscal year (FY) 2026, state support increased 1.0% over the previous year, to $133.1 billion, according to the State Higher Education Executive Officers Association’s “Grapevine” data. This represents the smallest year-over-year boost since 2021, when state support increased by 0.6%. Between FY 2022 and 2025, year-over-year changes averaged 7.8%, thanks largely to federal stimulus funding responding to the Covid pandemic.

While 33 states reported increases in state support, ranging from 12.1% in Montana to 0.1% in Florida, 17 states and Washington, D.C., saw decreases in state support, ranging from -13.6% in Arizona to -1.6% in North Carolina, according to the report.

Of the total state support in FY 2026, 47.6% was allocated to operational support at public four-year institutions, while 20.9% supported operations at public two-year institutions. Financial aid accounted for 12.9% of state support, while research, agriculture and medical appropriations accounted for 10.8%, and an additional 7.8% was appropriated for other uses, which could include non-credit and continuing education appropriations or operational support to independent institutions and/or state agencies. In FY 2025, 21.4% went to public two-year colleges. From 2019 to 2025, the public two-year college share ranged from 20.5% for FY 2024 to 22.0% in FY 2022.

Arizona college expands its three-year degree program

Yavapai College is expanding its venture into three-year degrees by teaming with a Wisconsin technical college to offer a three-year bachelor of applied science in business (BASB) degree.

Last fall, the Arizona college became the first community college in the country to receive approval for a three-year, 92-credit BASB degree. That’s when Moraine Park Technical College reached out to Yavapai officials to discuss a partnership to offer the BASB program online.

Beginning April 1, Moraine Park students can enroll in an associate degree program with a business focus. After graduating, they can transfer to Yavapai to complete the BSAB via eight-week courses, according to a release.

“This articulation agreement with Moraine Park Technical College represents an innovative model for how institutions can strengthen transfer pathways and improve bachelor’s degree completion,” said Yavapai College President Lisa Rhine.

Yavapai was the first rural community college in Arizona to offer a baccalaureate when it launched its bachelor of science in business program in 2023. Since then, it has added a bachelor of science in nursing degree and a bachelor of science in computer science.

Stronger system connections in Connecticut

Two education systems in Connecticut are strengthening pathways for students transitioning from high school to community college.

The agreement signed last week between the Connecticut State Community College (CT State) and the Connecticut Technical Education and Career System will expand dual-enrollment opportunities, align curricula and prepares students for jobs in high-demand fields — including healthcare, information technology, manufacturing and hospitality — through activities, such as job shadowing, guest speakers, resume reviews, mock interviews, and internships or field experiences, according to CT State.

Students may also receive credit for prior learning through articulated high school courses, certifications and industry-recognized credentials. The program also offers exposure to community college business and entrepreneurship programs, providing students with the skills to launch small businesses.

About the Author

Matthew Dembicki
Matthew Dembicki edits Community College Daily and serves as associate vice president of communications for the American Association of Community Colleges.
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