Can Community Colleges Afford to Improve Completion? Measuring the Cost and Efficiency Consequences of Reform

Abstract

Community colleges are under pressure to improve completion rates and efficiency despite limited economic evidence on how to do so and the consequences of different reform strategies. Here, we set out an economic model of student course pathways linked to college expenditures and revenues. Using detailed data from a single college, we calculate baseline efficiency and differences in efficiency for students who follow different pathways. We simulate changes in output, expenditures, revenues, net revenues, and efficiency assuming that the college meets performance targets. We find substantial differences in efficiency across pathways and significant differences in efficiency across strategies to help students complete college. The model has wide practical application for community colleges.