An examination of McLennan Community College data over the past decade offers a good example of an institution that has faced challenges of rising enrollment and declining funding state, while maintaining indicators of quality and financial stability. As with most community colleges, the primary sources of revenue for MCC are tuition and fees, state appropriations and local taxes, as well as heavy use of federal funds. Similar to national trends, state funding for the MCC has plummeted from about 75 percent of total revenue in the late 1970s to about 25 percent of total revenue in 2012-2013. To combat the loss of revenue, the percentage of revenue coming from tuition has increased from about 10% to nearly 50% over the same period, while the percentage of revenue coming from local taxes has increased from about 10% to slightly more by 20%. Compared to Texas State averages for other community colleges, MCC is in the bottom quartile with its maintenance and operating tax rate, but has the second-highest district-level enrollment rate in the state. (Institutional Dashboard, 2014) Although the average net price of attendance for McLennan Community College students is well above the median measure for a self-selected peer group, the percentage of students receiving grants is also well above the measure median for the peer group (National Center for Education Statistics, 2014). This data supports the theory that institutions can offset losses in state funding by increasing revenue through substantial tuition increases as long as the percentage of students receiving financial aid parallels increases in the net price of attendance. The percentage of institutions in total expenses related to student services (4.8%), institutional support... halfway through the document..., but did not reach the thresholds established for the primary reserve and the vitality coefficient. Using the Composite Financial Index (CFI) as an overall calculation of financial health, however, the MCC met the established state threshold for stability (Table 1.1) (Texas Higher Education Coordinating Board, 2012). According to the CBC (p. 20), the Composite Financial Index (CFI) “measures the overall health of an institution by combining four indices into a single metric. The four main ratios include return on equity, operating margin, primary reserve and vitality ratio... The calculation process is taken directly from the KPMG publication, Strategic Financial Analysis for Higher Education... A CFI less than 2 ,0 calls into question the institution's ability to execute existing programs and effectively position itself for future success” (Texas Higher Education Coordinating Board, 2012).