Community colleges have historically operated on three primary sources of revenue: tuition and fees, local taxes, and state appropriations. Federal funding for community colleges is largely funneled through student financial aid for tuition and fees. While an area of ​​potential revenue growth, other revenue sources such as private donations, grants, and ancillary services represent a relatively small portion of community college budgets. Originally, community college funding was largely dependent on local funding with support from tuition and fees. State support for community colleges came on the scene in the 1940s. Over time, state-level funding has surpassed local community college funding, but tuition and fees have remained relatively constant as a percentage of revenue. According to Cohen, “the percentage of income from various sources for public two-year colleges in 2010 showed tuition and fees at 16 percent, federal funds at 23 percent, state funds at 30 percent, local funds at 18 percent, private donations and grants at 1%, sales and services at 4%, and other at 8%” (Cohen, Brawer, & Kisker, 2013). It is important to note that 23 percent of federal funds revenue in 2010 was the result of non-recurring economic stimulus funds and represented a significant increase in federal funding to community colleges compared to the more typical 5 to 8 percent of federal funding . While the figures above represent national averages, community college funding rates vary widely from state to state and depend on the organizational structure of community colleges within each state. Higher percentages of state-level funding exist in states with large community college systems, while some states are still structured around historical funding of greater local community community support. the number of full-time employees in favor of part-time employees, especially teachers; increase in student/teacher ratio; reductions on course offerings; reductions in student support services, especially those not essential to core missions; and many other measures aimed at improving efficiency. In addition to these efforts, community colleges are exploring ways to increase revenue streams through business ventures, expanded fundraising to include endowments, and practical options such as differentiated tuition. These alternative funding sources are likely to become critical to the financial stability of community colleges. According to Romano, it would be wise to “anticipate the continuation of the secular decline in public sources of revenue and prepare for growing cost pressures resulting from both rising enrollment and a growing cost structure” (Romano, 2012).