The Legislature has approved $854.4 million for Oregon’s Community College Support Fund (CCSF) in SB 5525 for the 2025–27 biennium — a 6.9% increase from the previous cycle but well below the $920 million needed to sustain programs, services, and rising student enrollment.

The Community College Support Fund (CCSF) cleared a major hurdle today (June 2, 2025) with the passage of SB 5525 in the Joint Subcommittee on Education. SB 5525 is the Higher Education Coordinating Commission’s (HECC’s) agency budget bill, which includes the CCSF to support community colleges. The Joint Subcommittee on Education approved a budget allocation of $854.4 million for the CCSF in SB 5525 for the 2025–27 biennium. This is a 6.9% increase over the amount legislatively approved to the CCSF for the 2023-25 biennium. However, while this amount reflects the Governor’s Recommended Budget (GRB), it falls well short of the $920 million community colleges identified as essential to cover the rising costs of educating students and maintaining essential programs and services for the next biennium.

The latest Oregon revenue forecast from the Office of Economic Analysis underscores the urgent need for increased investment in community colleges. While the forecast provides insight into the state’s economic outlook, it also highlights financial constraints that could impact essential educational programs. The Oregon Community College Association (OCCA) urges lawmakers to prioritize funding for community colleges to ensure students have access to affordable, high-quality education that meets workforce demands. State economists presented their quarterly economic and revenue forecast to legislators this morning (May 14), showing state revenues down $165.2 million from the previous forecast, with available resources down by $755.7 million. While slower growth in the state’s economy triggers heightened recession risk, state economists are less pessimistic about the chance of a recession with recent changes to tariffs at the national level. Economists predict the recession risk decreased from 40% just a few weeks ago to 25% today.