How State Funding Models Shape Enrollment in Non-Credit Workforce Training

Policymakers often highlight non-credit workforce training programs at community colleges as a promising way to develop a strong workforce. Many students agree. Approximately four million students enroll in noncredit programs at community colleges nationwide.

However, data on the number of these programs, who they serve, and how well they perform is very limited. For instance, the number four million comes from an American Association of Community Colleges analysis of its membership database. The federal government currently does not collect enrollment or outcomes data on non-credit students, partially because it does not provide financial aid for these programs.

That is why new Richmond Federal Reserve Bank data is so interesting. Their collection of data across five states found that participants in non-credit workforce programs were older and much more likely to be male. They also found higher levels of non-credit enrollment in states that have more robust state funding for non-credit community college education.

About the Data

Since 2020, the Federal Reserve Bank of Richmond—which serves South Carolina, North Carolina, Virginia, Maryland, most of West Virginia, and Washington, D.C.—has engaged in extensive data efforts with community colleges across its region. They collected the non-credit data from these colleges with a unified definition to compare them across states. The Richmond Fed defined non-credit workforce programs as courses or programs resulting in a recognized certificate, licensure, or eligibility to earn such credentials. These programs exclude lifestyle-focused continuing education, ESL-only courses, or courses that do not lead to workforce-related awards or credentials. In most states, this criteria cut the non-credit enrollment in half.

Enrollment in Non-Credit Workforce programs and State Funding

There is a clear pattern around enrollment and how states fund these programs. Generally speaking, the better (and more predictably) the state funds workforce non-credit in its college funding formulas, the more students participate in non-credit workforce training programs. States with the highest numbers of non-credit workforce participants compared to their populations also tend to have the most stable and robust funding streams (see Figure 1).

Maryland and North Carolina fund their non-credit workforce programs through community or technical college funding models. This means they pay each college per student, with Maryland funding workforce non-credit programs at par with credit programs and North Carolina funding non-credit at slightly lower levels overall. In South Carolina, state appropriations are not determined through a specific funding formula. Still, the state uses a formula to determine what share of the state appropriations each school should receive. Workforce non-credit programs in South Carolina are funded at half the rate of credit programs via this formula. These states provide community colleges and students with broad annual support and also have the most robust participation in their non-credit workforce programs. Knowing how much state money each enrollment will generate makes it easier for colleges in these states to predict where the funding will come from to sustain their programs and give them a reliable way to cover costs. South Carolina has also created additional grants to pay student tuition for these programs. SC-WINS provides up to $5,000 a year for students in eligible programs. Maryland is also unique because their ‘free’ community college initiative, Maryland Promise, allows students to use these dollars for eligible non-credit programs, unlike similar scholarships in other states.

On the other hand, Virginia and West Virginia do not fund non-credit directly. Instead, each state pieces together different scholarship programs to support these efforts.

Virginia runs a program called FastForward, which covers part of the cost of noncredit workforce training in high-demand fields through a pay-for-performance model. Students pay one-third of the program cost upfront, which can be covered by third-party funds. The state reimburses an additional one-third upon program completion (up to $1,500), and institutions receive the final third if students earn a workforce credential, with a maximum institutional award of $3,000 per student. Community colleges must go through an application process to have a non-credit program approved as FastForward eligible, and many non-credit programs remain unapproved. This can be because the program doesn’t meet the FastForward standards or because the college chooses not to go through the application process. Unsurprisingly, this complicated and limited program has not yielded a high enrollment in Virginia’s noncredit workforce programs.

West Virginia has a non-credit scholarship program called Higher Education Adult Part-Time Student (HEAPS) that supports $2000 for Pell-eligible students. While West Virginia is working to include non-credit workforce funding in its outcomes-based funding formula, that policy is still being implemented. The state has also lagged in non-credit workforce enrollment.

Figure 1

Source of population data: State Population Totals: 2020-2023

Demographic Trends

The Richmond Fed data also allow us to dig deeper into the demographics: These workforce programs disproportionately serve older men. In all five states, men outnumbered women in non-credit programs. This is remarkable, given that in credit programs, women dominate. Both men and women enrolled in these programs are much more likely to be over 25 than credit-seeking students. This indicates that participants are more likely to be incumbent workers or career changers. Few younger students are taking these courses to enter the workforce.

Conclusions and Policy Implications

Non-credit workforce programs at community colleges can be tools for building a skilled labor force, offering opportunities for older adults and career changers. They are also critical for supporting economic development around industries states wish to grow.

For example, North Carolina was the only state in the nation to be awarded two Regional Innovation Engines grants by the U.S. National Science Foundation (NSF). Authorized under the CHIPS and Science Act and announced by the White House at Forsyth Tech Community College last January, NSF Engines are consortiums of higher education institutions, employers, state agencies, and economic development groups to promote economic development around emerging industries. New America research has found that community college workforce partnerships are key to the success of these investments. Non-credit funding gives states’ economic development efforts a competitive edge by affording the Engine’s community college partners the flexibility to quickly stand up workforce programs that meet the complex and evolving needs of the biotechnology industry the Engine is working to grow.

The reach of non-credit programs seems to be tied to how states fund these programs. The Richmond Fed’s data highlights the need for robust, predictable funding mechanisms to maximize the impact of non-credit workforce programs. With better data and more consistent funding, these programs could play a greater role in meeting workforce demands and advancing economic mobility.