A review of McLennan Community College data over the past ten years provides a good example of an institution that has met the challenges of increasing enrollment and reduction of public funding while maintaining indicators of financial quality and stability. As with most community colleges, MCC's primary sources of revenue are tuition, state appropriations and local taxes, as well as a heavy use of federal funds. Similar to national trends, state funding for MCC fell from about 75 percent of total revenues in the late 1970s to about 25 percent of total revenues in 2012-13. To compensate for the loss of revenue, the percentage of revenue from tuition fees increased from around 10% to almost 50% during the same period, while the percentage of revenue from local taxes increased from around 10% to just over 20%. Compared to Texas state averages for other community colleges, MCC is in the bottom quartile with its maintenance and operations tax rate, but represents the second highest tuition rate in the district. 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 grant funding is also well above the median metric for a self-selected peer group. higher than the median measure for the peer group. (National Center for Education Statistics, 2014). This data supports the theory that institutions can offset losses in public funding by increasing revenue through substantial increases in tuition, provided that the percentage of students receiving financial aid parallels the increase in price net of attendance. The percentage of total institutional expenditures related to student services (4.8%), institutional support... middle of document ......, but did not meet the thresholds established for the first reserve and the ratio of viability. However, using the Composite Financial Index (CFI) as an overall calculation of financial health, MCC met the stability threshold established by the state (Table 1.1) (Texas Higher Education Coordinating Board, 2012). According to THECB (p. 20), the Composite Financial Index (CFI) “measures the overall health of an institution by combining four ratios into a single measure. The four basic ratios include return on net assets, operating margin, primary reserve and viability 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 carry out existing programs and effectively position itself for future success” (Texas Higher Education Coordinating Board, 2012).