Funding Shortfalls and Future Skills Gaps Are Colliding at Rural Community Colleges

Funding Shortfalls and Future Skills Gaps Are Colliding at Rural Community Colleges Main Photo

22 Sep 2025


Education and Research

By Joe April — Examining the tough challenges rural community colleges face with fewer resources and the need for smart investment to close the skills gap.

Underfunded. Understaffed. Expected to do more.

Rural community colleges are at the center of workforce development in their regions. Still, they're being asked to drive economic recovery and meet labor market demands with fewer resources, fewer personnel, and fewer dollars. That gap is widening, and it's putting long-term community and economic outcomes at risk.

The challenges facing these institutions are not cyclical. They're structural.
And if they aren't addressed strategically and systemically, rural regions will fall further behind in preparing talent for the jobs they already have, let alone the ones they hope to attract.

Public Funding Isn't Keeping Pace with Program Costs

Rural community colleges face a fundamental math problem. The cost to deliver critical programs, nursing, welding, and electrical trades is nearly the same regardless of size. But low enrollment, a limited tax base, and declining state and federal investment make program delivery unsustainable.

In some states, per-student funding has dropped by over 30%. That's forcing institutions to rely on one-time federal relief dollars to cover recurring operational gaps. Those funds are running out. Without a new plan, so will the programs.

Shrinking Populations Are Draining Enrollment Pipelines

Enrollment drops are accelerating in many rural community colleges. Aging populations and the outmigration of working-age adults reduce both potential student headcount and the local workforce. This shrinking base hits colleges twice: first, by lowering tuition revenue, and second, by forcing hard decisions about program cuts. Those cuts weaken the college's value proposition to both students and employers.

Digital Access and Infrastructure Are Holding Programs Back

Most rural campuses operate in aging buildings with limited access to modern equipment or broadband. Students training for advanced manufacturing careers often lack exposure to the very technologies they will use in the field. That disconnect creates learning gaps that rural employers can't afford.

While federal digital equity programs offer some relief, rural community colleges can't depend on long-term infrastructure improvements from short-term grant cycles, especially when political opposition threatens future funding.

Programs Aren't Aligned with Local Workforce Needs

The misalignment between available programs and employer demand is growing. Many rural community colleges struggle to update programs quickly enough to match evolving labor market requirements. Others face challenges in maintaining existing employer partnerships or launching new ones.

When students graduate with credentials that don't match job openings, both they and the local economy lose. Closing this gap requires stronger capacity and consistent industry engagement—something that most rural institutions are not well-resourced to achieve or sustain at scale.

Staffing Shortages Limit Access to Outside Funding

Applying for state and federal grants is often equivalent to taking on a second full-time job. However, most rural community colleges lack a grant writer, let alone a full-time development team. The same individuals who teach, advise, and run programs are also tasked with pursuing millions of dollars in competitive funding, often without adequate training, sufficient time, or strategic support.

These shortages limit access to critical funds that could expand technical programs, modernize labs, or provide wraparound services for students who need them most.

Rural Institutions Need More Than Operational Relief

Most public dollars support operational costs. They do not address long-term needs, such as staffing, capital upgrades, or major student support systems. To address these issues, rural community colleges must adopt a different approach. That's where Convergent Nonprofit Solutions comes in.

Campaign Strategy Built for Rural Community Colleges

Convergent helps rural community colleges design and execute capital and comprehensive campaigns that secure long-term investments. These aren't donation drives. They are strategic initiatives built on measurable outcomes and a clear return on investment for funders.
Our Investment-Driven Model™ shifts the focus from storytelling to data-backed performance. That difference matters when seeking support from business leaders, foundations, or public entities who want to know what their investment will produce.

From campaign design to stakeholder engagement, Convergent brings a team with deep experience in education, economic development, and rural markets. The firm understands how to build compelling funding cases even in small communities with limited donor pools.

Download the Full Whitepaper to See What's Working

Rural community colleges can't afford to keep waiting for public investment to catch up. Download the whitepaper to explore how other colleges are navigating these challenges and how Convergent is helping them build the strategic capacity to lead regional workforce development efforts in the long term.

About The Author

Dr. John Rainone's Profile Photo

Dr. John Rainone

Senior Counsel

Department: Team

On July 8, 2013, Dr. John J. Rainone became the fourth president of Mountain Gateway Community College. He brings over 35 years of experience as a teacher, administrator, and chief executive officer to this College.

Dr. Rainone received his bachelor’s and master’s degrees from Southern New Hampshire University and earned a doctoral degree from Nova Southeastern University. He is a first-generation college student and the first member of his family to earn an advanced degree. He is also a graduate of the League for Innovation Executive Institute and completed the Harvard University Seminar for First-Year Presidents.

A native of Providence, Rhode Island, he served in business and education as the training and education administrator for the New Hampshire Technical College at Manchester. He was on the founding team to build the newly created York County Community College (Maine) where he served the college for 18 years in various senior-level positions in workforce development, academic affairs, finance, and institutional advancement.

A passion of Dr. Rainone’s is teaching, and he brings over 33 years as an adjunct faculty member at the undergraduate and graduate levels in the areas of business research methods, teaching at the college level, nonprofit management, organizational behavior and leadership and fundraising and development.

Dr. Rainone serves as the Immediate Past-Chair of the Rural Community College Alliance Board of Directors and has served as a Board of Director for the American Association of Community Colleges (AACC), Chair of the Commission on Small and Rural Colleges, and a member of AACC's Task Force on Apprenticeships. He is the immediate past Chief Volunteer Officer for the Alleghany YMCA, and immediate past Chair of the Alleghany Highlands Chamber of Commerce & Tourism. He is a member of the Western Virginia Workforce Board, Virginia Foundation for Community College Education, Valley Innovations Council, Roanoke Regional Partnership, Alleghany Highlands Economic Development Corporation, and the Roanoke Valley-Alleghany Planning Commission. He is also the past Chair of the Board for Lewis-Gale Hospital Alleghany, is an honorary board member of the Historic Masonic Theatre, and a 25-year member of Rotary International. Rainone also serves as the Virginia Community College Statewide Chair for Phi Theta Kappa International (PTK) Society.

In 2016, Dr. Rainone was awarded the “Emerging Leadership” Award from AACC as well as received the “Giving Back” Diversity Leadership Award from Insight into Diversity magazine. In 2021, Rainone was named "Entrepreneurial President of the Year" by the National Association for Community College Entrepreneurship.

In addition, he received the Alumni Distinguished Service Award from Southern New Hampshire University, was recognized by the Seacoast (Maine and New Hampshire) Media Group as a “Mover and Shaker”, and as the Rotarian of the Decade by Rotary District 7780. In addition, Rainone has raised over $60 million in his career as a chief advancement officer and executive.

He is an honorary member of PTK and has held the distinction of being a Certified Fundraising Executive (CFRE) since 2007.