Drawing from journal, report, and monographic literature, this paper offers an analysis of community college funding in the 1990's. In the first section, various stories appearing in the "Chronicle of Higher Education" are highlighted, pointing to such financial problems as state deficits and shrinking educational budgets, no federal increases in higher education funding, lay-offs and deteriorating employment conditions on campus, and state-level budget cuts to systems of higher education. The next section looks at factors affecting access to education, including problems such as tuition increases and economic turndowns. After noting patterns in the states' economies and appropriations for higher education, the paper addresses the overall downward turn in revenues earned from state lotteries, now functioning in 31 states. Next, the competitors for state funds are identified as education, health care, and the criminal justice system, and it is recommended that all segments of education develop a unified front in order to compete for scarce resources, rather than competing with one another. The next section looks at trends in funding from local, state, and federal taxes, indicating that the states have become the primary providers of financial resources for the community colleges. The use of funding formulas for state appropriations is discussed next, and issues related to the impact of enrollment declines on enrollment-driven formulas, quality incentives, and regional variations are noted. Finally, concluding comments discuss the manner in which financial limitations are affecting every segment of education. A 26-item bibliography is included. (PAA)