This paper addresses the current context and general trends in community college financing. Financing of community colleges is becoming increasingly based on contracted government and private programs, as operating funds from state and local tax coffers decrease. More and more, students are being asked to pick up a larger portion of the tab. Previously, student borrowing of federal loans for community colleges was relatively small. By 1996, community college students borrowed more than $1.5 billion in federal loans. Some of the factors that influence institutional revenues and student financing are: shifting government policies and priorities; growing demands from consumers; and an evolving relationship with employers who rely on community colleges to supply them with skilled workers. As four-year institutions continue to limit remedial enrollments, community colleges will have an even greater burden for providing remedial education. The costs of providing remedial education are not fully understood. However, community colleges which receive the least state and federal funds are expected to educate a much larger number of students in need of remedial education. This paper provides useful statistics in the form of tables and figures, as well as a detailed discussion of federal funding programs and recommendations for states and community colleges. (Contains 24 references.) (AF)