Most states fund their community colleges on a flat grant per pupil basis, though some allocate on an overall appropriation. Variations in district wealth are generally equalized by either full state support or state equalization of local tax-paying ability. Four models of state support are currently in operation: (1) negotiation of state support for community colleges on an annual or bi-annual basis, following no set formula; (2) a unit rate formula based on a workload unit such as credit hours or full-time equivalent (FTE) enrollment; (3) minimum foundation plans; and (4) cost-based program support, whereby state payment varies with program costs. A study was conducted to examine the relationship between state funding models and trends in national FTE enrollment rates and tuition and fees during the 1980's. The data show that the percent change per year in state appropriations has increased with the percent change per year in FTE enrollments. In response to the rising costs of operating community colleges and the fact that FTE enrollments do not bring in enough money to the college, tuition and fees also increased steadily. In turn, changes in tuition and fee policies affect students' willingness to enroll in community colleges. (AC)