With a 30-percent increase in enrollment since the start of this economic downturn, Salt Lake Community College in Utah is on a path of unprecedented growth. Unfortunately, state financial support is moving in the opposite direction, with a cut approaching 17 percent.

 “I’m scared to forecast enrollment for the future,” said Joy Tlou, a spokesman for the regional institution serving more than 24,000 students. “There are people returning to school because of work force changes and layoffs. We may have some tough decisions to make.”

 Salt Lake’s example is increasingly common among community colleges, many of which are experiencing steady enrollment increases during the recession while receiving less state money. One potential bright spot, however, was President Barack Obama’s American Graduation Initiative (AGI). Unveiled last year, the plan called for $12 billion for community colleges, including a Community College Challenge Fund to develop new or improved programs, grants to modernize facilities and funding to offer more online coursework.

 AGI was part of the Student Aid and Fiscal Responsibility Act (SAFRA), which passed the House of Representatives late last year. But the measure never made it intact to the Senate floor. And, while many SAFRA provisions are now in a massive budget reconciliation bill along with health care reform, lawmakers struck out AGI to meet budget targets. Lawmakers did provide $2 billion in other community college aid, but it was less than many had hoped.

 “We were quite excited when we heard about the president’s [AGI] initiative,” Tlou said. “We’ve been waiting like everyone else.”

 The graduation initiative’s demise was due largely to financial pressures on the SAFRA bill, which was to increase higher education and Pell Grant investments by eliminating student loan subsidies to banks and requiring colleges to use cheaper government-issued Direct Loans. But many colleges began moving to Direct Loans even as SAFRA moved through Congress, cutting the potential savings.