Tax reduction and limitation of government spending issues dominated the November 1978 state and national elections. What effect the propositions will have on community college financing will not be known for some time. Three principal sources of college revenue--property tax, state appropriations, tuition and fees--account for most of the funds in the categories of capital outlay financing and current operating financing. The manner in which state funds are allocated offers four funding alternatives: negotiated budget, unit rate formula, minimum foundation or equalization, or cost-based program. Whatever the funding pattern, the amount of money allocated is related to the number of full-time student or faculty equivalents or the number of student credit hours. In recent years legislators and governors have placed limits on the amount allocated to colleges. Especially unfortunate consequences were seen in the curtailing of non-credit courses; loss of local autonomy; decrease in the number of locally-supported colleges; lessened commitment to the Open Door policy; and increases in tuition and fees. A positive effect is the increased concern with educational mission and function, and with governance. A bibliography is included. (AYC)