Resources are better spent when students persist and achive an associate's degree and transfer. Community colleges are locally funded; student tuition and local taxes account for the majority of revenue.
Students who take developmental courses are more likely to persist in college if they progress to college-level courses in a reasonable length of time.
Students who are well-prepared for college-level courses are more likely to succeed in their associate's degree program.
SOURCES:
Cohen, A.M. and Brawer, F.B. (2003). The American Community College (4th ed.). San Franciscon: Jossey-Bass.
Illich, P., Hagan, C., and McCallister, L. (2004). Performance in college level courses among students currently enrolled in remedial courses: policy implications. Community College Journal of Research and Practice, 28, 435-453.