Report Shows Higher Ed Spending Up, Despite Budget Issues (1/11/2008)

Last year proved to be a difficult year for states regarding budget concerns. As of now, 2008 is not looking any better. Many states of various sizes and locations are facing budget shortfalls and fiscal crises, forcing them to either keep education funding at current levels, or possibly consider serious education cuts. However, despite this disturbing trend, a report released by the Illinois State University Center for the Study of Education Policy shows that state spending on higher education is rising. Public college and university officials and employees are experiencing a good year, but other forecasts show that this could be very short lived.

State appropriations for higher education are up 7.5% for the 2008 fiscal year. This is the largest percentage increase for colleges and universities in a decade, according to the report. Total state support for higher education this year is currently projected to be over $77.5 billion. That number is based on state operating support, but it does not include funds for facilities or funds that are provided by students through tuition. Over the last decade, the percentage change in total state support has fallen as low as a 2.1% annual decrease, but has rebounded recently. However, other studies released in the last month, as well as grim budget forecasts in many states, suggest that this may be a peak year, with some troubled times ahead.

The recent increases in funding mirrors national concerns regarding both the increasing cost of higher education, and a focus on keeping American students competitive globally. However, as budget constraints become tighter, education is often one of the first areas to suffer stagnation and cuts. Unfortunately, current trends indicate that tighter times are ahead. A study by the National Governors Association and the National Association of State Budget Officers warns of “significant deterioration” of state budgets. The National Conference of State Legislatures also warns that there are rough fiscal waters ahead, so institutions of higher education may want to enjoy the good times now, while they still can.

Resources:
Scott Jaschik, “State Appropriations Are Up ... for Now,” Inside Higher Ed, January 11, 2008.
Author: SAS