Performance funding policies for higher education allocate appropriations to public institutions based on student outcomes such as degree completions. This study investigates whether a special science, technology, engineering, and mathematics (STEM) incentive in 13 state performance funding policies leads to greater undergraduate degree…

With the cost of student debt surpassing credit card debt, those students who default on their student loans are not only affected but the colleges and universities they attended are affected as well. The purpose of this study is to compare default rates before and after the amendment to the Higher Education Act of 2008. This study will identify…

Data in this report reflect responses from 64 four-year public institutions that collectively enroll approximately 718,149 undergraduate students (according to data reported to the Integrated Postsecondary Education Data System (IPEDS)). Respondents participated in the Ruffalo Noel Levitz (RNL) national electronic poll of "Effective Practices…

Performance funding in higher education is intended to incentivize increased degree production at American colleges and universities by linking state funds directly to institutional outcomes. However, many critics suggest that such funding arrangements create systems of "winners and losers" by rewarding some institutions over others.…

According to the theory of Effectively Maintained Inequality (EMI), economically advantaged individuals not only enter each level of education at higher rates than do their less advantaged peers, but also enjoy qualitative advantages at each level that position them more favorably to continue to the next level. Governments may play a role in…

This study utilizes an extensive panel data set spanning 15 years (2004-2018) and 752 public community colleges to investigate operating costs and persistent cost efficiency at public community colleges in the United States. We employ a generalized true random effects (GTRE) regression model that takes into account spatial correlation of costs…

In 2008 it was certain that the Great Recession would represent--for this generation--the singular reordering of higher education. As a result, it was assumed that colleges and universities would be forced to become vastly more efficient places by graduating more students with high-value certificates and degrees. Despite significant cuts to higher…

The COVID-19 pandemic has no real historical precedent, and higher education institutions started school in very unusual circumstances in the fall of 2020. In this environment, it is useful to look at the short-term impacts of recent crises for lessons. This article briefly reviews data on enrollment and funding of public institutions from two…

Michigan's public higher education institutions have seen decades of decline in per-student funding, leaving students to face costs that are simply out of reach. The state, for the most part, relies on institutions to provide aid to bring down costs for students at four-year institutions, rather than providing students with aid directly via state…

Commonfund Higher Education Price Index® (HEPI) data show that costs for colleges and universities rose 4.0 percent in FY2023, a decreased rate of inflation compared with 5.2 percent in FY2022 and up from 2.7 percent in FY2021. (FY2023 covers the period from July 1, 2022, to June 30, 2023, and coincides with the budget year of most institutions of…

The COVID pandemic has transformed American higher education in ways that have yet to be fully comprehended. The abrupt shift toward online instruction was the first reaction to the growing threat of COVID. The effects of this shift were far-reaching. Specifically, this realignment to online delivery models created new links between or among…

Using well-defined notions of region, panel data, and an econometric approach suited to estimating parameter coefficients on time-invariant regressors, this study finds that region is a highly influential factor for state-level public higher education prices even after controlling for other well-known drivers. Additionally, prices track the…

The purpose of this study was to determine if a decentralized budget system, such as a Responsibility Center Management (RCM) system, improves a university's key performance indicators (KPIs), specifically, operating revenue, tuition revenue, contracts and grants revenue, and operating expenses. There are limited empirical studies that examine…

The State Higher Education Finance (SHEF) report is produced annually by the State Higher Education Executive Officers Association (SHEEO) to broaden understanding of the context and consequences of public policy decisions in each state that contribute to public higher education funding levels and funding distributions across states and…

Since 2003, the State Higher Education Executive Officers Association (SHEEO) has produced the annual State Higher Education Finance (SHEF) report to broaden understanding and enable analysis of state-level and national funding and enrollment trends over time. The final section in each SHEF report has focused on the effort and capacity of states…