Performance-based funding (PBF) policies with research incentives have grown in popularity over the years despite little understanding regarding whether they actually work. This study leverages a novel national data set to examine the impact of PBF research incentives on the research expenditures and total state appropriations among public 4-year…

Despite occupying a central position in contemporary U.S. higher education discourse, empirical research on administrative costs is limited. The purpose of this study was to extend existing research on administrative spending in higher education by empirically examining whether recently shifting to research university status in the Carnegie…

Between 2000 and 2010, U.S. public colleges and universities experienced widespread and uneven changes in funding from state and local appropriations. We find that over this period annual decreases in statewide appropriations led to lower public enrollment and higher for-profit enrollment (with no effect on enrollment overall), as well as…

While state appropriations are the largest revenue source of the U.S. public university systems, they have declined significantly over the past several decades. Surprisingly, there is little empirical work on the effect of state appropriation cuts on the research productivity of public universities. Helping fill that gap, this paper is the first…

How did State U. get so expensive? A leading culprit is reduced state support. Since 1987, the typical student at a public college or university has seen the government subsidy for her education drop by $2,337, or roughly one quarter. And in prior research, the author found that every $1,000 in state divestment leads colleges to raise tuition by…

The 2020 General Assembly directed the State Council of Higher Education for Virginia (SCHEV) to develop a plan for implementing a statewide survey of institutional expenditures by program and academic discipline at Virginia's public higher education institutions, and submit a report and recommendations to the Governor and the Chairs of the House…

Public higher education produces many benefits that are vital to the New England economy, but it is increasingly at risk following years of state budget cuts. In 2017 in New England, real per-student state funding for higher education was lower than it was in 2008, with a double-digit decline in each of the region's states except Maine. States…

In aggregate, state appropriations are the largest revenue source for public higher education in the United States. However, these appropriations have significantly declined over past decades, drawing serious concerns about the potential negative impact on schools and students. This paper provides a more comprehensive study of the effects of state…

After years of slow erosion of funding and enrollment, higher education in Wisconsin faces a flash flood. Financial challenges had been accumulating for the state's public colleges and universities, brought on by stagnant state funding, a tuition freeze, and declining enrollment. Now COVID-19 threatens to wash away key pieces of this system,…

After years of slow erosion of funding and enrollment, higher education in Wisconsin faces a flash flood. Financial challenges had been accumulating for the state's public colleges and universities, brought on by a tuition freeze, stagnant state funding, and demographic trends. Now COVID-19 threatens to wash away key pieces of a system that will…

At $14 billion, the investment in operating support for higher education institutions from the coronavirus relief bill, the Coronavirus Aid, Relief, and Economic Security (CARES) Act, is the largest one-year federal infusion of funds going straight to colleges since the Great Recession. Yet it's nowhere close to enough. Many states have already…

This publication provides governmental and higher education decision-makers a statewide perspective of Arkansas public higher education finance for the 2021-23 biennium, as well as trends for the past several years. It also contains a detailed financial profile of each institution and presents a basis for comparative assessments of revenue sources…

State-level performance-based funding (PBF) policies are an increasingly common way to allocate funds to public colleges and universities. While a growing body of research has examined whether these policies are effective in improving student outcomes, little is known about how colleges respond to PBF policies. In this paper, we examine whether…

Public universities typically charge students less than the full cost of education, using funds from state and local government and other sources to cover the difference. This indirect subsidy is one of the largest forms of aid in America's higher education system but is less understood in the policy community than grants and loans, which are…

This publication provides governmental and higher education decision-makers a statewide perspective of Arkansas public higher education finance for the 2019-21 biennium, as well as trends for the past several years. It also contains a detailed financial profile of each institution and presents a basis for comparative assessments of revenue sources…