27

State Higher Education Executive Officers Association. (2021). Investigating the impacts of state higher education appropriations and financial aid. Forthcoming.

12 State Effort

State Higher Education Executive Officers Association. (2021). Investigating the impacts of state higher education appropriations and financial aid. Forthcoming.

11 State Effort

Higher education support is defined as state and local tax and non-tax support for public and independent higher education, including special purpose appropriations for research, agriculture and medical education.

10 State Effort

Trostel, P.A., & Ronca, J.M. (2009). A simple unifying measure of state support for postsecondary education. Research in Higher Education, 50(3), 215-247.

9 State Effort

Higher education support includes federal stimulus funding from the American Recovery and Reinvestment Act (ARRA) allocated to higher education by states in the years during and following the Great Recession.

8 State Effort

Hindi, S. (2020, November 3). Colorado Prop 116 results: Voters approve state income tax cut. Denver Post. https://www.denverpost.com/2020/11/03/colorado-pop-116-results-income-tax/

7 State Effort

James, F. J., & Wallis, A. (2004). Tax and spending limits in Colorado. Public Budgeting & Finance, 24(4), 16-33.

6 State Effort

Education appropriations measure state and local support for public higher education operating expenses and exclude research, hospitals, and medical education. Unlike in the main SHEF report, education appropriations per FTE in this report are not adjusted for enrollment mix or cost of living differences across states.

5 State Effort

For more information on the factors affecting state taxation and budget decisions, please see the SHEF issue brief on this topic Weeden, D.D. (2019). State higher education finance issue brief: State budget drivers: Slow revenue growth and increased expenditure completion. State Higher Education Executive Officers Association. https://shef.sheeo.org/wp-content/uploads/2020/04/SHEEO_SHEF_FY18_IB_Budget_Drivers.pdf

4 State Effort

Russo, B. (2010). Is past prologue? Prospects for state and local sales tax bases. Applied Economics 42, 2261- 2274.

3 State Effort

U.S. Department of the Treasury. (2002). Treasury methodology for estimating total taxable resources (TTR). https://home.treasury.gov/system/files/226/nmpubsum.pdf

2 State Effort

U.S. Department of the Treasury. (2002). Treasury methodology for estimating total taxable resources (TTR). https://home.treasury.gov/system/files/226/nmpubsum.pdf

1 State Effort

Tandberg, D.A., & Laderman, S.A. (2018). Evaluating state funding effort for higher education. MHEC Policy Brief. https://www.mhec.org/sites/default/files/resources/mhec_affordability_series6.pdf

NASSGAP

National Association of State Student Grant Aid Programs. (2020). Annual survey report on state-sponsored student financial aid. https://www.nassgapsurvey.com/survey_reports/2018-2019-50th.pdf

2021 Funding

Laderman, S., & Tandberg, D. (2021). SHEEO analysis of fiscal year 2021 state funding for higher education. State Higher Education Executive Officers Association. https://sheeo.org/wp-content/uploads/2021/03/SHEEO_Analysis_FiscalYear2021_State_Funding.pdf

Balance Wheel

During previous economic recessions, states have disproportionately cut funding to higher education in order to balance their budgets. For more information, see Delaney, J., & Doyle, W. (2011). State spending on higher education: Testing the balance wheel over time. Journal of Education Finance, 36(4). http://www.jstor.org/stable/23018116

28

Florida Statutes. Title XLVIII. K-20 Education Code. Ch. 1009. Educational Scholarships, Fees, and Financial Assistance. (2020)
. http://www.leg.state.fl.us/Statutes/index.cfm?App_mode=Display_Statute&URL=1000-1099/1009/1009.html

26

Pennsylvania’s fiscal year 2020 net tuition revenue is an estimate and subject to change.

25

Overall, 3% of state public financial aid was uncategorizable. Thirty-two states were able to classify all state public financial aid by sector and listed no uncategorizable aid. In six states, more than 5% of aid could not be classified by sector: West Virginia (12.2%), Maryland (13.4%), Colorado (13.7%), Pennsylvania, (19.7%), Michigan (20.9%), and Alabama (90.0%).

24

Michigan reported $5.2 million in state public financial aid in 2020. However, their state financial aid programs also received $130.8 million in federal dollars from Temporary Assistance for Needy Families (TANF). Other states, like California, also use TANF for state financial aid programs; these funds are not included in SHEF education appropriations.

23

See the State Spotlight on Illinois for additional information about this increase.

22

In 2019, only nine states had reached pre-recession levels in education appropriations.

21

National Bureau of Economic Research. (2020). Determination of the February 2020 peak in U.S. economic activity. https://www.nber.org/news/business-cycle-dating-committee-announcement-june-8-2020

20

The low two-year enrollment in Nevada is due to the Carnegie Basic Classification, which lists all but one Nevada community college as a four-year institution.

19

As the following sections will show, two-year and four-year public institutions have very different revenue structures and total revenues. As a result, when states differ in the proportion of their students attending each sector, their state-level data become more difficult to compare. The Enrollment Mix Index (EMI) adjustment used throughout the state-level metrics in this report attempts to correct for this variation in FTE enrollment. Sector-level data are not adjusted for EMI.

18

Trends in state-funded student financial aid for students attending public institutions differ substantially from trends in aid for students attending independent institutions. The composition of state financial aid has also changed over time. For more information, the 2019 SHEF Issue Brief on state financial aid explores trends over time in state financial aid to public and private institutions by state.

17

According to the National Center for Education Statistics, in fall 2020, an estimated 37% of two-year students (at both public and private institutions) attended full-time, compared to 75% at four-year institutions. Source: Table 303.70, https://nces.ed.gov/programs/digest/d19/tables/dt19_303.70.asp

16

There are two differences in education appropriations between the state and sector levels. The state-level data include agency funding and federal stimulus funds, while sector-level data do not. In a few states, some uncategorizable state support and uncategorizable financial aid are not allocated to either sector.

15

For more information about the expected impacts of the COVID-19 pandemic and economic recession on higher education funding, see the SHEEO analysis of early fiscal year 2021 funding: https://sheeo.org/wp-content/uploads/2021/03/SHEEO_Analysis_FiscalYear2021_State_Funding.pdf.

14

The Great Recession led to dramatic changes in the way public institutions finance higher education. The 2019 SHEF Issue Brief on post-recession trends provides an analysis of how well states have recovered from the Great Recession. We consider the depth of cuts in state funding, recovery of total education revenue and the sources of that recovery, and state financial aid changes.

13

Delaney, J., & Doyle, W. (2011). State spending on higher education: Testing the balance wheel over time.
Journal of Education Finance, 36(4). http://www.jstor.org/stable/23018116

12

Net tuition revenue declines are generally due to increases in state-funded financial aid, declines in enrollment, and/or declines in the proportion of students paying higher rates of tuition, like out-of-state or international students.

11

It is important to note that the U.S. totals are not averages of state averages. For example, “U.S. total education appropriations per FTE” is the sum of all education appropriations divided by the sum of all net FTE across the 50 states. It is not the average of each of the 50 states’ individual per-FTE calculations.

10

Arizona Joint Budget Committee. (2018). Arizona community colleges general fund appropriations: FY 2010 through FY 2019. https://www.azleg.gov/jlbc/accgfapp.pdf

9

In Washington D.C., district taxes are considered state tax appropriations, not local support.

8

Federal stimulus funding is provided to state governments to stabilize state and local sources of revenue for higher education and includes funds from the American Recovery and Reinvestment Act (ARRA) during the Great Recession and the Coronavirus Aid, Relief, and Economic Security (CARES) Act in 2020. The federal stimulus must be state-allocated and excludes aid provided directly to institutions.

7

Delaney, J., & Doyle, W. (2011). State spending on higher education: Testing the balance wheel over time.
Journal of Education Finance, 36(4). http://www.jstor.org/stable/23018116

6

Unlike the SHEF data, NASBO expenditures exclude employer contributions to pensions and health benefits.

5

National Association of State Budget Officers. (2020). State expenditure report: Fiscal years 2018-2020.
https://www.nasbo.org/reports-data/state-expenditure-report

4

National Student Clearinghouse Research Center. (2021). High school benchmarks COVID-9 special analysis update & correction. https://nscresearchcenter.org/wp-content/uploads/2021_HSBenchmarksCovidReport.pdf

3

National Student Clearinghouse Research Center. (2021). Spring 2021 enrollment (as of Feb 11). https://nscresearchcenter.org/stay-informed/

2

National Student Clearinghouse Research Center. (2021). Spring 2021 enrollment (as of Feb 11). https://nscresearchcenter.org/stay-informed/

1

State funding for higher education is projected to decline in the next fiscal year. For more information about the expected impacts of the COVID-19 pandemic and economic recession on higher education funding, see the SHEEO analysis of early fiscal year 2021 funding.

National Association of State Budget Officers

National Association of State Budget Officers. (2020). State expenditure report: Fiscal years 2018-2020. NASBO. https://www.nasbo.org/reports-data/state-expenditure-report