State Higher Education Executive Officers Association. (2021). Investigating the impacts of state higher education appropriations and financial aid. https://sheeo.org/wp-content/uploads/2021/05/SHEEO_ImpactAppropationsFinancialAid.pdf

Each year, approximately one-third of education appropriations, a primary component of total education revenue, in Illinois go toward the state’s retirement pension system. See the Illinois State Spotlight for more details.

This large decline in Colorado was entirely due to the state’s reliance on federal stimulus funding in 2021.

Ma, J. and Pender, M. (2023). Trends in college pricing and student aid 2023. College Board. research.collegeboard.org/media/pdf/Trends%20Report%202023%20Updated.pdf

State Higher Education Executive Officers Association internal dataset on state tuition, fee, and financial assistance policies. sheeo.org/project/tuition-and-fee-survey/

Jaquette, O., & Curs, B. R. (2015). Creating the out-of-state university: Do public universities increase nonresident freshman enrollment in response to declining state appropriations? Research in Higher Education, 56(6), 535–565. doi.org/10.1007/s11162-015-9362-2

National Center for Education Statistics. (2022). Table 309.30. Residence and migration of all first-time degree/certificate-seeking undergraduates in 4-year degree-granting postsecondary institutions who graduated from high school in the previous 12 months, by state or jurisdiction: Fall 2020. Digest of Education Statistics. nces.ed.gov/programs/digest/d22/tables/dt22_309.30.asp; National Center for Education Statistics. (1990). Table 189. Residence and migration of all freshmen students in 4-year colleges graduating from high school in the past 12 months, by State: Fall 1988. Digest of Education Statistics. nces.ed.gov/pubs91/91660.pdf

Boland, W. C. (2018). Performance funding and historically black colleges and universities: An assessment of financial incentives and baccalaureate degree production. Educational Policy. doi/pdf/10.1177/0895904818802118; Hillman, N. W., Tandberg, D. A., & Fryar, A. H. (2015). Evaluating the impacts of ‘‘new’’ performance funding in higher education. Educational Evaluation and Policy Analysis, 37(4), 501–519.; Hu, X. (2019). Efficiency for whom? Varying impact of performance-based funding on community colleges in Louisiana. Community College Review, 47(4), 323–359.; Ortagus, J. C., Kelchen, R., Rosinger, K., & Voorhees, N. (2020). Performance-based funding in American higher education: A systematic synthesis of the intended and unintended consequences. Educational Evaluation and Policy Analysis, 42(4), 520–550. doi.org/10.3102/0162373720953128; Rutherford, A., & Rabovsky, T. (2014). Evaluating impacts of performance funding policies on student outcomes in higher education. The ANNALS of the American Academy of Political and Social Science, 655(1), 185–208. doi.org/10.1177/0002716214541048; Tandberg, D. A., & Hillman, N. W. (2014). State higher education performance funding: Data, outcomes, and policy implications. Journal of Education Finance, 39(3), 222–243.

Hillman, N., & Corral, D. (2017). The equity implications of paying for performance in higher education. American Behavioral Scientist, 61(14), 1757–1772. doi.org/10.1177/0002764217744834

Hearn, J. C. (2015, November). Outcomes-based funding in historical and comparative context. Lumina Foundation. luminafoundation.org/files/resources/hearn-obf-full.pdf

Gándara, D., & Rutherford, A. (2018) Mitigating unintended impacts? The effects of premiums for underserved populations in performance-funding policies for higher education. Research in Higher Education, 59, 681-703. doi.org/10.1007/s11162-017-9483-x 

Manns, D. A., & Katsinas, S. G. (2006). Capital budgeting practices in public higher education. Facilities Manager, 22(1), 36–42.

We explored collecting annual expenditure amounts for capital projects, but ultimately determined that the burden placed on data providers to collect this level of data was much greater than the benefits these data would provide. Please visit the SHEF website for more information on the Grapevine data shef.sheeo.org/grapevine.

The large decrease in education appropriations, a primary component of total education revenue, from fiscal year 2023 to 2024 for Alabama is due to a one-time supplemental appropriation allocated to higher education in 2023.

Each year, approximately one-third of education appropriations, a primary component of total education revenue, in Illinois go toward the state’s retirement pension system. See the Illinois State Spotlight for more details.

The large decrease in education appropriations, a primary component of total education revenue, from fiscal year 2023 to 2024 for Alabama is due to a one-time supplemental appropriation allocated to higher education in 2023.

Each year, approximately one-third of education appropriations, a primary component of total education revenue, in Illinois go toward the state’s retirement pension system. See the Illinois State Spotlight for more details.

State Higher Education Executive Officers Association. (2021). Investigating the impacts of state higher education appropriations and financial aid. https://sheeo.org/wp-content/uploads/2021/05/SHEEO_ImpactAppropationsFinancialAid.pdf

Unlike state-level education appropriations, sector-level education appropriations exclude agency funding and include only the portion of federal stimulus funding known to be allocated for two-year or four-year public operating purposes. In a handful of states, some state support and financial aid are uncategorizable, meaning they are not allocated to either sector, and are excluded from the sector-level data.

The large decrease in education appropriations from fiscal year 2023 to 2024 for Alabama is due to a one-time supplemental appropriation allocated to higher education in 2023.

Federal stimulus funds protected education appropriations in two ways: states received federal stimulus funding for other priority budget areas, reducing the need to redirect higher education funds toward those areas, and states received targeted federal stimulus funding directly to higher education.

According to the National Center for Education Statistics, in fall 2023, an estimated 37% of two-year students (at both public and private institutions) attended full time, compared to 73% at four-year institutions. Source: Table 303.70, https://nces.ed.gov/programs/digest/d23/tables/dt23_303.70.asp.

The funding levels and trends over time shown in the U.S. wave chart differ substantially by state.

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

These adjustments are described in more detail on the data definitions page of the SHEF website (https://shef.sheeo.org/data-definitions/).

It is important to note that the U.S. level data 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 FTEs across the 50 states. It is not the average of each of the 50 state’s individual per-FTE calculations.

Wyoming is the only state without an increase in the student share since 1980. In Wyoming, the student share has decreased from 14.0% in 1980 to 11.1% in 2021.

National Association of State Student Grant Aid Programs. (2021). Annual survey report on state-sponsored student financial aid. https://www.nassgapsurvey.com/survey_reports/2019-2020-51st.pdf

Declines in net tuition revenue are largely due to increases in state financial aid and minimal tuition rate growth.

Federal stimulus funding allocated to states due to the COVID-19 pandemic is included in education appropriations and total education revenue throughout the SHEF report.

Unlike the SHEF data, NASBO expenditures exclude employer contributions to pensions and health benefits. NASBO defines state general funds as the majority fund for financing a state’s operations with revenues received from broad-based state taxes such as personal and corporate income tax, and sales tax.

Overall, 1.7% of state public financial aid was uncategorizable. Thirty-seven states and Washington, D.C., were able to classify all state public financial aid by sector and listed no uncategorizable aid. In four states, more than 10% of aid could not be classified by sector: Alabama (17.1%), Colorado (13.9%), Ohio (15.9%), and Texas (15.0%). Additionally, in California, state funds for nontuition financial aid are classified as uncategorizable state support. Therefore, they are not included in sector-level data.

In fiscal year 2023, Michigan created the Michigan Achievement Scholarship and disbursed financial aid awards to the first cohort of students in fiscal year 2024. See the Michigan State Spotlight.

The large decrease in education appropriations from fiscal year 2023 to 2024 for Alabama is due to a one-time supplemental appropriation allocated to higher education in 2023.

The large decrease in education appropriations from fiscal year 2023 to 2024 for Alabama is due to a one-time supplemental appropriation allocated to higher education in 2023.

Each year, approximately one-third of education appropriations in Illinois go toward the state’s retirement pension system. See the Illinois State Spotlight for more details.

State Higher Education Executive Officers Association. (2021). Investigating the impacts of state higher education appropriations and financial aid. https://sheeo.org/wp-content/uploads/2021/05/SHEEO_ImpactAppropationsFinancialAid.pdf

Student FTE enrollment also increased 54.3% from 1980 to 2021.

Data are adjusted for inflation using the 2021 Consumer Price Index (CPI-U).

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.

Higher education support refers to the sum of state tax appropriations, non-tax support, local appropriations, non-appropriated support, state-funded endowment earnings, and other state funds, net of any funds not available for use. Federal stimulus funding is is not included.

In Illinois, a large portion of education appropriations (which constitute most of the state’s total education revenue) are not available for operations at public institutions. A SHEF Issue Brief on Illinois from the 2018 SHEF report provides more detail on the funding situation in Illinois over time.

Higher education support per capita is adjusted for inflation using the 2021 Consumer Price Index (CPI-U). 

Higher education support refers to the sum of state tax appropriations, non-tax support, local appropriations, non-appropriated support, state-funded endowment earnings, and other state funds, net of any funds not available for use. Federal stimulus funding is not included.

Higher education support refers to the sum of state tax appropriations, non-tax support, local appropriations, non-appropriated support, state-funded endowment earnings, and other state funds, net of any funds not available for use. Federal stimulus funding is not included.

Higher education support refers to the sum of state tax appropriations, non-tax support, local appropriations, non-appropriated support, state-funded endowment earnings, and other state funds, net of any funds not available for use. Federal stimulus funding is not included.

Actual tax revenue per capita is inflated to 2020 dollars using Consumer Price Index (CPI-U).

Total taxable resources per capita are inflated to 2020 dollars using Consumer Price Index (CPI-U).

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. 

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

U.S. Department of the Treasury. (2002). Treasury methodology for estimating total taxable resources (TTR). 

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

For more information about how states protected student affordability during the COVID-19 pandemic, see the SHEEO report, Effects of the COVID-19 pandemic on state tuition, fees, and financial assistance policies, at sheeo.org/wp-content/uploads/2023/04/COVID19-Tuition-and-Fee-Survey.pdf.

The large decrease in education appropriations from fiscal year 2023 to 2024 for Alabama is due to a one-time supplemental appropriation allocated to higher education in 2023.

Each year, approximately one-third of education appropriations in Illinois go toward the state’s retirement pension system. See the Illinois State Spotlight for more details.

 National Student Clearinghouse Research Center. (2024). Fall 2024 enrollment (as of September 2024). nscresearchcenter.org/stay-informed/

There are several differences in education appropriations between the state and sector levels. The state-level data include agency funding and all federal stimulus funding allocated to public institutions. The sector-level data exclude agency funding and include only the federal stimulus funding allocated to two-year or four-year public operating. In a few states, some uncategorizable state support and uncategorizable financial aid could not be allocated to either sector.

Maynard, M., (2024). How a pandemic-era surge in tax collections drove a revenue wave–and what it means for future state budgets. https://www.pewtrusts.org/en/research-and-analysis/issue-briefs/2024/08/how-a-pandemic-era-surge-in-tax-collections-drove-a-revenue-wave

Weeden, D., (2018). State budget drivers: Slow revenue growth and increased expenditure competition. https://shef.sheeo.org/wp-content/uploads/2020/04/SHEEO_SHEF_FY18_IB_Budget_Drivers.pdf

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 (shef.sheeo.org/wp-content/uploads/2020/04/SHEEO_SHEF_FY19_IB_Financial_Aid.pdf) on state financial aid explores trends over time in state financial aid to public and private institutions by state.

National Bureau of Economic Research. (2021). Business cycle dating committee announcement July 19, 2021. www.nber.org/news/business-cycle-dating-committee-announcement-july-19-2021

Each year, approximately one-third of education appropriations in Illinois go toward the state’s retirement pension system. See the Illinois State Spotlight for more details.

Rhode Island has not reported any RAM allocations since the start of the SHEF dataset.

These funds have always been included in general public operations but were not available as a breakout until 2019.

Brown, P. (2023). SHEF: FY 2022 Issue Brief: Analyzing Lottery Proceeds as an Aspect of State Support for Higher Education. https://shef.sheeo.org/wp-content/uploads/2024/04/SHEF-Lottery-Funding_FY22.pdf.

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

Federal stimulus funding is provided to state governments to stabilize state and local sources of revenue for higher education. It includes funds from the American Recovery and Reinvestment Act (ARRA) during the Great Recession, the 2020 Coronavirus Aid, Relief, and Economic Security (CARES) Act, the 2020 Coronavirus Response and Relief Supplemental Appropriations (CRRSA) Act, and the 2021 American Rescue Plan (ARP) during the COVID-19 pandemic. Federal stimulus must be state allocated and excludes aid used for capital projects and funds provided directly to institutions, such as the Higher Education Emergency Relief Fund (HEERF).

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

National Association of State Budget Officers. (2024). State expenditure report: Fiscal years 2022-2024. www.nasbo.org/reports-data/state-expenditure-report

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

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.

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.

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.

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

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.

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

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

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

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

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 

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

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

National Association of State Budget Officers. (2023). State expenditure report: Fiscal years 2021-2023. https://www.nasbo.org/reports-data/state-expenditure-report