Graph of TTR over time

At a national level, inflation-adjusted total taxable resources (TTR) per capita 5 5Total taxable resources per capita are inflated to 2019 dollars using Consumer Price Index (CPI-U). VIEW ALL FOOTNOTES have increased in 30 out of 39 years since 1980, reaching an all-time high in 2019 of $72,927 per capita ($23.9 trillion total), up from $44,028 per capita ($10.0 trillion total) in 1980 and up 1.6% since 2018. This is the third consecutive year TTR has surpassed $70,000 per capita. TTR per capita previously declined during past recessions (1981-1982, 1990-1991, 2001-2002, 2008-2009); however, TTR also declined outside of an economic recession in 2013. Since 2020 TTR data are not yet available, it is unclear how the brief recession caused by the COVID-19 pandemic will affect recent trends in TTR per capita.

Graph of ATR over time

Inflation-adjusted actual tax revenue (ATR) per capita 6 6Actual tax revenue per capita is inflated to 2019 dollars using Consumer Price Index (CPI-U). VIEW ALL FOOTNOTES has increased in 32 years since 1980. ATR reached an all-time high in 2019 of $5,678 per capita ($1.86 trillion), up from $3,047 per capita ($690.4 billion) in 1980 and up 3.8% since 2018. Like TTR, ATR per capita previously declined during and immediately following economic recessions in 1981, 1991, 2002-2003, and 2008-2010.

Graph of tax rate over time

In 2019, the national effective tax rate was 7.8%, just above the average effective tax rate from 1980 to 2019 (7.7%). This suggests state and local governments are collecting a share of income flows through their tax systems that is in line with what they have collected over the last few decades. Between 1980 and 1993, the effective tax rate steadily increased from 6.9% to 8.2% and has fluctuated between 7.4-8.2% ever since.

State Comparisons

Table 1 shows the total taxable resources, actual state and local tax revenues, and the effective tax rate in 2019 for each state. Total taxable resources, an indicator of a state’s tax base, vary extensively by state.

  • TTR per capita ranged from $44,420 in Mississippi to $101,406 in New York and $124,265 in Washington, D.C.
  • In addition to New York and Washington, D.C., four other states (Connecticut, Delaware, Massachusetts, and Washington) had TTR above $90,000 per capita.
  • Mississippi was the only state with TTR below $50,000 per capita.

States with greater TTR per capita have larger tax bases from which they can draw revenue to fund public services. In general, states with higher TTR per capita tend to collect a larger amount in actual tax revenue per capita.

  • Actual tax revenue per capita ranged from $3,423 in Tennessee to $10,213 in New York and $11,981 in Washington, D.C.
  • Most states with high tax capacity (TTR) also had an above-average ATR in 2019. However, six states (Alaska, Colorado, Nebraska, New Hampshire, Virginia, and Wyoming) had above-average TTR but collected less than average ATR. Of these states with higher tax capacity, Colorado, New Hampshire, and Virginia allocated less than the average amount of higher education state and local support per FTE in 2019. 7 7Higher 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 excluded. VIEW ALL FOOTNOTES  
  • Five states (Hawaii, Maine, Pennsylvania, Rhode Island, and Vermont) had below- average TTR but collected above-average ATR, indicating an above-average tax rate. Of these states, Hawaii was the only state that allocated above-average state and local support per FTE in 2019.

Effective tax rates vary across states, as each state has a unique tax base and structure.

  • Figure 1 shows that effective tax rates ranged from 5.7% in Tennessee to 11.0% in Hawaii.
  • States with above-average total resources and tax rates tend to fund higher education at higher rates. Of the eight states (California, Connecticut, Illinois, Maryland, Minnesota, New Jersey, New York, North Dakota) and Washington, D.C., with both above-average TTR and effective tax rates, only Minnesota had below-average state and local support per FTE in 2019.
  • States with a low tax rate and high total resources are relatively less likely to provide above-average funding to higher education. Nine states (Alaska, Colorado, Delaware, Massachusetts, Nebraska, New Hampshire, Virginia, Washington, and Wyoming) had a below-average effective tax rate but above-average TTR. Of these states with higher tax capacity, Alaska, Massachusetts, Nebraska, and Wyoming provided above-average state and local support per FTE in 2019.
  • Similarly, states with a high tax rate but low total resources are less likely to provide above-average funding to higher education. Eleven states had an above-average effective tax rate and below-average TTR. Of these states with lower tax capacity, only Hawaii and New Mexico provided above-average state and local support per FTE in 2019.

State Spotlight : New Hampshire and Vermont

NH
VT

The neighboring New England states of New Hampshire and Vermont illustrate differences in state capacity to increase tax revenue to support higher education. In 2019, Vermont and New Hampshire provided the lowest and second-lowest amount of state support per FTE in the country ($3,640 and $4,518, respectively). While the states have similar levels of state higher education support, they have very different effective tax rates. As seen in Figure 1, New Hampshire had the fifth lowest effective tax rate (6.4%), and Vermont had the fourth highest effective tax rate (10.4%) in 2019. Vermont collected over $1,500 more per capita in actual tax revenue than New Hampshire even though Vermont’s total taxable resources per capita were more than $15,900 lower than New Hampshire’s. Because Vermont already has one of the highest effective tax rates and has below-average taxable resources per capita, the state may not have the capacity to increase tax revenue that can be allocated to higher education (but could potentially reprioritize existing state tax dollars); whereas New Hampshire, with higher total taxable resources and a lower effective tax rate, may have a greater capacity to increase higher education support through tax rate increases.

Figure 1

Effective Tax Rates by State, FY 2019


Notes:
  1. The U.S. calculation does not include the District of Columbia.
  2. Effective tax rates are calculated from actual tax revenues divided by total taxable resources. Actual tax revenue (ATR) data are the per-capita general revenues derived from taxation by state and local governments. Total taxable resources (TTR) equals the taxable gross state product (GDP) per capita.
Source(s):
  • State Higher Education Executive Officers Association
  • Actual tax revenues are from the U.S. Census Bureau 2019 Annual Survey of State and Local Government Finances.
  • Total taxable resources are from the U.S. Treasury Department.
Table 1

Tax Capacity, Tax Revenues, and Effective Tax Rates by State, FY 2019

Actual Tax Revenues (ATR) Total Taxable Resources (TTR) Effective Tax Rate (ATR/TTR)
State Dollars Per Capita Index to U.S. Average Dollars Per Capita Index to U.S. Average Tax Rate Index to U.S. Average
Alabama $3,677 0.65 $52,354 0.72 7.0% 0.90
Alaska $5,115 0.90 $77,234 1.06 6.6% 0.85
Arizona $4,099 0.72 $57,029 0.78 7.2% 0.92
Arkansas $4,282 0.75 $51,594 0.71 8.3% 1.07
California $7,326 1.29 $86,381 1.18 8.5% 1.09
Colorado $5,617 0.99 $76,475 1.05 7.3% 0.94
Connecticut $8,308 1.46 $101,030 1.39 8.2% 1.06
Delaware $5,909 1.04 $90,474 1.24 6.5% 0.84
Florida $3,987 0.70 $65,174 0.89 6.1% 0.79
Georgia $4,125 0.73 $64,432 0.88 6.4% 0.82
Hawaii $7,848 1.38 $71,193 0.98 11.0% 1.42
Idaho $3,916 0.69 $55,174 0.76 7.1% 0.91
Illinois $6,280 1.11 $78,442 1.08 8.0% 1.03
Indiana $4,367 0.77 $63,025 0.86 6.9% 0.89
Iowa $5,393 0.95 $68,905 0.94 7.8% 1.01
Kansas $5,368 0.95 $70,367 0.96 7.6% 0.98
Kentucky $4,203 0.74 $53,988 0.74 7.8% 1.00
Louisiana $4,504 0.79 $59,177 0.81 7.6% 0.98
Maine $6,249 1.10 $57,580 0.79 10.9% 1.39
Maryland $6,788 1.20 $84,308 1.16 8.1% 1.03
Massachusetts $7,342 1.29 $98,469 1.35 7.5% 0.96
Michigan $4,463 0.79 $60,319 0.83 7.4% 0.95
Minnesota $6,735 1.19 $75,023 1.03 9.0% 1.15
Mississippi $3,952 0.70 $44,420 0.61 8.9% 1.14
Missouri $4,079 0.72 $61,231 0.84 6.7% 0.86
Montana $4,444 0.78 $58,665 0.80 7.6% 0.97
Nebraska $5,563 0.98 $73,976 1.01 7.5% 0.97
Nevada $4,850 0.85 $67,367 0.92 7.2% 0.92
New Hampshire $5,191 0.91 $80,679 1.11 6.4% 0.83
New Jersey $7,950 1.40 $88,402 1.21 9.0% 1.16
New Mexico $5,073 0.89 $55,322 0.76 9.2% 1.18
New York $10,213 1.80 $101,406 1.39 10.1% 1.29
North Carolina $4,259 0.75 $61,908 0.85 6.9% 0.88
North Dakota $8,560 1.51 $81,621 1.12 10.5% 1.35
Ohio $4,781 0.84 $65,095 0.89 7.3% 0.94
Oklahoma $4,215 0.74 $56,483 0.77 7.5% 0.96
Oregon $5,386 0.95 $66,766 0.92 8.1% 1.04
Pennsylvania $5,745 1.01 $72,028 0.99 8.0% 1.02
Rhode Island $6,111 1.08 $72,025 0.99 8.5% 1.09
South Carolina $3,889 0.68 $55,062 0.76 7.1% 0.91
South Dakota $4,289 0.76 $70,084 0.96 6.1% 0.79
Tennessee $3,423 0.60 $60,256 0.83 5.7% 0.73
Texas $4,709 0.83 $69,220 0.95 6.8% 0.87
Utah $4,841 0.85 $66,345 0.91 7.3% 0.94
Vermont $6,711 1.18 $64,745 0.89 10.4% 1.33
Virginia $5,383 0.95 $75,789 1.04 7.1% 0.91
Washington $6,040 1.06 $90,284 1.24 6.7% 0.86
West Virginia $4,505 0.79 $51,223 0.70 8.8% 1.13
Wisconsin $5,263 0.93 $68,030 0.93 7.7% 0.99
Wyoming $5,564 0.98 $83,109 1.14 6.7% 0.86
D.C. $11,981 2.11 $124,265 1.70 9.6% 1.24
U.S. $5,678 1.00 $72,927 1.00 7.8% 1.00
Notes:
  1. Effective tax rates are calculated from actual tax revenues divided by total taxable resources.
  2. Actual tax revenue (ATR) data are the per-capita general revenues derived from taxation by state and local governments.
  3. Total taxable resources (TTR) equals the taxable gross state product (GDP) per capita.
  4. The U.S. calculation does not include the District of Columbia.
Source(s):
  • State Higher Education Executive Officers Association
Map 1

Allocation to Higher Education, FY 2019

Nationally, 5.5% of state revenue ($103.9 billion) was allocated to higher education in 2019. This represents a 1.1 percentage point decline from fiscal year 2008—the year the Great Recession began to impact state revenue collections and budgets. The percentage of revenue allocated to higher education had never fallen below 6% until 2012. Since this time, 5.8% of revenue allocated to higher education represents the post-recession high mark. This percentage was allocated in 2012, 2014, 2015, 2016, and 2017 before falling to 5.6% in 2018. The Great Recession may have permanently changed the percentage of funding allocated to higher education, as tax revenues have more than recovered to pre-recession levels but higher education receives a smaller portion of the total revenue.

The decline in the allocation to higher education seen during the Great Recession followed a longer-term pattern in which state allocations to higher education have declined over time, despite steady increases in states’ total revenues (ATR and lottery profits). In 1980, the U.S. average allocation to higher education was 8.7%; in 2019 it had decreased by over a third to 5.5%. Meanwhile, ATR and lottery profits increased 88.0% from an inflation-adjusted $3,060 per capita ($693.4 billion) in 1980 to $5,755 per capita ($1.88 trillion) in 2019.

State Comparisons

Figure 2 shows that the percentage of revenue allocated to higher education ranged from 1.2% in Washington, D.C., and 1.8% in New Hampshire to 13.4% in Wyoming. North Carolina (10.1%) was the only other state to allocate more than 10% of revenue to higher education, while Rhode Island (2.9%), Pennsylvania (2.5%), and Vermont (2.2%) were the only other states to allocate less than 3%.

Notably, New York and Washington, D.C., were in the bottom 20% for the percentage of state revenue allocated to higher education, yet were in the top 20% for state and local support per FTE (excluding stimulus) in 2019. This is an indication that the states have large tax revenues to draw upon for higher education funding.

The Great Recession adversely affected the percentage of revenue allocated to higher education. Only four states (Alaska, Florida, Tennessee, and Wyoming) increased the portion of revenue allocated to higher education from 2008-2019. Of the 46 states with a lower allocation to higher education in 2019, 12 states lowered their allocation by at least two percentage points.

Between fiscal years 2014-2019, only nine states and Washington, D.C., increased the percentage of revenue allocated to higher education. The largest increases were 2.3 percentage points in Alaska and Wyoming. In the remaining 41 states, the portion of revenue allocated to higher education continued to decline from 2014-2019 despite a strong economy. Eight states saw declines greater than 1.0 percentage point, the largest of which was in Oklahoma (2.7 percentage points). From 2018 to 2019, 12 states and Washington, D.C., increased the percentage of revenue allocated to higher education while the remaining 38 saw declines (Table 2). Only one state, New Mexico, experienced a decline greater than 1.0 percentage point, with a decrease of 1.6 percentage points.

Figure 2

Percent of Tax and Lottery Revenues Allocated to Higher Education by State, FY 2019


Notes:
  1. Allocation to higher education is higher education support as a proportion of actual tax revenues and lottery profits.
  2. Total state and local support is the sum of 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.
  3. Actual tax revenue (ATR) data are the total general revenues derived from taxation by state and local governments.
  4. Lottery profits are the revenues from all lotto games and gaming operations, where applicable, that are transferred to beneficiaries.
  5. The U.S. calculation does not include the District of Columbia.
Source(s):
  • State Higher Education Executive Officers Association
  • Actual tax revenues are from the U.S. Census Bureau 2019 Annual Survey of State and Local Government Finances.
  • Lottery profits are from the North American Association of State and Provincial Lotteries.
Table 2

Percent of Tax and Lottery Revenues Allocated to Higher Education by State, FY 1980-2019

State 1980 2001 2009 2014 2018 2019 Index to U.S. Average Change Since 2018 Change Since 2014 Change Since 2009 Change Since 2001 Change Since 1980
Alabama 12.6% 11.1% 11.9% 9.9% 9.3% 9.2% 1.67 -0.1 -0.7 -2.7 -1.9 -3.4
Alaska 5.2% 7.7% 5.1% 7.2% 9.7% 9.4% 1.71 -0.3 2.3 4.3 1.8 4.3
Arizona 10.7% 8.9% 9.0% 7.5% 6.4% 6.1% 1.11 -0.3 -1.4 -2.9 -2.8 -4.6
Arkansas 10.5% 9.9% 9.6% 9.2% 8.1% 7.9% 1.44 -0.2 -1.3 -1.7 -1.9 -2.5
California 10.5% 8.0% 6.9% 6.1% 6.4% 6.4% 1.16 0.0 0.3 -0.5 -1.6 -4.1
Colorado 7.8% 5.4% 3.9% 3.2% 3.3% 3.3% 0.60 0.1 0.2 -0.6 -2.0 -4.5
Connecticut 5.3% 5.5% 6.1% 4.8% 4.0% 4.0% 0.73 0.0 -0.8 -2.1 -1.5 -1.3
Delaware 8.0% 6.7% 6.3% 5.2% 4.3% 4.1% 0.75 -0.1 -1.1 -2.2 -2.5 -3.9
Florida 8.5% 7.3% 5.9% 5.8% 5.9% 6.2% 1.12 0.3 0.3 0.3 -1.1 -2.3
Georgia 10.3% 9.1% 8.9% 7.9% 8.3% 8.2% 1.48 -0.1 0.2 -0.8 -0.9 -2.2
Hawaii 10.9% 7.8% 9.5% 6.5% 6.9% 7.0% 1.27 0.1 0.5 -2.5 -0.8 -3.9
Idaho 12.7% 9.3% 9.4% 7.5% 7.5% 7.6% 1.38 0.1 0.2 -1.8 -1.6 -5.1
Illinois 7.4% 7.8% 6.9% 7.1% 6.5% 6.4% 1.15 -0.2 -0.8 -0.6 -1.4 -1.1
Indiana 9.5% 7.8% 6.6% 6.7% 6.4% 6.2% 1.13 -0.2 -0.4 -0.4 -1.6 -3.3
Iowa 9.1% 10.9% 8.1% 6.5% 5.1% 5.0% 0.90 -0.2 -1.5 -3.1 -6.0 -4.2
Kansas 12.5% 10.4% 8.7% 7.6% 6.7% 6.9% 1.25 0.2 -0.7 -1.8 -3.5 -5.6
Kentucky 11.0% 9.5% 9.2% 7.5% 6.6% 6.2% 1.13 -0.4 -1.3 -3.0 -3.3 -4.8
Louisiana 9.4% 8.4% 8.9% 6.2% 5.6% 5.6% 1.01 -0.1 -0.6 -3.3 -2.8 -3.9
Maine 5.7% 5.2% 4.6% 4.2% 4.1% 3.7% 0.66 -0.4 -0.6 -1.0 -1.5 -2.0
Maryland 7.6% 7.7% 7.1% 6.0% 5.9% 5.9% 1.07 0.0 0.0 -1.1 -1.7 -1.7
Massachusetts 4.6% 4.2% 3.6% 3.2% 3.3% 3.2% 0.58 -0.1 0.0 -0.4 -1.0 -1.4
Michigan 8.3% 8.2% 7.1% 5.7% 5.4% 5.5% 1.00 0.1 -0.2 -1.6 -2.7 -2.8
Minnesota 10.1% 7.0% 6.3% 4.5% 4.6% 4.3% 0.78 -0.3 -0.2 -2.0 -2.7 -5.8
Mississippi 14.0% 13.1% 11.4% 9.8% 8.6% 8.3% 1.50 -0.3 -1.5 -3.1 -4.8 -5.8
Missouri 8.6% 7.5% 6.4% 5.2% 4.6% 4.6% 0.83 -0.1 -0.6 -1.8 -3.0 -4.0
Montana 7.8% 6.4% 6.1% 5.9% 5.5% 5.3% 0.96 -0.2 -0.6 -0.7 -1.1 -2.5
Nebraska 11.7% 9.8% 10.2% 9.0% 8.9% 8.7% 1.57 -0.2 -0.3 -1.5 -1.1 -3.1
Nevada 7.5% 5.9% 6.8% 5.1% 5.0% 5.0% 0.90 -0.1 -0.1 -1.8 -0.9 -2.5
New Hampshire 4.3% 2.4% 2.7% 1.9% 1.8% 1.8% 0.34 0.0 0.0 -0.9 -0.5 -2.5
New Jersey 6.0% 5.1% 4.7% 4.2% 3.7% 3.8% 0.69 0.1 -0.4 -0.9 -1.3 -2.2
New Mexico 12.7% 10.2% 15.0% 11.8% 11.2% 9.6% 1.75 -1.6 -2.2 -5.4 -0.6 -3.1
New York 5.7% 3.8% 4.2% 3.6% 3.5% 3.5% 0.64 0.0 -0.1 -0.7 -0.3 -2.1
North Carolina 11.6% 11.5% 11.8% 10.5% 10.1% 10.1% 1.83 0.0 -0.4 -1.7 -1.4 -1.5
North Dakota 13.8% 10.6% 7.6% 5.7% 6.2% 5.5% 1.00 -0.7 -0.2 -2.2 -5.1 -8.3
Ohio 7.6% 6.4% 5.9% 4.6% 4.5% 4.4% 0.79 -0.2 -0.2 -1.5 -2.1 -3.2
Oklahoma 11.1% 9.6% 9.1% 7.9% 5.7% 5.3% 0.95 -0.5 -2.7 -3.8 -4.3 -5.8
Oregon 10.3% 7.6% 6.3% 5.0% 4.8% 4.6% 0.83 -0.2 -0.4 -1.7 -3.0 -5.7
Pennsylvania 5.7% 5.6% 4.3% 2.9% 2.6% 2.5% 0.46 -0.1 -0.3 -1.8 -3.1 -3.2
Rhode Island 7.6% 4.3% 3.7% 2.9% 3.1% 2.9% 0.52 -0.2 0.0 -0.9 -1.4 -4.8
South Carolina 14.4% 9.5% 7.8% 6.1% 6.1% 5.9% 1.08 -0.2 -0.2 -1.9 -3.5 -8.5
South Dakota 9.4% 7.0% 7.1% 6.4% 6.0% 6.2% 1.12 0.2 -0.2 -0.9 -0.8 -3.2
Tennessee 10.6% 8.0% 8.7% 7.7% 8.4% 8.5% 1.55 0.1 0.8 -0.2 0.5 -2.0
Texas 11.8% 9.2% 8.4% 7.7% 7.1% 6.8% 1.24 -0.3 -0.9 -1.6 -2.3 -5.0
Utah 11.3% 9.2% 8.6% 7.7% 7.9% 7.2% 1.30 -0.7 -0.6 -1.4 -2.0 -4.1
Vermont 5.4% 2.9% 3.0% 2.7% 2.3% 2.2% 0.40 -0.1 -0.5 -0.8 -0.8 -3.2
Virginia 9.5% 7.3% 6.0% 5.1% 4.7% 4.6% 0.83 -0.1 -0.5 -1.4 -2.7 -4.9
Washington 11.2% 7.0% 6.7% 4.9% 4.3% 4.4% 0.80 0.1 -0.4 -2.3 -2.6 -6.8
West Virginia 9.4% 8.8% 7.4% 6.6% 5.9% 5.7% 1.04 -0.2 -0.9 -1.6 -3.1 -3.6
Wisconsin 10.2% 8.8% 7.8% 6.5% 6.0% 5.9% 1.07 -0.1 -0.6 -1.9 -2.9 -4.3
Wyoming 9.2% 9.3% 9.0% 11.1% 13.9% 13.4% 2.44 -0.4 2.3 4.4 4.2 4.2
D.C. N/A N/A N/A 1.2% 1.1% 1.2% 0.21 0.0 0.0 N/A N/A N/A
U.S. 8.7% 7.3% 6.7% 5.8% 5.6% 5.5% 1.00 -0.1 -0.3 -1.2 -1.8 -3.2
Notes:
  1. Allocation to higher education is higher education support as a proportion of actual tax revenues and lottery profits.
  2. Total state and local support is the sum of 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.
  3. Actual tax revenue (ATR) data are the per-capita general revenues derived from taxation by state and local governments.
  4. Lottery profits are the revenues from all lotto games and gaming operations, where applicable, that are transferred to beneficiaries.
  5. Year change columns show percentage point increases or decreases, not percent change.
  6. The years 1980 and 2001 are included in this table because they are the starting points of the historical SHEF dataset and modern SHEF data collection, respectively.
  7. The U.S. calculation does not include the District of Columbia. Data for the District of Columbia are not available prior to 2011.
Source(s):
  • State Higher Education Executive Officers Association
Map 2

Higher Education Support per Capita, FY 2020

Nationally, states allocated $328 per capita to higher education in 2020. Inflation-adjusted state support per capita has increased 21.8% since the start of the SHEF dataset in 1980, when inflation-adjusted support totaled $269 per capita. 10 10Higher education support per capita is adjusted for inflation using the 2020 Consumer Price Index (CPI-U).  VIEW ALL FOOTNOTES Support per capita increased throughout the 1980s and has since generally followed the economic cycle, increasing and decreasing following economic peaks and troughs. Higher education support per capita increased 2.2% from 2019 to 2020 and 5.6% since 2015 (Table 3). However, per capita support on a national level is down 6.8% and 5.4% when compared to pre-recession years 2008 and 2001 (respectively).

State Comparisons

Figure 3 shows that higher education support per capita ranged considerably across states in 2020, from $108 in New Hampshire to $731 in Wyoming. Four states (New Hampshire, Pennsylvania, Rhode Island, and Vermont) and Washington, D.C., provided less than $200 in per capita support for higher education, while another three states (Hawaii, New Mexico, and Wyoming) provided at least $500 per capita.

  • From 2019 to 2020, support per capita decreased in 12 states and Washington, D.C. (Table 3). The largest declines were in Alaska (8.3%) and Michigan (7.3%). Of the 38 states with increases in support per capita from 2019 to 2020, 13 were above 5%. The largest increases were 9.0% in Colorado and 9.3% in New Hampshire.
  • Higher education support per capita has declined in half of all states since 2010 and in 36 states since 2008 (prior to the Great Recession).
  • Since 1980, support per capita has increased in most (36) states. In seven states, support per capita has increased by more than 50%. The largest increases were in Illinois (70.7%), Wyoming (81.1%), and Connecticut (97.6%). 11 11In 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.

    VIEW ALL FOOTNOTES
    Of the 14 states with decreases in support per capita since 1980, four had declines greater than 20%: Alaska (33.1%), Rhode Island (24.4%), Arizona (21.9%), and Oklahoma (20.5%).
Figure 3

Higher Education Support per Capita by State, FY 2020


Notes:
  1. Total state and local support is the sum of 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.
  2. The U.S. calculation does not include the District of Columbia.
  3. Constant dollars adjusted by the Consumer Price Index (CPI).
Source(s):
  • State Higher Education Executive Officers Association
  • Population data are from the U.S. Department of Commerce, Bureau of Economic Analysis, Regional Income Division
Table 3

Higher Education Support per Capita by State, FY 1980-2020 (Constant Dollars)

State 1980 2001 2010 2015 2019 2020 Index to U.S. Average % Change Since 2019 % Change Since 2015 % Change Since 2010 % Change Since 2001 % Change Since 1980
Alabama $257 $357 $354 $331 $343 $361 1.10 5.3% 9.0% 2.0% 1.1% 40.4%
Alaska $670 $445 $561 $594 $489 $449 1.37 -8.3% -24.5% -20.1% 0.9% -33.1%
Arizona $335 $335 $340 $282 $256 $262 0.80 2.6% -7.0% -22.9% -21.8% -21.9%
Arkansas $214 $338 $394 $375 $347 $349 1.06 0.8% -6.9% -11.2% 3.4% 62.9%
California $386 $449 $383 $410 $477 $493 1.50 3.3% 20.2% 28.9% 9.8% 27.7%
Colorado $242 $250 $122 $170 $191 $208 0.63 9.0% 22.1% 70.0% -16.9% -14.1%
Connecticut $180 $366 $434 $370 $342 $356 1.09 4.3% -3.8% -18.0% -2.7% 97.6%
Delaware $270 $339 $299 $263 $257 $260 0.79 1.2% -1.0% -13.0% -23.3% -3.5%
Florida $200 $279 $231 $229 $255 $255 0.78 0.0% 11.0% 10.2% -8.8% 27.5%
Georgia $249 $401 $321 $311 $350 $359 1.09 2.6% 15.5% 12.0% -10.5% 44.4%
Hawaii $435 $404 $466 $440 $557 $545 1.66 -2.0% 23.9% 17.0% 35.0% 25.4%
Idaho $300 $367 $283 $282 $305 $307 0.93 0.5% 8.6% 8.6% -16.5% 2.4%
Illinois $253 $382 $405 $439 $408 $432 1.32 6.0% -1.7% 6.6% 13.1% 70.7%
Indiana $222 $306 $286 $272 $278 $274 0.83 -1.5% 0.5% -4.1% -10.5% 23.2%
Iowa $278 $441 $316 $322 $273 $280 0.85 2.8% -12.9% -11.2% -36.5% 1.0%
Kansas $363 $448 $391 $381 $377 $391 1.19 3.7% 2.8% 0.0% -12.6% 7.7%
Kentucky $256 $360 $336 $295 $268 $269 0.82 0.4% -8.8% -19.9% -25.1% 5.2%
Louisiana $248 $329 $341 $262 $256 $261 0.80 1.9% -0.4% -23.3% -20.6% 5.5%
Maine $152 $258 $232 $225 $233 $237 0.72 1.8% 5.5% 2.2% -8.0% 55.4%
Maryland $273 $402 $396 $392 $419 $436 1.33 4.0% 11.3% 10.2% 8.4% 59.5%
Massachusetts $181 $259 $177 $235 $244 $253 0.77 3.3% 7.4% 42.8% -2.3% 39.8%
Michigan $288 $376 $289 $255 $254 $236 0.72 -7.3% -7.4% -18.3% -37.3% -18.0%
Minnesota $356 $386 $319 $288 $293 $301 0.92 2.7% 4.4% -5.8% -22.0% -15.5%
Mississippi $285 $425 $422 $389 $331 $344 1.05 4.1% -11.4% -18.5% -19.0% 20.9%
Missouri $205 $286 $221 $211 $191 $200 0.61 4.9% -5.2% -9.5% -29.9% -2.2%
Montana $245 $233 $212 $261 $240 $248 0.76 3.5% -5.0% 17.3% 6.4% 1.2%
Nebraska $354 $433 $494 $500 $490 $500 1.52 2.0% 0.0% 1.2% 15.4% 41.1%
Nevada $226 $242 $202 $214 $245 $246 0.75 0.7% 14.9% 21.8% 1.8% 9.0%
New Hampshire $101 $125 $125 $135 $99 $108 0.33 9.3% -20.4% -14.0% -14.0% 6.3%
New Jersey $219 $322 $347 $307 $311 $302 0.92 -3.1% -1.8% -12.9% -6.2% 37.5%
New Mexico $349 $421 $566 $537 $497 $522 1.59 5.2% -2.7% -7.8% 23.9% 49.7%
New York $267 $281 $345 $350 $371 $369 1.13 -0.4% 5.4% 6.9% 31.4% 38.3%
North Carolina $272 $447 $473 $424 $443 $437 1.33 -1.2% 3.1% -7.5% -2.1% 60.9%
North Dakota $367 $425 $548 $593 $476 $496 1.51 4.2% -16.4% -9.5% 16.8% 35.3%
Ohio $195 $290 $221 $217 $216 $213 0.65 -1.6% -1.8% -3.5% -26.5% 9.3%
Oklahoma $286 $364 $367 $307 $225 $228 0.69 1.1% -25.8% -38.0% -37.5% -20.5%
Oregon $315 $313 $252 $224 $259 $275 0.84 6.2% 22.6% 9.0% -12.2% -12.8%
Pennsylvania $177 $249 $185 $152 $149 $155 0.47 3.7% 2.1% -16.5% -37.8% -12.8%
Rhode Island $241 $234 $180 $178 $187 $182 0.55 -2.9% 2.1% 1.2% -22.1% -24.4%
South Carolina $319 $324 $252 $231 $239 $257 0.78 7.2% 11.0% 1.6% -20.7% -19.5%
South Dakota $233 $262 $272 $278 $278 $296 0.90 6.4% 6.6% 8.8% 13.0% 27.3%
Tennessee $217 $266 $278 $262 $302 $319 0.97 5.7% 21.9% 14.6% 20.1% 47.0%
Texas $298 $356 $366 $329 $329 $337 1.03 2.4% 2.4% -7.9% -5.5% 13.3%
Utah $296 $355 $294 $325 $352 $377 1.15 7.3% 16.1% 28.4% 6.4% 27.5%
Vermont $153 $159 $177 $156 $150 $155 0.47 3.2% -1.0% -12.5% -2.9% 1.4%
Virginia $253 $333 $260 $239 $254 $271 0.82 6.4% 13.0% 4.2% -18.8% 6.8%
Washington $345 $321 $277 $241 $271 $289 0.88 6.8% 20.1% 4.5% -9.9% -16.2%
West Virginia $234 $332 $314 $302 $278 $294 0.89 5.7% -2.8% -6.5% -11.6% 25.5%
Wisconsin $338 $418 $388 $344 $317 $315 0.96 -0.6% -8.6% -18.9% -24.7% -6.9%
Wyoming $403 $499 $718 $770 $758 $731 2.23 -3.7% -5.2% 1.7% 46.4% 81.1%
D.C. N/A N/A N/A $129 $142 $142 0.43 -0.1% 10.2% N/A N/A N/A
U.S. $269 $347 $322 $311 $321 $328 1.00 2.2% 5.6% 2.0% -5.4% 21.8%
Notes:
  1. Total state and local support is the sum of 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.
  2. Constant 2020 dollars adjusted by the Consumer Price Index (CPI).
  3. The years 1980 and 2001 are included in this table because they are the starting points of the historical SHEF dataset and modern SHEF data collection, respectively.
  4. The U.S. calculation does not include the District of Columbia. Data for the District of Columbia are not available prior to 2011.
Source(s):
  • State Higher Education Executive Officers Association
Map 3

Higher Education Support per $1,000 of Personal Income, FY 2020

In 2020, states allocated $5.50 for every $1,000 of personal income to higher education. This amount has been slowly declining over time. In 1980, states provided an average of $8.44 per $1,000 to higher education. This amount was largely unchanged in 1990 ($8.36), but by 2000 (a high point in state support per FTE enrollment), support per $1,000 of personal income had declined to $7.33. Despite declines in personal income due to the Great Recession, higher education support per $1,000 of personal income was down to $6.69 by 2010. Since 2010, this measure has declined in seven of the last ten years. In total, higher education support per $1,000 of personal income has declined 34.8% since 1980. This is because inflation-adjusted personal income increased 171.0% from 1980 to 2020, while inflation-adjusted higher education support increased only 76.7%. 14 14Data are adjusted for inflation using the 2020 Consumer Price Index (CPI-U) in these calculations of change over time in personal income and higher education support per capita. VIEW ALL FOOTNOTES 15 15Student FTE enrollment also increased 59.4% from 1980 to 2020. VIEW ALL FOOTNOTES Since 2008, personal income has increased 31.6% while higher education support has increased just 1.0%.

State Comparisons

Figure 4 shows wide variation in higher education support per $1,000 of personal income across the states in fiscal year 2020, ranging from $1.62 in New Hampshire to $11.55 in Wyoming. Four states (New Hampshire, Rhode Island, Pennsylvania, and Vermont) and Washington, D.C., allocated less than $3 per $1,000 of personal income to support higher education. New Mexico and Wyoming were the only states to allocate more than $10.

Washington, D.C., is in the bottom 20% for support per capita and per $1,000 in personal income, yet is in the top 20% of all states for support per FTE (excluding stimulus). This discrepancy indicates that the above-average per-FTE support in Washington, D.C., may be due, in part, to their capacity to pay for higher education.

From 2019-2020, support per $1,000 decreased in two-thirds of states (33) and Washington, D.C. The largest decreases were 12.8% in Michigan and 10.0% in Alaska. Of the 17 states with year-over-year increases in state support for higher education per $1,000 in personal income, the largest increases were in New Hampshire (5.8%) and Colorado (6.3%).

Between 2010 and 2020, only three states increased higher education support per $1,000 of personal income (Table 4). 

  • Support per $1,000 of personal income increased in Nevada (0.3%), Massachusetts (12.8%), and Colorado (29.2%). 
  • Forty-seven states reported declines in support per $1,000 of personal income. In half of states (25), the decline was greater than 20%. The largest declines were in Oklahoma (45.4%), Arizona (37.2%), and Michigan (35.3%).

Higher education support per $1,000 of personal income increased in only one state between 2001 and 2020: Wyoming (5.4%). Three states (Iowa, Oklahoma, and Pennsylvania) had declines greater than 50%. Similarly, only Wyoming has had an increase since 1980 (4.4%). Of the 49 states with declines in support per $1,000 of personal income from 1980 to 2020, 11 states saw declines greater than 50%. The largest declines since the start of the SHEF dataset in 1980 were in Rhode Island (61.3%), South Carolina (57.6%), and Washington (57.1%). 

Figure 4

Higher Education Support Per $1,000 of Personal Income by State, FY 2020


Notes:
  1. Total state and local support is the sum of 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.
  2. The U.S. calculation does not include the District of Columbia.
Source(s):
  • State Higher Education Executive Officers Association
  • Personal income data are from the U.S. Department of Commerce, Bureau of Economic Analysis, Regional Income Division.
Table 4

Higher Education Support per $1,000 of Personal Income by State, FY 1980-2020

State 1980 2001 2010 2015 2019 2020 Index to U.S. Average % Change Since 2019 % Change Since 2015 % Change Since 2010 % Change Since 2001 % Change Since 1980
Alabama $10 $10 $9 $8 $8 $8 1.40 0.3% -1.9% -12.9% -20.9% -25.2%
Alaska $14 $9 $10 $9 $8 $7 1.26 -10.0% -26.7% -27.6% -23.7% -49.7%
Arizona $11 $9 $9 $7 $5 $5 0.97 -2.3% -17.7% -37.2% -37.4% -51.5%
Arkansas $9 $10 $10 $9 $8 $7 1.35 -3.3% -15.1% -28.6% -23.5% -17.5%
California $10 $9 $7 $7 $7 $7 1.25 -2.5% 2.4% -6.6% -23.6% -33.0%
Colorado $7 $5 $3 $3 $3 $3 0.59 6.3% 9.4% 29.2% -33.1% -53.2%
Connecticut $5 $6 $6 $5 $4 $4 0.81 2.3% -10.0% -24.2% -19.4% -3.8%
Delaware $8 $6 $6 $5 $5 $5 0.83 -1.7% -8.7% -25.7% -27.0% -42.3%
Florida $6 $6 $5 $5 $5 $5 0.84 -4.1% -0.8% -9.0% -26.9% -26.6%
Georgia $9 $9 $8 $7 $7 $7 1.28 -2.1% 2.8% -10.3% -23.9% -23.8%
Hawaii $12 $9 $9 $8 $10 $9 1.63 -6.8% 10.2% -4.2% -1.4% -23.0%
Idaho $11 $10 $7 $6 $7 $6 1.15 -3.8% -2.8% -15.3% -35.2% -41.4%
Illinois $7 $8 $8 $8 $7 $7 1.25 0.1% -12.2% -15.4% -10.2% -6.8%
Indiana $8 $7 $7 $6 $6 $5 0.97 -5.5% -8.9% -21.4% -26.9% -29.4%
Iowa $9 $11 $7 $6 $5 $5 0.92 -2.2% -20.4% -27.3% -52.5% -44.8%
Kansas $11 $11 $8 $7 $7 $7 1.27 0.1% -5.2% -16.2% -33.8% -39.2%
Kentucky $10 $10 $9 $7 $6 $6 1.05 -4.3% -16.3% -32.3% -39.7% -42.1%
Louisiana $9 $9 $8 $6 $5 $5 0.95 -2.1% -6.4% -31.5% -40.7% -41.4%
Maine $6 $6 $5 $5 $5 $4 0.79 -3.8% -7.3% -15.2% -28.4% -22.9%
Maryland $8 $7 $7 $6 $6 $6 1.16 -0.3% 1.7% -4.2% -13.8% -15.8%
Massachusetts $5 $4 $3 $3 $3 $3 0.58 -2.7% -6.4% 12.8% -28.6% -41.1%
Michigan $9 $8 $7 $5 $5 $4 0.81 -12.8% -16.9% -35.3% -46.8% -50.3%
Minnesota $11 $8 $6 $5 $5 $5 0.89 -0.6% -3.1% -22.6% -38.1% -55.7%
Mississippi $13 $13 $12 $10 $8 $8 1.50 -1.8% -18.9% -28.4% -35.4% -34.8%
Missouri $7 $7 $5 $4 $4 $4 0.71 0.9% -12.8% -22.7% -42.6% -43.8%
Montana $9 $7 $5 $6 $5 $5 0.85 -2.2% -15.4% -6.3% -30.1% -45.5%
Nebraska $12 $10 $10 $9 $9 $9 1.57 -2.9% -4.7% -15.2% -12.0% -28.2%
Nevada $6 $5 $5 $4 $5 $5 0.84 -2.8% 3.0% 0.3% -10.3% -23.7%
New Hampshire $3 $2 $2 $2 $2 $2 0.29 5.8% -28.3% -28.1% -30.4% -49.5%
New Jersey $6 $5 $6 $5 $4 $4 0.73 -8.2% -12.9% -29.4% -26.6% -32.3%
New Mexico $13 $12 $14 $13 $11 $11 2.07 0.7% -11.2% -19.9% -2.2% -11.2%
New York $8 $5 $6 $5 $5 $5 0.89 -4.3% -9.9% -17.7% -5.5% -36.8%
North Carolina $10 $11 $11 $9 $9 $9 1.59 -4.6% -5.9% -21.8% -20.4% -15.7%
North Dakota $14 $11 $11 $10 $8 $8 1.52 1.6% -17.2% -21.4% -23.7% -42.4%
Ohio $6 $7 $5 $4 $4 $4 0.73 -6.1% -10.8% -21.4% -40.8% -36.1%
Oklahoma $9 $10 $8 $6 $5 $5 0.84 -1.6% -27.2% -45.4% -52.8% -51.2%
Oregon $10 $7 $6 $5 $5 $5 0.88 0.7% 6.6% -17.6% -34.3% -50.6%
Pennsylvania $6 $5 $4 $3 $3 $2 0.45 -2.1% -9.7% -33.0% -53.9% -55.8%
Rhode Island $8 $5 $4 $3 $3 $3 0.54 -8.9% -8.3% -15.2% -40.3% -61.3%
South Carolina $13 $9 $7 $5 $5 $5 0.98 3.8% 0.8% -17.6% -37.2% -57.6%
South Dakota $9 $6 $6 $5 $5 $5 0.94 1.5% -1.2% -7.1% -20.3% -42.3%
Tennessee $8 $7 $7 $6 $6 $6 1.15 3.1% 12.2% -4.1% -4.4% -24.4%
Texas $9 $8 $8 $6 $6 $6 1.12 -0.2% -5.0% -23.7% -26.1% -35.2%
Utah $11 $10 $8 $7 $7 $7 1.31 1.7% -0.8% -6.2% -25.8% -35.9%
Vermont $6 $4 $4 $3 $3 $3 0.48 -1.5% -8.7% -26.6% -25.6% -52.2%
Virginia $8 $7 $5 $4 $4 $4 0.79 3.0% 4.7% -9.7% -35.4% -43.2%
Washington $10 $7 $5 $4 $4 $4 0.77 2.5% 3.3% -22.5% -35.8% -57.1%
West Virginia $9 $10 $8 $7 $6 $7 1.18 0.3% -13.2% -20.5% -32.0% -30.0%
Wisconsin $11 $9 $8 $7 $6 $6 1.03 -3.5% -16.0% -32.4% -38.7% -47.1%
Wyoming $11 $11 $13 $12 $12 $12 2.10 -4.1% -6.5% -12.8% 5.4% 4.4%
D.C. N/A N/A N/A $2 $2 $2 0.30 -3.1% 4.2% N/A N/A N/A
U.S. $8 $8 $7 $6 $6 $5 1.00 -2.2% -5.5% -17.8% -26.9% -34.8%
Notes:
  1. Total state and local support is the sum of 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.
  2. The years 1980 and 2001 are included in this table because they are the starting points of the historical SHEF dataset and modern SHEF data collection, respectively.
  3. The U.S. calculation does not include the District of Columbia. Data for the District of Columbia are not available prior to 2011.
Source(s):
  • State Higher Education Executive Officers Association

State Spotlight : Washington, D.C.

D.C.

For the first time, Washington, D.C., has been included in the figures and tables shared in this report. With 2.1 times more actual tax revenues per capita than the U.S. average, Washington, D.C., has above-average capacity to fund higher education. However, the district allocates just 1.2% of its tax and lottery revenues to higher education, less than any of the 50 states and just 21% of the U.S. average. As a result, Washington, D.C., allocates just $142 per capita and $1.63 per $1,000 in personal income for higher education support, less than all but one state (New Hampshire). Still, because of its high wealth and tax capacity, Washington, D.C., allocated roughly three times the national average in state and local support per FTE (excluding federal stimulus) in both 2019 and 2020.