At a national level, inflation-adjusted total taxable resources (TTR) per capita 5 5Total taxable resources per capita are inflated to 2020 dollars using Consumer Price Index (CPI-U). VIEW ALL FOOTNOTES have increased in 30 out of 40 years since 1980, reaching $72,952 per capita ($23.95 trillion total) in 2020, the second highest on record. Fiscal year 2020 TTR per capita was up 61.7% from $45,102 per capita ($10.1 trillion total) in 1980 but down 1.8% since 2019. This is the fourth consecutive year TTR has surpassed $70,000 per capita. TTR per capita has historically declined during past economic downturns (1981-1982, 1990-1991, 2001-2002, and 2008-2009). This trend continued during the brief recession caused by the COVID-19 pandemic in 2020. However, TTR also declined outside of an economic recession in 2013. Since 2021 TTR data are not yet available, it is unclear if the brief recession in 2020 will affect recent trends in TTR per capita.

Inflation-adjusted actual tax revenue (ATR) per capita 6 6Actual tax revenue per capita is inflated to 2020 dollars using Consumer Price Index (CPI-U). VIEW ALL FOOTNOTES has increased in 31 years since 1980—reaching an all-time high in 2019 ($5,760 per capita, or $1.88 trillion). Like TTR, ATR per capita previously declined during and immediately following economic recessions in 1981, 1991, 2001-2003, and 2008-2010. This historical trend continued, as fiscal year 2020 marked the second highest ATR per capita after a 2.0% year-over-year decline to $5,645 per capita ($1.85 trillion). However, ATR per capita in 2020 is still up 80.8% from 1980 ($3,121 per capita or $698.9 billion).

In 2020, the national effective tax rate was 7.7%, which was also the 40-year average effective tax rate from 1980 to 2020. 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% and 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 2020 for each state. Total taxable resources, an indicator of a state’s tax base, vary extensively by state.

  • TTR per capita ranged from $44,657 in Mississippi to $101,253 in New York and $126,085 in Washington, D.C.
  • In addition to New York and Washington, D.C., three states (Connecticut, Massachusetts, and Washington) also 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 $3,768 in Tennessee to $10,299 in New York and $11,630 in Washington, D.C.
  • Most states with high tax capacity (TTR) also had an above-average ATR in 2020. However, two states, New Hampshire and Wyoming, had above-average TTR but collected less than average ATR, indicating a below average tax rate. Of these states with higher tax capacity, New Hampshire allocated less than the average amount of higher education state and local support per FTE in 2020 (44.3% less), whereas Wyoming allocated more than double (2.0 times) the U.S. average. 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 not included. VIEW ALL FOOTNOTES
  • Four states (Hawaii, Maine, 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 2020 (2.3 times the U.S. average).

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 5.9% in Florida to 12.0% in Hawaii.
  • States with above-average total resources and tax rates tend to fund higher education at higher rates. Eight states (California, Connecticut, Illinois, Maryland, Minnesota, New Jersey, New York, North Dakota) and Washington, D.C., had both above-average TTR and effective tax rates. Of these states, only Minnesota had below-average state and local support per FTE in 2020.
  • States with a low tax rate and high total resources are relatively less likely to provide above-average funding to higher education. Eight states (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, only Massachusetts, Nebraska, and Wyoming provided above-average state and local support per FTE in 2020.
  • Similarly, states with a high tax rate but low total resources are less likely to provide above-average funding to higher education. Fourteen 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 2020.
Figure 1

Effective Tax Rates by State, FY 2020


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 data are state and local tax revenues. Total taxable resources equals the taxable gross state product (GDP).
Source(s):
  • State Higher Education Executive Officers Association
  • Actual tax revenues are from the U.S. Census Bureau 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 2020

Actual Tax Revenues (ATR) Total Taxable Resources (TTR) Effective Tax Rate (ATR/TTR)
Dollars Per Capita Index to U.S. Average Dollars Per Capita Index to U.S. Average Tax Rate Index to U.S. Average
Alabama $3,846 0.68 $53,423 0.73 7.2% 0.93
Alaska $4,515 0.80 $72,110 0.99 6.3% 0.81
Arizona $4,071 0.72 $59,861 0.82 6.8% 0.88
Arkansas $4,323 0.77 $53,294 0.73 8.1% 1.05
California $7,012 1.24 $85,809 1.18 8.2% 1.06
Colorado $5,694 1.01 $77,955 1.07 7.3% 0.94
Connecticut $8,530 1.51 $99,691 1.37 8.6% 1.11
Delaware $5,950 1.05 $90,000 1.23 6.6% 0.85
Florida $4,062 0.72 $68,421 0.94 5.9% 0.77
Georgia $4,113 0.73 $65,318 0.90 6.3% 0.81
Hawaii $7,672 1.36 $63,789 0.87 12.0% 1.55
Idaho $4,208 0.75 $58,019 0.80 7.3% 0.94
Illinois $6,459 1.14 $77,295 1.06 8.4% 1.08
Indiana $4,745 0.84 $62,695 0.86 7.6% 0.98
Iowa $5,484 0.97 $70,136 0.96 7.8% 1.01
Kansas $5,252 0.93 $71,379 0.98 7.4% 0.95
Kentucky $4,359 0.77 $54,781 0.75 8.0% 1.03
Louisiana $4,403 0.78 $54,505 0.75 8.1% 1.04
Maine $6,499 1.15 $61,229 0.84 10.6% 1.37
Maryland $6,942 1.23 $82,973 1.14 8.4% 1.08
Massachusetts $7,399 1.31 $98,551 1.35 7.5% 0.97
Michigan $4,298 0.76 $59,370 0.81 7.2% 0.94
Minnesota $6,585 1.17 $74,840 1.03 8.8% 1.14
Mississippi $3,942 0.70 $44,657 0.61 8.8% 1.14
Missouri $3,976 0.70 $61,819 0.85 6.4% 0.83
Montana $4,538 0.80 $59,339 0.81 7.6% 0.99
Nebraska $5,737 1.02 $77,720 1.07 7.4% 0.95
Nevada $4,837 0.86 $68,430 0.94 7.1% 0.91
New Hampshire $5,196 0.92 $83,628 1.15 6.2% 0.80
New Jersey $7,909 1.40 $88,469 1.21 8.9% 1.16
New Mexico $5,039 0.89 $52,962 0.73 9.5% 1.23
New York $10,299 1.82 $101,253 1.39 10.2% 1.31
North Carolina $4,191 0.74 $63,287 0.87 6.6% 0.86
North Dakota $7,696 1.36 $77,384 1.06 9.9% 1.29
Ohio $4,896 0.87 $64,814 0.89 7.6% 0.98
Oklahoma $4,167 0.74 $54,031 0.74 7.7% 1.00
Oregon $5,233 0.93 $66,270 0.91 7.9% 1.02
Pennsylvania $5,637 1.00 $70,631 0.97 8.0% 1.03
Rhode Island $5,938 1.05 $72,862 1.00 8.1% 1.05
South Carolina $4,036 0.72 $55,936 0.77 7.2% 0.93
South Dakota $4,466 0.79 $72,819 1.00 6.1% 0.79
Tennessee $3,768 0.67 $61,944 0.85 6.1% 0.79
Texas $4,782 0.85 $68,497 0.94 7.0% 0.90
Utah $4,576 0.81 $70,519 0.97 6.5% 0.84
Vermont $6,641 1.18 $65,700 0.90 10.1% 1.31
Virginia $5,646 1.00 $76,701 1.05 7.4% 0.95
Washington $6,240 1.11 $92,711 1.27 6.7% 0.87
West Virginia $4,265 0.76 $50,466 0.69 8.5% 1.09
Wisconsin $5,330 0.94 $67,146 0.92 7.9% 1.03
Wyoming $5,326 0.94 $81,018 1.11 6.6% 0.85
D.C. $11,630 2.06 $126,085 1.73 9.2% 1.19
U.S. $5,645 1.00 $72,952 1.00 7.7% 1.00
Notes:
  1. Effective tax rates are calculated from actual tax revenues divided by total taxable resources.
  2. Actual tax (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 2020

Nationally, 5.7% of state revenue ($106.8 billion) was allocated to higher education in 2020. This represents a 0.9 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 that 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 2020 it had decreased by one third to 5.7%. Meanwhile, ATR and lottery profits increased 82.4% from an inflation-adjusted $3,135 per capita ($702.0 billion) in 1980 to $5,717 per capita (nearly $1.9 trillion) in 2020.

State Comparisons

Figure 2 shows that the percentage of revenue allocated to higher education ranged from 1.3% in Washington, D.C., and 2.1% in New Hampshire to 13.8% in Wyoming. New Mexico and North Carolina (both 10.4%) were the only other states to allocate more than 10% of revenue to higher education, while Vermont (2.3%), Pennsylvania (2.7%), and Rhode Island (2.9%) 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 2020. This is an indication that they 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 three states (Alaska, Florida, and Wyoming) increased the portion of revenue allocated to higher education from 2008-2020. Of the 47 states with a lower allocation to higher education in 2020, nine states lowered their allocation by at least 2.0 percentage points.

Between fiscal years 2015-2020, 20 states and Washington, D.C., increased the percentage of revenue allocated to higher education. The largest increases were 2.7 percentage points in Wyoming and 1.2 percentage points in Tennessee. In the remaining 30 states, the portion of revenue allocated to higher education continued to decline from 2015-2020 despite a strong economy for most of that time period. Five states saw declines greater than 1.0 percentage point, the largest of which was in Alaska (5.6 percentage points). From 2019 to 2020, 41 states and Washington, D.C., increased the percentage of revenue allocated to higher education while the remaining nine saw declines (Table 2). No states experienced a decline greater than 1.0 percentage point in the last year. Indiana had the largest decrease (0.5 percentage point), while Utah had the greatest increase (1.2 percentage points).

Figure 2

Percentage of Tax and Lottery Revenues Allocated to Higher Education by State, FY 2020


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 Annual Survey of State and Local Government Finances.
  • Lottery profits are from the North American Association of State and Provincial Lotteries.
Table 2

Percentage of Tax and Lottery Revenues Allocated to Higher Education by State, FY 1980-2020

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 12.6% 11.1% 10.7% 9.6% 9.1% 9.3% 1.63 0.2 -0.4 -1.5 -1.8 -3.3
Alaska 5.2% 7.7% 5.5% 15.5% 9.4% 9.9% 1.74 0.5 -5.6 4.4 2.2 4.7
Arizona 10.7% 8.9% 9.3% 7.4% 6.1% 6.5% 1.14 0.4 -0.9 -2.8 -2.4 -4.2
Arkansas 10.5% 9.9% 10.1% 8.8% 7.9% 8.1% 1.42 0.1 -0.8 -2.1 -1.8 -2.4
California 10.5% 8.0% 6.9% 6.4% 6.4% 6.8% 1.20 0.5 0.5 -0.1 -1.2 -3.7
Colorado 7.8% 5.4% 2.5% 3.4% 3.3% 3.7% 0.64 0.3 0.3 1.1 -1.7 -4.2
Connecticut 5.3% 5.5% 6.0% 4.5% 4.0% 4.1% 0.72 0.1 -0.4 -1.9 -1.4 -1.2
Delaware 8.0% 6.7% 5.9% 4.8% 4.1% 4.3% 0.75 0.1 -0.5 -1.6 -2.4 -3.8
Florida 8.5% 7.3% 5.5% 6.0% 6.2% 6.2% 1.09 0.0 0.3 0.8 -1.0 -2.3
Georgia 10.3% 9.1% 8.5% 7.9% 8.2% 8.6% 1.50 0.4 0.7 0.1 -0.5 -1.8
Hawaii 10.9% 7.8% 8.1% 6.6% 7.0% 7.1% 1.24 0.1 0.5 -1.1 -0.8 -3.8
Idaho 12.7% 9.3% 8.5% 7.5% 7.6% 7.4% 1.30 -0.2 -0.1 -1.2 -1.9 -5.3
Illinois 7.4% 7.8% 8.1% 6.9% 6.4% 6.6% 1.16 0.2 -0.4 -1.5 -1.2 -0.8
Indiana 9.5% 7.8% 6.6% 6.4% 6.2% 5.7% 1.01 -0.5 -0.7 -0.9 -2.1 -3.8
Iowa 9.1% 10.9% 6.8% 6.2% 5.0% 5.1% 0.90 0.1 -1.1 -1.7 -5.8 -4.0
Kansas 12.5% 10.4% 8.2% 7.9% 6.9% 7.4% 1.30 0.5 -0.5 -0.8 -3.0 -5.1
Kentucky 11.0% 9.5% 8.8% 7.1% 6.2% 6.1% 1.07 -0.1 -1.0 -2.7 -3.4 -4.9
Louisiana 9.4% 8.4% 8.0% 6.0% 5.6% 5.9% 1.03 0.3 -0.1 -2.1 -2.6 -3.6
Maine 5.7% 5.2% 4.4% 4.0% 3.6% 3.6% 0.64 0.0 -0.4 -0.8 -1.5 -2.0
Maryland 7.6% 7.7% 6.7% 6.0% 5.9% 6.1% 1.08 0.2 0.2 -0.6 -1.5 -1.5
Massachusetts 4.6% 4.2% 2.8% 3.3% 3.2% 3.3% 0.59 0.1 0.0 0.5 -0.9 -1.2
Michigan 8.3% 8.2% 6.6% 5.7% 5.5% 5.3% 0.94 -0.2 -0.4 -1.3 -2.9 -3.0
Minnesota 10.1% 7.0% 5.8% 4.4% 4.3% 4.6% 0.80 0.3 0.2 -1.3 -2.4 -5.5
Mississippi 14.0% 13.1% 11.8% 9.7% 8.3% 8.6% 1.52 0.4 -1.0 -3.1 -4.4 -5.4
Missouri 8.6% 7.5% 5.8% 5.2% 4.6% 5.0% 0.88 0.4 -0.3 -0.8 -2.5 -3.6
Montana 7.8% 6.4% 5.5% 5.9% 5.3% 5.5% 0.97 0.2 -0.4 0.0 -0.9 -2.3
Nebraska 11.7% 9.8% 10.3% 9.0% 8.7% 8.7% 1.53 0.0 -0.3 -1.6 -1.1 -3.0
Nevada 7.5% 5.9% 4.5% 4.8% 5.0% 5.2% 0.91 0.2 0.4 0.6 -0.7 -2.3
New Hampshire 4.3% 2.4% 2.7% 2.6% 1.8% 2.1% 0.36 0.2 -0.6 -0.7 -0.3 -2.3
New Jersey 6.0% 5.1% 4.9% 4.1% 3.5% 3.6% 0.63 0.1 -0.5 -1.3 -1.5 -2.5
New Mexico 12.7% 10.2% 14.9% 11.8% 9.6% 10.4% 1.82 0.7 -1.5 -4.6 0.1 -2.4
New York 5.7% 3.8% 4.1% 3.6% 3.5% 3.5% 0.62 0.0 -0.1 -0.6 -0.3 -2.2
North Carolina 11.6% 11.5% 11.5% 10.1% 10.1% 10.4% 1.82 0.3 0.3 -1.1 -1.1 -1.3
North Dakota 13.8% 10.6% 8.9% 5.9% 5.5% 6.5% 1.13 1.0 0.6 -2.5 -4.1 -7.4
Ohio 7.6% 6.4% 4.9% 4.4% 4.4% 4.3% 0.75 -0.1 -0.1 -0.6 -2.2 -3.4
Oklahoma 11.1% 9.6% 10.1% 7.6% 5.7% 5.9% 1.04 0.2 -1.6 -4.2 -3.7 -5.1
Oregon 10.3% 7.6% 6.0% 4.6% 4.6% 5.1% 0.90 0.5 0.6 -0.8 -2.5 -5.1
Pennsylvania 5.7% 5.6% 3.7% 2.8% 2.5% 2.7% 0.47 0.2 -0.1 -1.0 -2.9 -3.0
Rhode Island 7.6% 4.3% 3.1% 2.8% 2.9% 2.9% 0.52 0.1 0.1 -0.2 -1.3 -4.7
South Carolina 14.4% 9.5% 7.3% 6.1% 5.9% 6.3% 1.10 0.4 0.2 -1.1 -3.2 -8.1
South Dakota 9.4% 7.0% 6.9% 6.4% 6.2% 6.5% 1.14 0.3 0.1 -0.5 -0.5 -2.9
Tennessee 10.6% 8.0% 8.0% 7.2% 8.5% 8.4% 1.48 -0.2 1.2 0.4 0.4 -2.2
Texas 11.8% 9.2% 8.9% 7.2% 6.2% 6.6% 1.16 0.4 -0.6 -2.3 -2.5 -5.2
Utah 11.3% 9.2% 8.3% 8.2% 7.2% 8.4% 1.47 1.2 0.2 0.1 -0.8 -2.9
Vermont 5.4% 2.9% 3.1% 2.5% 2.2% 2.3% 0.41 0.1 -0.1 -0.8 -0.6 -3.1
Virginia 9.5% 7.3% 5.6% 4.8% 4.6% 4.8% 0.84 0.2 -0.1 -0.8 -2.5 -4.7
Washington 11.2% 7.0% 5.8% 4.6% 4.4% 4.7% 0.82 0.3 0.1 -1.2 -2.3 -6.5
West Virginia 9.4% 8.8% 6.9% 6.3% 5.7% 6.5% 1.14 0.8 0.2 -0.4 -2.3 -2.9
Wisconsin 10.2% 8.8% 7.6% 6.7% 5.9% 5.9% 1.03 0.0 -0.9 -1.7 -3.0 -4.3
Wyoming 9.2% 9.3% 9.8% 11.0% 13.4% 13.8% 2.42 0.3 2.7 3.9 4.5 4.5
D.C. N/A N/A N/A 1.1% 1.2% 1.3% 0.22 0.1 0.1 N/A N/A N/A
U.S. 8.7% 7.3% 6.5% 5.8% 5.5% 5.7% 1.00 0.2 -0.1 -0.8 -1.6 -3.0
Notes:
  1. Allocation to higher education is higher education support as a proportion of actual tax revenues and lottery profits. Actual tax revenue (ATR) data are the per-capita general revenues derived from taxation by state and local governments. Lottery profits are the revenues from all lotto games and gaming operations, where applicable, that are transferred to beneficiaries.
  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. Year change columns show percentage point increases or decreases, not percent change.
  4. 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.
  5. 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 2021

Nationally, states allocated $327 per capita to higher education in 2021. Inflation-adjusted state support per capita has increased 14.7% since the start of the SHEF dataset in 1980, when support totaled $286 per capita. 10 10Higher education support per capita is adjusted for inflation using the 2021 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. While per capita funding has increased, the proportion of the population who attends college has increased since 1980, and public net FTE enrollment has increased 54.3% since 1980. Higher education support per capita continued to follow this trend in 2021, with a decrease of 3.9% from 2020 to 2021 and an increase of only 0.1% since 2016 (Table 3). Following the brief, pandemic-induced economic recession in 2020, per capita support in 2021, on a national level, was down 11.8% and 10.6% 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 2021, from $107 in New Hampshire to $740 in Wyoming. Six states (Colorado, Missouri, New Hampshire, Pennsylvania, Rhode Island, and Vermont) and Washington, D.C., provided less than $200 in per capita support for higher education, while another five states (California, Hawaii, Nebraska, New Mexico, and Wyoming) provided at least $500 per capita.

  • From 2020 to 2021, support per capita decreased in 43 states (Table 3). The largest decline was in Colorado (43.4%). 11 11This large decline in Colorado was entirely due to the state’s reliance on federal stimulus funding in 2021. VIEW ALL FOOTNOTES Nevada (19.6%) and New Jersey (16.6%) were the only other states in which year-over-year support per capita decreased more than 15%. Only Vermont (19.4%), Washington, D.C. (10.9%), and Michigan (8.3%) increased support per capita by more than 5% from 2020 to 2021. 
  • Higher education support per capita has declined in 32 states since 2011, and 43 states since 2008 (prior to the Great Recession).
  • Since 1980, support per capita has increased in more than half of all states (29). In five states, support per capita has increased by more than 50%. The largest increases were in Connecticut (98.8%), Illinois (70.0%), and Wyoming (67.9%). 12 12In 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 21 states with decreases in support per capita since 1980, seven states had declines greater than 20%, the largest were Colorado (51.9%), Alaska (41.4%), and Arizona (27.4%).
Figure 3

Higher Education Support per Capita by State, FY 2021


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. Census Bureau Population and Housing Unit Estimates.
Table 3

Higher Education Support per Capita by State, FY 1980-2021 (Constant Dollars)

1980 2001 2011 2016 2020 2021 Index to U.S. Average % Change Since 2020 % Change Since 2016 % Change Since 2011 % Change Since 2001 % Change Since 1980
Alabama $271 $375 $359 $348 $374 $353 1.08 -5.5% 1.3% -1.8% -5.9% 30.0%
Alaska $706 $470 $591 $578 $468 $414 1.26 -11.5% -28.4% -30.0% -11.9% -41.4%
Arizona $365 $358 $347 $277 $279 $265 0.81 -5.2% -4.4% -23.6% -26.1% -27.4%
Arkansas $226 $355 $426 $388 $367 $348 1.06 -5.2% -10.2% -18.3% -2.2% 53.7%
California $414 $477 $418 $456 $505 $516 1.58 2.2% 13.2% 23.3% 8.1% 24.7%
Colorado $258 $268 $176 $195 $219 $124 0.38 -43.4% -36.2% -29.6% -53.6% -51.9%
Connecticut $190 $386 $446 $410 $372 $377 1.15 1.4% -7.9% -15.3% -2.1% 98.8%
Delaware $282 $359 $284 $276 $275 $263 0.80 -4.3% -4.4% -7.4% -26.7% -6.7%
Florida $218 $298 $242 $246 $270 $264 0.81 -2.5% 7.1% 9.0% -11.5% 20.8%
Georgia $265 $428 $362 $339 $379 $340 1.04 -10.3% 0.3% -6.1% -20.5% 28.5%
Hawaii $462 $427 $443 $479 $568 $551 1.68 -2.9% 15.1% 24.4% 29.0% 19.3%
Idaho $319 $391 $279 $305 $328 $307 0.94 -6.4% 0.8% 9.9% -21.4% -3.7%
Illinois $266 $402 $415 $366 $450 $452 1.38 0.6% 23.7% 9.1% 12.6% 70.0%
Indiana $232 $322 $290 $297 $288 $262 0.80 -8.9% -11.7% -9.7% -18.6% 12.9%
Iowa $290 $462 $322 $318 $294 $277 0.84 -5.9% -13.0% -14.2% -40.2% -4.8%
Kansas $383 $471 $397 $382 $410 $389 1.19 -5.2% 1.7% -2.0% -17.3% 1.4%
Kentucky $270 $378 $345 $310 $282 $265 0.81 -6.3% -14.6% -23.3% -30.1% -2.0%
Louisiana $265 $345 $343 $285 $273 $245 0.75 -10.2% -14.1% -28.5% -29.0% -7.5%
Maine $160 $271 $241 $243 $248 $235 0.72 -5.4% -3.2% -2.7% -13.5% 46.6%
Maryland $289 $426 $399 $423 $456 $432 1.32 -5.3% 2.2% 8.4% 1.4% 49.7%
Massachusetts $189 $272 $209 $248 $264 $259 0.79 -1.8% 4.6% 24.2% -4.7% 37.0%
Michigan $301 $395 $292 $268 $246 $267 0.82 8.3% -0.4% -8.6% -32.5% -11.3%
Minnesota $376 $408 $314 $316 $316 $298 0.91 -5.6% -5.5% -5.0% -26.9% -20.6%
Mississippi $300 $445 $399 $416 $359 $331 1.01 -7.8% -20.3% -17.0% -25.7% 10.3%
Missouri $215 $301 $221 $220 $210 $197 0.60 -6.1% -10.1% -10.7% -34.5% -8.2%
Montana $257 $245 $217 $293 $263 $254 0.77 -3.4% -13.4% 17.0% 3.4% -1.5%
Nebraska $372 $455 $509 $540 $524 $513 1.57 -2.2% -4.9% 0.7% 12.8% 38.0%
Nevada $250 $263 $274 $246 $262 $211 0.64 -19.6% -14.3% -23.2% -20.1% -16.0%
New Hampshire $108 $133 $126 $106 $113 $107 0.33 -5.4% 1.0% -14.9% -19.4% -0.7%
New Jersey $230 $339 $323 $321 $302 $252 0.77 -16.6% -21.6% -22.0% -25.9% 9.3%
New Mexico $372 $444 $550 $560 $548 $515 1.57 -6.1% -8.0% -6.4% 16.1% 38.4%
New York $279 $295 $353 $368 $384 $331 1.01 -13.8% -10.1% -6.3% 12.0% 18.5%
North Carolina $288 $475 $486 $458 $462 $445 1.36 -3.6% -2.7% -8.3% -6.3% 54.5%
North Dakota $385 $442 $556 $606 $520 $487 1.49 -6.4% -19.7% -12.5% 10.1% 26.6%
Ohio $204 $304 $226 $235 $223 $219 0.67 -1.6% -6.5% -2.9% -27.9% 7.5%
Oklahoma $306 $383 $360 $297 $260 $238 0.73 -8.3% -19.8% -33.8% -37.8% -22.2%
Oregon $337 $331 $258 $263 $290 $287 0.88 -1.0% 8.9% 11.1% -13.5% -14.8%
Pennsylvania $185 $261 $186 $156 $162 $152 0.47 -5.7% -2.1% -18.0% -41.5% -17.8%
Rhode Island $252 $246 $180 $192 $191 $183 0.56 -4.2% -4.7% 1.8% -25.6% -27.2%
South Carolina $338 $342 $228 $252 $272 $257 0.79 -5.3% 2.0% 12.8% -24.8% -24.0%
South Dakota $245 $275 $273 $288 $312 $298 0.91 -4.5% 3.4% 9.1% 8.3% 21.9%
Tennessee $229 $280 $315 $289 $337 $336 1.03 -0.2% 16.5% 6.9% 19.9% 46.7%
Texas $322 $380 $366 $341 $335 $326 1.00 -2.7% -4.3% -10.8% -14.1% 1.5%
Utah $321 $378 $302 $353 $401 $371 1.13 -7.4% 5.1% 22.7% -1.8% 15.4%
Vermont $162 $168 $180 $163 $162 $193 0.59 19.4% 18.7% 7.1% 15.3% 19.3%
Virginia $268 $354 $259 $254 $284 $289 0.88 1.5% 13.6% 11.7% -18.3% 7.6%
Washington $374 $340 $285 $279 $306 $320 0.98 4.7% 14.9% 12.6% -5.8% -14.3%
West Virginia $246 $347 $325 $298 $306 $295 0.90 -3.5% -1.0% -9.3% -15.0% 19.8%
Wisconsin $356 $440 $413 $332 $330 $325 0.99 -1.6% -2.1% -21.4% -26.2% -8.8%
Wyoming $441 $523 $796 $877 $768 $740 2.26 -3.6% -15.6% -7.0% 41.5% 67.9%
D.C. N/A N/A $151 $138 $156 $172 0.53 10.9% 24.8% 14.5% N/A N/A
U.S. $286 $366 $332 $327 $341 $327 1.00 -3.9% 0.1% -1.5% -10.6% 14.7%
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 2021 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 2021

In 2021, states allocated $5.30 for every $1,000 of personal income to higher education. This amount has been steadily declining over time. In 1980, states provided an average of $9.55 per $1,000 to higher education. This amount dipped slightly in 1990 ($8.91), but by 2000 (a high point in state support per FTE enrollment), support per $1,000 of personal income had declined to $7.98. Despite declines in personal income due to the Great Recession, higher education support per $1,000 of personal income was down to $6.92 by 2010. Since 2010, this measure has declined in nine years, including four consecutive years from 2018-2021. Fiscal year 2021 marks the second largest year-over-year decline (8.2%), only trailing 2012 by 1.5 percentage points (9.7%). In total, higher education support per $1,000 of personal income has declined 44.4% since 1980. This is because inflation-adjusted personal income increased 205.5% from 1980 to 2021, while inflation-adjusted higher education support increased only 69.8%. 15 15Data are adjusted for inflation using the 2021 Consumer Price Index (CPI-U). VIEW ALL FOOTNOTES 16 16Student FTE enrollment also increased 54.3% from 1980 to 2021. VIEW ALL FOOTNOTES From 2008 to 2021, personal income increased 35.7% while higher education support decreased 2.9%.

State Comparisons

Figure 4 shows wide variation in higher education support per $1,000 of personal income across the states in fiscal year 2021, ranging from $1.54 in New Hampshire to $10.89 in Wyoming. Four states (Colorado, New Hampshire, Rhode Island, and Pennsylvania) 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 10% for support per capita and per $1,000 of personal income, yet is in the top 10% 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 high ability to pay for higher education and the District’s low enrollment relative to total population.

From 2020-2021, support per $1,000 of personal income decreased in 48 states. The largest decreases were 45.5% in Colorado and 24.3% in Nevada. The only year-over-year increases in state support for higher education per $1,000 of personal income were in Vermont (13.1%), Connecticut (1.3%), and Washington, D.C. (1.0%). 

Between 2011 and 2021, only one state, Hawaii (2.6%), increased higher education support per $1,000 of personal income (Table 4). 

  • Support per $1,000 of personal income decreased by more than 20% in 30 states from 2011 to 2021. 
  • Of the 49 states with declines in support per $1,000 of personal income over the last 10 years, the largest decreases were in Colorado (48.9%), Oklahoma (44.4%), Arizona (43.3%), and Nevada (40.0%).  

Between 2001 and 2021, higher education support per $1,000 of personal income declined in all 50 states. Five states (Colorado, Iowa, Louisiana, Oklahoma, and Pennsylvania) had declines greater than 50%. Similarly, all 50 states had declines in support per $1,000 of personal income from 1980 to 2021. Across the nation, 21 states saw declines greater than 50%. The largest declines since the start of the SHEF dataset in 1980 were in Colorado (77.4%), Rhode Island (67.0%), South Carolina (65.8%), and Minnesota (63.1%). 

Figure 4

Higher Education Support per $1,000 of Personal Income by State, FY 2021


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 1980-2021

1980 2001 2011 2016 2020 2021 Index to U.S. Average % Change Since 2020 % Change Since 2016 % Change Since 2011 % Change Since 2001 % Change Since 1980
Alabama $12 $10 $9 $8 $8 $7 1.38 -9.7% -7.7% -17.0% -27.5% -36.6%
Alaska $16 $10 $10 $9 $7 $6 1.19 -13.2% -28.7% -36.4% -34.4% -60.2%
Arizona $13 $9 $9 $6 $6 $5 0.91 -15.8% -22.0% -43.3% -45.9% -62.9%
Arkansas $10 $10 $11 $9 $8 $7 1.32 -12.3% -18.9% -35.9% -31.7% -29.0%
California $12 $9 $8 $7 $7 $7 1.36 -2.9% -2.5% -10.4% -23.6% -39.3%
Colorado $8 $5 $4 $3 $3 $2 0.35 -45.5% -43.7% -48.9% -64.2% -77.4%
Connecticut $5 $6 $6 $5 $5 $5 0.89 1.3% -12.1% -20.9% -20.0% -12.4%
Delaware $9 $7 $6 $5 $5 $5 0.86 -6.1% -10.6% -22.1% -34.4% -50.1%
Florida $8 $7 $5 $5 $5 $4 0.84 -6.3% -6.8% -13.7% -32.9% -40.8%
Georgia $10 $10 $9 $7 $7 $6 1.18 -15.1% -12.8% -27.8% -35.7% -40.1%
Hawaii $14 $10 $9 $9 $10 $9 1.72 -5.6% 4.2% 2.6% -4.3% -32.4%
Idaho $12 $10 $7 $7 $7 $6 1.14 -11.4% -12.1% -17.3% -40.7% -51.3%
Illinois $8 $8 $8 $6 $7 $7 1.33 -2.8% 13.0% -13.5% -11.4% -12.7%
Indiana $8 $7 $7 $6 $6 $5 0.92 -13.4% -20.8% -28.0% -34.9% -40.8%
Iowa $10 $11 $7 $6 $6 $5 0.94 -11.4% -18.8% -29.2% -55.2% -50.0%
Kansas $13 $11 $8 $7 $7 $7 1.27 -9.2% -5.6% -19.2% -38.3% -47.8%
Kentucky $11 $10 $9 $7 $6 $5 0.99 -14.5% -24.9% -38.9% -47.6% -52.8%
Louisiana $11 $9 $7 $6 $5 $5 0.86 -17.1% -22.7% -39.3% -51.8% -56.8%
Maine $6 $6 $5 $5 $5 $4 0.76 -13.0% -17.5% -23.0% -37.4% -37.4%
Maryland $9 $8 $7 $7 $7 $6 1.20 -7.2% -4.1% -4.5% -19.2% -25.6%
Massachusetts $6 $5 $3 $3 $3 $3 0.60 -6.3% -9.0% -3.2% -32.2% -48.4%
Michigan $10 $9 $7 $5 $5 $5 0.88 -1.7% -14.4% -31.1% -45.1% -51.6%
Minnesota $12 $8 $6 $5 $5 $5 0.87 -10.7% -14.6% -25.5% -44.6% -63.1%
Mississippi $14 $13 $11 $10 $9 $7 1.37 -17.5% -30.2% -31.6% -46.2% -48.3%
Missouri $8 $7 $5 $5 $4 $4 0.68 -12.2% -19.7% -26.9% -48.9% -52.8%
Montana $10 $7 $5 $6 $5 $4 0.84 -11.1% -24.3% -10.3% -36.3% -54.5%
Nebraska $13 $10 $10 $9 $9 $9 1.63 -6.9% -8.2% -16.0% -16.1% -33.3%
Nevada $7 $5 $6 $5 $5 $4 0.69 -24.3% -25.9% -40.0% -32.6% -48.7%
New Hampshire $4 $2 $2 $2 $2 $2 0.29 -7.5% -10.3% -30.6% -38.2% -58.8%
New Jersey $7 $6 $5 $5 $4 $3 0.65 -14.7% -26.5% -34.0% -39.2% -48.9%
New Mexico $15 $13 $14 $13 $12 $10 1.98 -12.9% -19.2% -23.0% -16.8% -28.4%
New York $9 $5 $6 $6 $5 $4 0.84 -14.9% -19.6% -25.2% -17.3% -49.1%
North Carolina $12 $11 $11 $10 $9 $8 1.56 -10.3% -15.2% -26.4% -27.1% -30.1%
North Dakota $14 $11 $11 $10 $9 $8 1.45 -11.4% -22.0% -27.1% -31.6% -46.7%
Ohio $7 $7 $5 $5 $4 $4 0.74 -7.4% -15.9% -23.3% -43.8% -43.4%
Oklahoma $11 $10 $8 $6 $5 $4 0.85 -12.7% -23.5% -44.4% -56.9% -59.7%
Oregon $11 $8 $6 $5 $5 $5 0.92 -7.6% -7.2% -18.4% -36.4% -55.8%
Pennsylvania $6 $6 $4 $3 $3 $2 0.45 -9.9% -12.3% -34.2% -57.3% -61.5%
Rhode Island $9 $5 $3 $3 $3 $3 0.55 -7.7% -14.9% -16.4% -45.3% -67.0%
South Carolina $15 $9 $6 $6 $6 $5 0.94 -12.4% -12.2% -14.0% -44.1% -65.8%
South Dakota $9 $7 $6 $5 $6 $5 0.90 -13.1% -8.7% -13.3% -29.0% -48.1%
Tennessee $9 $7 $7 $6 $7 $6 1.18 -3.8% 4.2% -14.3% -8.1% -33.1%
Texas $11 $9 $8 $6 $6 $6 1.08 -4.7% -10.7% -27.3% -35.4% -48.8%
Utah $13 $10 $8 $8 $8 $7 1.30 -12.8% -10.9% -12.5% -32.6% -46.7%
Vermont $6 $4 $4 $3 $3 $3 0.58 13.1% 5.9% -14.2% -18.6% -51.2%
Virginia $9 $7 $5 $4 $5 $5 0.85 -1.5% 5.1% -4.2% -36.4% -48.4%
Washington $11 $7 $6 $5 $5 $5 0.86 -0.3% -2.4% -18.7% -33.4% -60.1%
West Virginia $10 $10 $8 $7 $7 $6 1.14 -10.4% -13.5% -27.0% -40.6% -42.0%
Wisconsin $12 $10 $9 $6 $6 $6 1.06 -5.1% -10.9% -36.2% -42.6% -53.4%
Wyoming $13 $12 $14 $13 $12 $11 2.05 -6.1% -19.1% -23.9% -6.7% -17.6%
D.C. N/A N/A $2 $2 $2 $2 0.34 1.0% 11.0% -7.9% N/A N/A
U.S. $10 $8 $7 $6 $6 $5 1.00 -8.2% -10.7% -22.1% -32.6% -44.4%
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