Higher education is the largest general fund budget category in . 1 https://www.nasbo.org/reports-data/state-expenditure-report National Association of State Budget Officers. (2019). State expenditure report: Fiscal years 2017-2019. NASBO. VIEW ALL FOOTNOTES State and local government funding for higher education totaled in fiscal year . In addition, public institutions in received in tuition revenue. These two revenue sources served total FTE students at public institutions.
State and Local Funding
State tax appropriations and local tax support plus additional non-tax funds that support all of higher education.
Total Tuition Revenue
Gross tuition plus mandatory “education and general” fees from public institutions, including all student financial aid.
Total FTE Enrollment
Gross full-time equivalent (FTE) enrollment calculated from the aggregate number of enrolled credit hours.
How has Student Enrollment Changed Over Time?
has the net FTE enrollment i Net full-time equivalent (FTE) enrollment Full-time equivalent (FTE) enrollment converts student credit hours to full-time academic year students. FTE excludes medical students. VIEW ALL DATA DEFINITIONS in the United States. In recent years, enrollment has remained relatively stable both nationally and in most states. In the last year, net full-time equivalent (FTE) enrollment, which excludes medical students, in . Changes in enrollment are often counter-cyclical to economic downturns. In , net FTE enrollment from 2008 through 2012 due to the Great Recession and has since as the economy recovered.
State and Local Funding
Where Does Funding Come From?
State and local funding for higher education comes from multiple sources. In most states, state tax appropriations are the largest source of funding. i State tax appropriations Appropriations from state government taxes for public and private higher education institution and agency annual operating expenses, excluding capital outlay (for new construction or debt retirement) and revenue from auxiliary enterprises. VIEW ALL DATA DEFINITIONS In 29 states, local appropriations also fund higher education. i Local appropriations The sum of all tax appropriations from any government entity below the state level to public institutions for operating expenses. Excludes any grants from local nonprofit organizations such as chambers of commerce, charitable foundations, and other entities. VIEW ALL DATA DEFINITIONS has in local appropriations.
Note: Percentages may add up to more than 100 due to funds that were returned to the state or spread over other years.
How is the Funding Used?
In almost every state, the primary use of state and local funds for higher education is for general operations at public institutions. i General operating The portion of state and local support appropriated directly to public institutions for the purposes of general operations. VIEW ALL DATA DEFINITIONS allocates of all funding for this purpose. funds for research, agriculture, and medical (RAM) purposes, which is .
Per-Student Education Appropriations Over Time
Higher education often faces the largest cuts of any budget category during economic recessions. As a result, state funding has changed over time. In most states, funding in remained below historic levels. 2 Post-Recession Trends in Higher Education Revenues. See the Issue Brief on VIEW ALL FOOTNOTES Education appropriations per FTE (a measure of state and local support for public higher education, excluding RAM) in have since . i Education appropriations Education appropriations measure state and local support available for public higher education operating expenses and exclude research, hospitals, and medical education. VIEW ALL DATA DEFINITIONS In , public institutions in had in education appropriations per FTE, approximately the U.S. average.
General operating appropriations in have per FTE from in to in . States differ in their ability to fund higher education. When considering state wealth and capacity, in had funding per capita and funding per $1,000 of personal income.
Additional Measures of State and Local Support
Note: Data availability for these metrics is delayed by one year.
State Financial Aid
In , provided in student financial aid (excluding loans). i Total student financial aid Total student financial aid is the sum of any state appropriated student financial aid for public, independent, and out-of-state institutions, excluding loans. VIEW ALL DATA DEFINITIONS Of that aid, went to students attending public institutions; went to students at independent (private) institutions, and supported students at out-of-state institutions. Unlike the rest of education appropriations, in most states, financial aid to public institutions has increased over time. 3 Changing Trends in State Financial Aid. See the Issue Brief on VIEW ALL FOOTNOTES Since , state public financial aid in has per FTE and has gone from to of all education appropriations. i State aid as a percent of education appropriations State aid as a percent of education appropriations measures allocations to state scholarships or other state financial aid for students attending public in-state institutions, as a proportion of total state and local support available for public higher education operating expenses. VIEW ALL DATA DEFINITIONS
State Financial Aid for Students Attending Public Institutions
Note: Data for these metrics is not available prior to 2001.
Net Tuition Revenue
How Has the Student Share Changed Over Time?
Over time, the student share (the proportion of total education revenues at public institutions coming from net tuition revenue) has increased in every state. i Student share The student share is a measure of the proportion of total education revenues at public institutions coming from net tuition revenue. VIEW ALL DATA DEFINITIONS Student share generally rises during economic recessions and levels off during economic recoveries. The sharpest increase in student share occurred during and immediately following the Great Recession. In over half of all states, tuition revenue comprises more than 50% of total revenues. had student share in .
Per-Student Tuition Revenue Over Time
Net tuition revenue measures tuition and fees at public institutions from in-state and out-of-state students, excluding state and institutional financial aid. i Net tuition revenue Net tuition revenue is the total amount of tuition and fees, minus state and institutional financial aid and medical tuition and fees. Net tuition is affected by changes in tuition rates as well as proportional differences in out-of-state, international, and graduate student enrollment. VIEW ALL DATA DEFINITIONS In , had in net tuition revenue per FTE, approximately the U.S. average.
Unlike education appropriations, net tuition has increased steadily over time and there has been a substantial shift of responsibility for financing public higher education toward net tuition revenue. has seen an average annual since .
Total Education Revenue
Total education revenue combines the two primary sources of funding for public higher education—education appropriations and net tuition revenue. i Total education revenues Total education revenues refer to the sum of education appropriations and net tuition, excluding net tuition revenue used for capital debt service. VIEW ALL DATA DEFINITIONS Nationally, total education revenue per FTE is at an all-time high (thanks entirely to increases in net tuition revenue). In , public institutions in had, on average, in total revenue per FTE, approximately the national average. Total education revenue per FTE in has since .