How State Budgets, Enrollment Growth and Inflation Affect the Bottom Line

1
Funding Public Colleges
How State Budgets, Enrollment Growth and
Inflation Affect the Bottom Line and Student
Costs Joseph L. Joe Marks Symposium on
Higher Education Finance Exploring Recent
State-Level Initiatives Charleston, West
Virginia November 9, 2004
1
2
Funding public colleges is one of the most
important challenges our states and the nation
face in the first half of the 21st century.
2
3
Demand for higher education is strong.
2
4
FTE Enrollment Increases 2001 to 2004 Public
Colleges and Universities
195,500 to 2.0 million
185,100 to 1.5 million
Source SREB-State Data Exchange.
3
5
Has public funding kept up?
4
6
Public funding for higher education
state and local appropriations

tuition and fees revenue
5
7
Allocation of Public Funding for
Higher-Education Related Operating Expenses, 2004
6
8
Public Funding Increases 2001 to 2004 Public
Four-Year Colleges and Universities
100.8 million
2.6 billion
2.7 billion
Source SREB-State Data Exchange.
7
9
Public Funding Increases 2001 to 2004 Public
Two-Year Colleges
565 million
1.0 billion
1.5 billion
Source SREB-State Data Exchange.
8
10
Changes in Funding Per-FTE 2001 to 2004 Public
Four-Year Colleges and Universities (not adjusted
for inflation)
-617 to 6,298
933 to 4,474
317 to 10,772
Source SREB-State Data Exchange.
9
11
Changes in Funding Per-FTE 2001 to 2004 Public
Two-Year Colleges (not adjusted for inflation)
-493 to 3,693
407 to 1,900
21 to 5,593
Source SREB-State Data Exchange.
10
12
Changes in Funding Per-FTE 2001 to 2004 Public
Four-Year Colleges and Universities (adjusted for
inflation)
-1,365 to 6,298
550 to 4,474
-815 to 10,772
Source SREB-State Data Exchange.
11
13
Changes in Funding Per-FTE 2001 to 2004 Public
Two-Year Colleges (adjusted for inflation)
-946 to 3,693
245 to 1,900
-582 to 5,593
Source SREB-State Data Exchange.
12
14
Public Funding Shift 2001 to 2004 Public
Four-Year Colleges and Universities
SREB States
State Appropriations
Tuition and Fee Revenue
13
15
Public Funding Shift 2001 to 2004 Public
Four-Year Colleges and Universities
South Carolina
State Appropriations
Tuition and Fee Revenue
14
16
Public Funding Shift 2001 to 2004 Public
Four-Year Colleges and Universities
Virginia
State Appropriations
Tuition and Fee Revenue
15
17
Public Funding Shift 2001 to 2004 Public Two-Year
Colleges
SREB States
State and Local Appropriations
Tuition and Fee Revenue
16
18
Public Funding Shift 2001 to 2004 Public Two-Year
Colleges
South Carolina
State and Local Appropriations
Tuition and Fee Revenue
17
19
Public Funding Shift 2001 to 2004 Public Two-Year
Colleges
Virginia
State and Local Appropriations
Tuition and Fee Revenue
18
20
What do these trends mean for students?
19
21
Changes in Annual Tuition/FeesPublic Four-Year
Colleges and Universities
3,660
Source SREB analysis of NCES, IPEDS data.
20
22
Changes in Annual Tuition/FeesPublic Two-Year
Colleges and Universities
2,087
,1,680
Source SREB analysis of NCES, IPEDS data.
21
23
Tuition and Fees at Public Four-Year Colleges as
Percentages of Median Household Incomes
9.7
9.8
Source SREB analysis of U.S. Bureau of Census
and NCES, IPEDS data.
22
24
Tuition and Fees at Public Two-Year Colleges as
Percentages of Median Household Incomes
4.9
4.5
Source SREB analysis of U.S. Bureau of Census
and NCES, IPEDS data.
23
25
Are these trends anything to worry about?
24
26
Annual Tuition and Fees as a Percent of Median
Household Income
White
Public Four-Year College or University, SREB
States (2004 Tuition / 2000 Incomes)
Black
Hispanic
Four-Year
Two-Year
Source SREB analysis of U.S. Bureau of Census
data.
25
27
Projected Increase in Adults 25 to 64 from 2000
to 2020
SREB States
Four-Year
Source NCHEMS analysis of U.S. Bureau of Census
data.
26
28
Percent of Adults 25 to 64 in 2000 with a
Bachelors Degree or Higher
SREB States
Source NCHEMS analysis of U.S. Bureau of Census
data.
27
29
Projected Change in Distribution of Adults 25 to
64 from 2000 to 2020
SREB States
Source NCHEMS analysis of U.S. Bureau of Census
data.
28
30
Are these trends anything to worry about?
29
31
Are these trends anything to worry about? If we
dont successfully attack the education
participation and attainment gaps, the latest
research shows that our economic progress will
come to a halt.
29
32
Income is Highly Related to Adults Having a
Bachelors
Source SREB analysis of U.S. Bureau of Census
and NCES data.
30
33
Income is Highly Related to Adults Having a
Bachelors
Source SREB analysis of U.S. Bureau of Census
and NCES data.
31
34
For further information contact
Joe.Marks_at_SREB.org 404-875-9211 www.SREB
.org
32