Higher Education Funding and State Government

1
Higher Education Funding and State Government

• Presented to PADM 6800 State Government (Dr. Paul
  Harris)
• Spring 2007
• By Braden J. Hosch, Ph.D.

2
Overview

• Population Change and Pressures on State Funding
• State Spending on Higher Education The National
  Picture
• State Spending on Higher Education A Case Study
  of South Carolina

3
Population Change

• US Population By Age and Sex, 1900

Male
Female
Source U.S. Census Bureau - http//www.census.gov
/ipc/www/idbpyr.html
4
Population Change

• US Population By Age and Sex, 1950

Male
Female
Source U.S. Census Bureau - http//www.census.gov
/ipc/www/idbpyr.html
5
Population Change

• US Population By Age and Sex, 2000

Male
Female
Source U.S. Census Bureau - http//www.census.gov
/ipc/www/idbpyr.html
6
Population Change

• US Population By Age and Sex, 2010

Male
Female
Source U.S. Census Bureau - http//www.census.gov
/ipc/www/idbpyr.html
7
Population Change

• US Population By Age and Sex, 2020

Male
Female
Source U.S. Census Bureau - http//www.census.gov
/ipc/www/idbpyr.html
8
Population Change

• US Population By Age and Sex, 2030

Male
Female
Source U.S. Census Bureau - http//www.census.gov
/ipc/www/idbpyr.html
9
Population Change

• US Population By Age and Sex, 2040

Male
Female
Source U.S. Census Bureau - http//www.census.gov
/ipc/www/idbpyr.html
10
Population Change

• US Population By Age and Sex, 2050

Male
Female
AnimatedLink
Source U.S. Census Bureau - http//www.census.gov
/ipc/www/idbpyr.html
11
Implications of Population Change

• Shift in budget priorities from education to
  health care

• Shift in mission of higher education to provide
  continuing education throughout the lifespan

Source U.S. Census Bureau - http//www.census.go
v/ipc/www/idbpyr.html
12
Enrollment Growth and Appropriations
In constant 2006 dollars, adjusted by Higher
Education Cost Adjustment (HECA)
Source State Higher Education Finance FY 2006
(SHEEO, 2007)
13
Total Educational Revenue Per FTE
In constant 2006 dollars, adjusted by Higher
Education Cost Adjustment (HECA)
Source State Higher Education Finance FY 2006
(SHEEO, 2007)
14
Net Tuition as a of Public Higher Education
Total Educational Revenue
Source State Higher Education Finance FY 2006
(SHEEO, 2007)
15
Higher Education Appropriations in Southern States
Source Notes 1. Higher Education Support State
and local tax and nontax support for public and
independent higher education. Includes special
purpose appropriations for research-agricultural-m
edical. Source SHEEO SHEF 2. Population and
personal income data from U.S. Census Bureau and
Bureau of Economic Analysis. 3. State and local
tax revenues data from U.S. Census Bureau
lottery profits data from North American
Association of State and Provincial Lotteries.
Source State Higher Education Finance FY 2006
(SHEEO, 2007)
16
South Carolina Higher Education Appropriations
2000-01 to 2006-07
Source South Carolina Budget and Control Board,
Historical Analysis, http//www.budget.sc.gov/webf
iles/oo/historical/histana-web.pdf
17
South Carolina Tuition State Appropriations,
1999-2005
Source SC CHE. Chart excludes MUSC. State
Appropriations Per FTE calculated using Fall FTE
dollars are not adjusted for inflation.
18
Undergraduate Tuition in Southern States
Source Southern Regional Education Board
http//www.sreb.org/main/EdData/reports/DEHighligh
ts06.pdf
19
State Funding Per FTE Student in Southern States
Source Southern Regional Education Board
http//www.sreb.org/main/EdData/reports/DEHighligh
ts06.pdf
20
Tuition Revenue Per FTE Student in Southern States
Source Southern Regional Education Board
http//www.sreb.org/main/EdData/reports/DEHighligh
ts06.pdf
21
Operating Expenditures Per FTE

• Operating expenditures per FTE student have
  increased for comprehensive universities on
  average by just 0.5 annually between 1999 and
  2003 in unadjusted dollars.

Source IPEDS Peer Analysis System. National
Center for Education Statistics. Fall FTE from
CHEMIS is used for the per FTE calculation.
22
Instruction Academic Support

• Expenditures for Instruction and Academic Support
  per FTE have increased at an annual rate of less
  than 2.75 for universities in the comprehensive
  teaching sector.

Source IPEDS Peer Analysis System. National
Center for Education Statistics. Fall FTE from
CHEMIS is used for the per FTE calculation.
23
Graduation Rates in South Carolina

• Six-year graduation rates from SC comprehensive
  universities are among the highest in the region
  compared to similar institutions.

Source IPEDS Peer Analysis System. National
Center for Education Statistics. Statistics are
unweighted.
24
Degrees Conferred in Southern States
Source Southern Regional Education Board
http//www.sreb.org/main/EdData/reports/DEHighligh
ts06.pdf
25
Degrees Conferred Nationally Per State Resident
(1-25)
Source The Chronicle of Higher Education Almanac
Issue 2006-07 53.1, August 25, 2006. Population
Data are from the U.S. Census Bureau
http//www.census.gov/popest/states/tables/NST-EST
2006-01.xls
26
Degrees Conferred Nationally Per State Resident
(26-51)
Source The Chronicle of Higher Education Almanac
Issue 2006-07 53.1, August 25, 2006. Population
Data are from the U.S. Census Bureau
http//www.census.gov/popest/states/tables/NST-EST
2006-01.xls