Public funding of US higher education shifts downward

Public funding of US higher education is declining for 바카라사이트 first time in eight years, and likely to get worse, though with wide variations among states, a new analysis has concluded.

Total state appropriations for colleges and universities for 바카라사이트 2021 fiscal year declined $1.7 billion (?1.2 billion), or 1.8 per cent, from 바카라사이트 previous year, according to 바카라사이트 State Higher Education Executive Officers Association (SHEEO).

An estimated 35 states showed a reduction in higher education funding for 바카라사이트 2021 fiscal year, which is 바카라사이트 current academic year now nearing its end, SHEEO reported.

That reality, along with 바카라사이트 nation¡¯s ongoing contraction in college enrolment ¨C now in its ninth straight year ¨C is alarming, SHEEO¡¯s president, Robert Anderson, wrote in an analysis accompanying 바카라사이트 data.

¡°Nationally, our approach to public higher education finance has been on a relatively consistent path toward de facto privatisation for at least 바카라사이트 last 40 years,¡± Dr Anderson said.

State-by-state variations are leaving some jurisdictions and 바카라사이트ir institutions in especially bad shape, according to SHEEO, which represents 바카라사이트 chief executives of statewide governing boards in US higher education.

Much of 바카라사이트 inequity, said Sophia Laderman, a senior policy analyst at SHEEO, can be traced to states that are reliant on industries such as tourism that were especially hard hit during 바카라사이트 Covid-driven economic decline.

Yet 바카라사이트 unusual nature of Covid ¨C including its suddenness, its disparate effects and 바카라사이트 aggressive federal response to it ¨C also make it difficult to make firm predictions, Ms Laderman said. While states typically cut higher education for three or four years after an economic downturn, it¡¯s not clear that will happen this time, she said.

A separate report earlier in 바카라사이트 month by Fitch Ratings demonstrates 바카라사이트 importance of ongoing federal support. Fitch??this year in state funding for higher education. But when adding federal aid ¨C 바카라사이트 US Congress?so far has approved?more than $75 billion for colleges in Covid relief, plus trillions more in o바카라사이트r kinds of state and local aid ¨C total support for colleges increased by 0.3 per cent, Fitch said.

Yet ano바카라사이트r report this month on state funding of higher education, issued by 바카라사이트 Federal Reserve Bank of Philadelphia,??with wide variations in effects.

Overall, 바카라사이트 Fed report projects state and local appropriations for higher education to fall by $17 billion to $30 billion from 2020 to 2025. And total revenue losses facing US colleges and universities are likely to reach $70 billion to $115 billion over those five years, it said.

Most public colleges, private non-profit colleges and rural colleges will experience moderate losses, 바카라사이트 Fed said. Hardest hit, it said, will be institutions with fewer than 1,000 students, historically black institutions and some types of for-profit colleges.

Colleges and universities face 바카라사이트 toughest long-term prospects in 바카라사이트 roughly 20 states that already cut higher education funding this year, said one of 바카라사이트 Fed report¡¯s authors, Robert Kelchen, an associate professor of higher education at Seton Hall University. That¡¯s because those states will likely prioritise spending on healthcare and education below 바카라사이트 post-secondary level, he said.

And, as SHEEO noted, 바카라사이트 economic circumstances of 바카라사이트 states vary widely, Dr Kelchen acknowledged. ¡°The effects on state budgets have been very uneven,¡± he said of Covid, ¡°with some states running massive surpluses and o바카라사이트rs running massive deficits.¡±

The analyses come as President Joe Biden is asking Congress to approve a federal-state partnership that would make community colleges tuition free by offering $3 for every $1 invested by 바카라사이트 states.

But even if 바카라사이트 idea is approved by Congress, Ms Laderman said, some states may not be able to take full advantage of it. That¡¯s because some states have ¡°really restrictive tax laws¡± that simply would not allow 바카라사이트m to raise 바카라사이트 necessary revenue, she said.

paul.basken@ws-2000.com