Scholarship News

States Post Historic Declines in Higher Ed Funding


January 19, 2010
by Scholarships.com Staff
It’s no secret that the last couple years have been hard for higher education.  The recession took a toll on colleges and students from a number of directions, and now a new study is analyzing the impact of state budget woes on public colleges and universities. The figures released this week in Grapevine, a publication focusing on state higher education support, show a continued decline in state funding for higher education and an accompany analysis suggests the funding cuts could have serious negative consequences for students at state colleges.

It’s no secret that the last couple years have been hard for higher education. The recession took a toll on colleges and students from a number of directions, and now a new study is analyzing the impact of state budget woes on public colleges and universities. The figures released this week in Grapevine, a publication focusing on state higher education support, show a continued decline in state funding for higher education and an accompany analysis suggests the funding cuts could have serious negative consequences for students at state colleges.

ADVERTISEMENT

Overall, state higher education funding has declined 1.1 percent in 2009-2010, following a 1.7 percent decline in 2008-2009, down to $79.4 billion from a high of $80.7 billion in 2008. The declines represent a sharp reverse from the previous three years, which saw a 24 percent increase in state support for higher education. Without federal stimulus funding, a substantial part of which went to higher education, budget cuts would have been even more severe, with a 6.8 percent decline in funding over the course of two years.

Despite the stimulus, some states still made substantial cuts to higher education. While higher education funding reductions in California, Michigan, and Illinois have received the most press, these states were not alone in substantially reducing money spent on colleges. Even after the stimulus, 11 states still posted a decline of more than 5 percent in higher education funding in the last year, with Vermont seeing the steepest drop at 16.4 percent. Overall, 28 states experienced declines in funding after the stimulus, with 37 states reducing funding before stimulus dollars are factored in. Nine states also have shown a reduction in education spending that's severe or sustained enough to register as a decline over the last 5 years.

Other states have managed to increase higher education funding, however. Montana and North Dakota boasted the highest increases at 23.3 and 18.5 percent respectively, with revenue from energy helping to spare them from the dire budget situations most other states faced this year. Similarly, Texas increased education funding by 12.5 percent, even with a much larger population and overall budget.  North Dakota also registered the highest 5-year increase in education spending at 49.3%.

States’ higher education funding choices can have long-term consequences. A report issued last year by the State Higher Education Executive Officers (who also co-sponsored this study) shows that state cuts to higher education made during recessions tend to become permanent. So, while state university systems have more or less managed to weather this year’s cuts, they may not do so well in the future as a lack of adequate funding persists. The study published this week underscores this risk, giving three reasons the current budget trends could potentially reach what the authors term “crisis proportions.”

First, more than 5 percent of the current year’s state appropriations are from stimulus funds, which are exhausted after this year. Second, state revenues have fallen at an unprecedented rate and states are unlikely to quickly make up the difference in the coming years. Finally, the analysis casts doubt on whether schools are able to fully meet student demand, with enrollment caps, course cancellations, and higher tuition all serving as budget-driven barriers to enrollment. In short, state colleges may already be in danger of failing at their mission of educating their state’s students, and the situation is likely to only get worse in the coming years.

While these statistics are a bit dry and may at first seem like primarily a cause for concern among college administrators, they can have a direct effect on your college experience. If you choose to enroll at a state university, the state’s higher education spending has a direct impact on your tuition, your financial aid, and the quality of your college experience. Continued state budget troubles may make currently attractive universities less of a bargain, while increased state spending might help schools in out-of-the-way places like North Dakota flourish and provide better service to their students.

Get instantly matched to scholarships that meet your skillset, strengths and unique talents. Our search algorithms match you to scholarships that fit your profile. Access a complete list of college scholarships now by conducting a free college scholarship search at Scholarships.com.

ADVERTISEMENT

Discuss

Share your thoughts and perhaps thousands of students will benefit from your unique insight on the subject!



If you can read this, don't touch the following fields


 
ADVERTISEMENT
ADVERTISEMENT
College is just around the corner, but you still have plenty of time to win scholarships for high school seniors. Now is the best time to start applying because it is your last chance to qualify for awards available only to high school students. Scholarships are one of the best ways to pay for college because you don’t have to pay them back.

Top Scholarships for High School Seniors Graduating 2023

August 17, 2022
by Ashley Eneriz
College is just around the corner, but you still have plenty of time to win scholarships for high school seniors. Now is the best time to start applying because it is your last chance to qualify for
College is a big commitment and burnout is easy if you don’t pace yourself. That said, taking a semester off is a normal thing to do while pursuing your degree. Whether you need a quick break for personal reasons or exciting opportunities, like a once-in-a-lifetime trip or work experience, here’s what you need to know about your scholarship money before taking time off.

Will Taking a Semester Off Hurt My Scholarship Money?

August 5, 2022
by Ashley Eneriz
College is a big commitment and burnout is easy if you don’t pace yourself. That said, taking a semester off is a normal thing to do while pursuing your degree. Whether you need a quick break for
The Free Application for Federal Student Aid — more commonly known as FAFSA is the key to funding your college education. Not only can the FAFSA connect you to grants, scholarships, and work-study opportunities, but filling out the form is 
also the first step to applying for federal student loans. Even though filling out the FAFSA is simple and straightforward, several misconceptions still fly around it. Here are the top FAFSA myths you need to stop believing.

FAFSA Myths You Need to Stop Falling For

July 26, 2022
by Ashley Eneriz
The Free Application for Federal Student Aid — more commonly known as FAFSA is the key to funding your college education. Not only can the FAFSA connect you to grants, scholarships, and work-study
The new semester is just around the corner, which means it is time to start thinking about how you are going to afford the new school session. Student loans can be taken out any time of the year and are useful for paying for textbooks, special classes or summer terms and additional living expenses. Choosing the right student loan can help you reach your education and career goals while still keeping your finances balanced. Here’s what to look for before you take out a student loan this summer.

Which Student Loan Is Best for Me?

June 13, 2022
by Ashley Eneriz
The new semester is just around the corner, which means it is time to start thinking about how you are going to afford the new school session. Student loans can be taken out any time of the year and
As we celebrate Asian Pacific American Heritage Month, we reflect on the enormous contributions of Asian Americans and share their culturally rich history. Asian Americans and Pacific Islanders make up the fastest-growing racial group in the United States, with more than 23 million it total. However, API individuals, communities, and businesses have been disproportionately impacted by discrimination and criminal acts that have only been exacerbated by the pandemic in recent years. Now more than ever, we need to stand united as Americans against anti-Asian racism.

Asian Pacific American Heritage Month 2022 Scholarships

May 25, 2022
by Liz Montenegro
As we celebrate Asian Pacific American Heritage Month, we reflect on the enormous contributions of Asian Americans and share their culturally rich history. Asian Americans and Pacific Islanders make
The   Voyager Scholarship was implemented by the Obamas in partnership with Brian Chesky, Co-founder and CEO of Airbnb, who donated $100 million to this program. The mission of this scholarship is to help students pursue careers in public service and solve some of our world’s greatest challenges. The Voyager Scholarship provides students access to education and travel opportunities to help expand their horizons and bring about significant change. During this scholarship’s first year, and it is estimated that 100 college juniors will receive up to $50,000 to cover tution and educational expenses, plus up to $30,000 in international travel stipends and credits. Recipients have the option to renew as seniors.

The Obama-Chesky Voyager Scholarship for Public Service

May 18, 2022
by Liz Montenegro
The Voyager Scholarship was implemented by the Obamas in partnership with Brian Chesky, Co-founder and CEO of Airbnb, who donated $100 million to this program. The mission of this scholarship is to
Summer is a great time to experience new things outside of the hectic school year routine. For students who want to beef up their resume, make some money, and have a little fun along the way, working a summer job is a great option! A part-time job gives you the unique opportunity to gain real-world experience and begin forging your own career path. You’ll also get the chance to become a better communicator by working with a wide range of customers and co-workers from all walks of life. Explore which types of work environments you might enjoy with these top 4 summer jobs (and related scholarships)!

Top 4 Summer Jobs For High School Students

May 13, 2022
by Liz Montenegro
Summer is a great time to experience new things outside of the hectic school year routine. For students who want to beef up their resume, make some money, and have a little fun along the way, working
Applications are currently open for the Pacific Gas & Electric (PG&E) Corporation Foundation’s  Better Together STEM Scholarship! Ranging from $2,500 to $10,000, the program is available to students who are pursuing STEM-related careers at universities in California and Historically Black Colleges and Universities (HBCUs) in the U.S. Eligible applicants include graduating high school seniors, college students, veterans, nontraditional students, and adults returning to school and plan to enroll in a full-time undergraduate program at an accredited four-year college or university. Don’t delay, applications close on June 3, 2022 at 3:00 PM CT.

PG&E Better Together STEM Scholarship

May 11, 2022
by Liz Montenegro
Applications are currently open for the Pacific Gas & Electric (PG&E) Corporation Foundation’s Better Together STEM Scholarship! Ranging from $2,500 to $10,000, the program is available to students