State Fiscal Crises and Cuts in Higher Education: The Implications for ...

State Fiscal Crises and Cuts in Higher Education:

The Implications for Access, Institutional Performance, and Strategic

Reengineering

A Project for the Western Interstate Commission for Higher Education

Gabriel E. Kaplan University of Colorado Graduate School of Public Affairs

September 2006

Supported by a grant from the Ford Foundation

State Fiscal Crises and Cuts in Higher Education:

The Implications for Access, Institutional Performance, and Strategic

Reengineering

A Project for the Western Interstate Commission for Higher Education

Gabriel E. Kaplan University of Colorado Graduate School of Public Affairs

September 2006

Supported by a grant from the Ford Foundation

The Western Interstate Commission for Higher Education (WICHE) is an interstate compact created by formal legislative action of the states and the U.S. Congress. Its mission is to work collaboratively to expand educational access and excellence for all citizens of the West. Member states are:

Alaska Arizona California Colorado Hawaii

Idaho Montana Nevada New Mexico North Dakota

Oregon South Dakota Utah Washington Wyoming

WICHE's broad objectives are to: ? Strengthen educational opportunities for students through expanded access to programs. ? Assist policymakers in dealing with higher education and human resource issues through

research and analysis. ? Foster cooperative planning, especially that which targets the sharing of resources.

This publication was prepared by the Policy Analysis and Research unit, which is involved in the research, analysis, and reporting of information on public policy issues of concern in the WICHE states.

This report is available free of charge online at .

For additional inquiries, please contact the Policy Analysis and Research unit at (303) 541-0254 or ebarber@ wiche.edu.

Copyright ? September 2006 by the Western Interstate Commission for Higher Education

P.O. Box 9752 Boulder, Colorado 80301-9752

Telephone: (303) 541-0200 An Affirmative Action/Equal Opportunity Employer

Printed in the United States of America Publication Number 2A359

List of Tables and Figures...................................................................................................... i Acknowledgements............................................................................................................. iii Executive Summary.............................................................................................................iv Introduction........................................................................................................................ 1 Background......................................................................................................................... 3 Results................................................................................................................................. 4 Generalized Observations.................................................................................................. 11 The Concern for Access...................................................................................................... 26 Policy Recommendations................................................................................................... 38 Conclusions....................................................................................................................... 41 Author Biography.............................................................................................................. 42 Endnotes............................................................................................................................ 43

Table of Contents

List of Tables Table 1. States studied in this report.................................................................................... 4 Table 2. State by state higher education funding (general fund appropriations).................... 5 Table 3. Percent declines in state higher ed funding, year over year...................................... 5 Table 4. Index of 2004 funding relative to prior fiscal year funding...................................... 5 Table 5. Colorado................................................................................................................ 7 Table 6. Massachusetts......................................................................................................... 7 Table 7. Missouri................................................................................................................. 8 Table 8. Virginia.................................................................................................................. 9 Table 9. Oregon................................................................................................................. 10 Table 10. Nebraska............................................................................................................ 10 Table 11. Washington........................................................................................................ 10 Table 12. Wisconsin........................................................................................................... 11 Table 13. Incidence of revenue-oriented institutional strategies.......................................... 13 Table 14. Tuition levels by institution, 2000-2004............................................................. 14 Table 15. Institutional incidence of overall budget cutting approaches............................... 18 Table 16. Institutional incidence of particular budget cutting policies................................ 21 Table 17. Institutional incidence of access-related issues..................................................... 24 Table 18. State financial aid allocation............................................................................... 29

List of Figures

Figure 1. Higher ed funding relative to 2000....................................................................... 6

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