Current Higher Education Funding Structure and State ...
[Pages:17]Current Higher Education Funding Structure and State Funding Cycles
What fiscal priorities are needed for funding the eventual System Design Plan?
1
Research institutions receive large amounts of their funding through grants and contracts, while comprehensives receive a comparatively high amount from operating revenue and community and technical colleges receive the majority through state funds.
2009-11 Funding by Source
Dollars in Millions
% of Total
2
Research institutions spend nearly half of their budget on research. Both comprehensives and community and technical colleges spend nearly half of their budget on instruction.
2007-09 All Funds Expenditures
Dollars in Millions
% of Total
3
Expenditure patterns with state and tuition funds are similar between sectors.
2007-09 State and Tuition Funded Expenditures
Dollars in Millions
% of Total
4
State Funding Cycles
? Higher education funding is cyclical. When a revenue problem develops due to recession, state support declines.
? Tuition increases have continually shifted cost to students, state revenue shortfalls accelerate this process.
Note: All data presented is based on budgeted FTE and not actual FTE which may be substantially higher.
5
Funds used primarily for instruction ? state funding and tuition revenue ? have been stable over time. The funding level at baccalaureates is higher than community and technical colleges.
6 Source: LEAP data except as noted.
Declining state funds have been replaced with tuition revenue at research institutions.
7 Source: LEAP data except as noted.
State funds have also been replaced with tuition at comprehensive institutions.
8 Source: LEAP data except as noted.
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