Higher Education Funding
and State Government
Presented to PADM 6800 State Government (Dr. Paul Harris)
Spring 2007
By Braden J. Hosch, Ph.D.
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
Population Change
US Population By Age and Sex, 1900
Male
Female
Source: U.S. Census Bureau - http://www.census.gov/ipc/www/idbpyr.html
Population Change
US Population By Age and Sex, 1950
Male
Female
Source: U.S. Census Bureau - http://www.census.gov/ipc/www/idbpyr.html
Population Change
US Population By Age and Sex, 2000
Male
Female
Source: U.S. Census Bureau - http://www.census.gov/ipc/www/idbpyr.html
Population Change
US Population By Age and Sex, 2010
Male
Female
Source: U.S. Census Bureau - http://www.census.gov/ipc/www/idbpyr.html
Population Change
US Population By Age and Sex, 2020
Male
Female
Source: U.S. Census Bureau - http://www.census.gov/ipc/www/idbpyr.html
Population Change
US Population By Age and Sex, 2030
Male
Female
Source: U.S. Census Bureau - http://www.census.gov/ipc/www/idbpyr.html
Population Change
US Population By Age and Sex, 2040
Male
Female
Source: U.S. Census Bureau - http://www.census.gov/ipc/www/idbpyr.html
Population Change
US Population By Age and Sex, 2050
Male
Female
Animated
Link
Source: U.S. Census Bureau - http://www.census.gov/ipc/www/idbpyr.html
Implications of Population Change
 Shift in budget priorities from education to health care
Change in Number of Individuals from 2007*
Age Group
Δ 20-24
Δ 70+
2010
715,139
1,006,323
2020
-210,467
9,948,301
2030
2,174,964
24,407,889
2040
3,936,260
34,746,966
2050
5,335,960
39,196,494
 Shift in mission of higher education to provide
continuing education throughout the lifespan
*Source: U.S. Census Bureau - http://www.census.gov/ipc/www/idbpyr.html
Enrollment Growth and Appropriations
In constant 2006 dollars, adjusted by Higher Education Cost Adjustment (HECA)
Source: State Higher Education Finance FY 2006 (SHEEO, 2007)
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)
Net Tuition as a % of Public Higher
Education Total Educational Revenue
Source: State Higher Education Finance FY 2006 (SHEEO, 2007)
Higher Education Appropriations in
Southern States
Fiscal 2006
Fiscal 2005
Higher
Education
Support1
Per $1000
of Personal
Income
Higher
Education
Support1
Per Capita2
National
Index
Alabama
$306
1.18
$9.00
Florida
$193
0.74
Georgia
$280
Kentucky
Fiscal 2004
Tax Revenues and
Lottery Profits
(thousands)
Higher
Education
Support1
(thousands)
Allocation
to Higher
Education
1.27
$10,535,366
$1,167,957
11.1%
$4.98
0.70
$54,839,454
$2,710,961
4.9%
1.08
$8.66
1.22
$26,437,450
$2,343,447
8.9%
$287
1.10
$9.18
1.30
$11,653,974
$1,108,688
9.5%
Louisiana
$300
1.15
$11.58
1.64
$13,186,630
$1,245,308
9.4%
Maryland
$272
1.04
$6.03
0.85
$22,789,497
$1,355,356
5.9%
North Carolina
$365
1.40
$10.90
1.54
$25,012,464
$2,607,049
10.4%
South Carolina
Tennessee
$237
$216
0.91
0.83
$7.84
$7.05
1.11
1.00
$11,466,706
$15,070,338
$781,729
$1,088,681
6.8%
7.2%
Virginia
$210
0.81
$5.26
0.74
$25,410,405
$1,358,445
5.3%
West Virginia
$229
0.88
$9.02
1.27
$5,479,645
$406,574
7.4%
U.S.
$260
1.00
$7.08
1.00
$1,020,012,078
$69,686,411
6.8%
State
National
Index
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-medical. 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)
South Carolina Higher Education
Appropriations 2000-01 to 2006-07
Source: South Carolina Budget and Control Board, Historical Analysis,
http://www.budget.sc.gov/webfiles/oo/historical/histana-web.pdf
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.
Undergraduate Tuition in Southern
States
Source: Southern Regional Education Board
http://www.sreb.org/main/EdData/reports/DEHighlights06.pdf
State Funding Per FTE Student in
Southern States
Source: Southern Regional Education Board
http://www.sreb.org/main/EdData/reports/DEHighlights06.pdf
Tuition Revenue Per FTE Student in
Southern States
Source: Southern Regional Education Board
http://www.sreb.org/main/EdData/reports/DEHighlights06.pdf
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.
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.
2003-04
Instr & Ac
Supp.
Four Year
% Change
The Citadel
$7,254
15%
Coastal Carolina Univ.
$5,226
0%
College of Charleston
$5,900
17%
Francis Marion Univ.
$5,798
2%
Lander University
$5,330
4%
South Carolina State Univ.
$7,972
10%
U.S.C. - Aiken
$5,821
10%
U.S.C. - Beaufort
$6,804
45%
U.S.C. - Upstate
$5,245
2%
Winthrop University
$5,830
5%
Teaching Sector Total
$6,118
11%
Teaching Sector
Institution
Source: IPEDS Peer Analysis System. National Center for Education Statistics. Fall FTE from CHEMIS is used for the per FTE
calculation.
Graduation Rates in South Carolina
 Six-year graduation rates from SC comprehensive universities
are among the highest in the region compared to similar
institutions.
Teaching Sector
Institution
2004 6-Year
Grad Rate
The Citadel
66%
Coastal Carolina Univ.
40%
College of Charleston
57%
Francis Marion Univ.
41%
Lander University
42%
SC State Univ.
53%
U.S.C. - Aiken
41%
U.S.C. - Upstate
41%
Winthrop University
57%
Sector Total (SC)
49%
Research Sector (SC)
68%
Source: IPEDS Peer Analysis System. National Center for Education Statistics. Statistics are unweighted.
Degrees Conferred in Southern States
Source: Southern Regional Education Board
http://www.sreb.org/main/EdData/reports/DEHighlights06.pdf
Degrees Conferred Nationally Per
State Resident (#1-25)
Proportion of
Enrolled Students
Who Received
Degrees in 2003-04
Degrees
Awarded
Per 1,000
State Residents
2003-04
Rank State
Proportion of
Enrolled Students
Who Received
Degrees in 2003-04
Degrees
Awarded
Per 1,000
State Residents
2003-04
Rank
State
#1
Dist. of Columbia
21.1%
36.6
#14 Kansas
20.1%
8.5
#2
Massachusetts
22.9%
12.4
#15 Minnesota
17.8%
8.2
#3
Rhode Island
18.9%
11.2
#16 Arizona
16.6%
8.1
#4
Utah
15.9%
10.6
#17 Indiana
17.9%
8.1
#5
Vermont
19.8%
10.4
#18 South Dakota
14.4%
8.1
#6
North Dakota
16.4%
10.1
#19 Michigan
19.6%
7.9
#7
New York
21.8%
9.5
#20 Colorado
17.3%
7.9
#8
Missouri
19.9%
9.5
#21 Illinois
23.0%
7.8
#9
Nebraska
20.4%
9.4
#22 Wisconsin
19.8%
7.8
#10
Delaware
20.9%
9.2
#23 Connecticut
21.4%
7.7
#11
Iowa
19.5%
8.9
#24 Montana
17.5%
7.3
#12
Pennsylvania
20.7%
8.8
--
US
19.5%
7.2
#13
New Hampshire
20.1%
8.6
#25 Maryland
20.6%
7.1
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-EST2006-01.xls
Degrees Conferred Nationally Per
State Resident (#26-51)
Proportion of
Enrolled Students
Who Received
Degrees in 2003-04
Degrees
Awarded
Per 1,000
State Residents
2003-04
Rank
State
Proportion of
Enrolled Students
Who Received
Degrees in 2003-04
Degrees
Awarded
Per 1,000
State Residents
2003-04
Rank
State
#26
Alabama
18.1%
7.1
#39
Maine
15.1%
6.0
#27
Ohio
19.5%
7.0
#40
California
22.2%
5.9
#28
Oklahoma
17.7%
7.0
#41
SouthCarolina
18.7%
5.8
#29
Virginia
19.2%
7.0
#42
New Mexico
16.0%
5.7
#30
West Virginia
15.7%
6.9
#43
Mississippi
19.8%
5.6
#31
Oregon
21.0%
6.8
#44
Texas
19.3%
5.6
#32
Louisiana
15.7%
6.7
#45
Florida
16.6%
5.5
#33
North Carolina
19.7%
6.3
#46
Idaho
11.7%
5.4
#34
Hawaii
19.1%
6.2
#47
New Jersey
20.0%
5.3
#35
Georgia
18.5%
6.2
#48
Arkansas
15.3%
5.2
#36
Washington
24.3%
6.1
#49
Wyoming
17.1%
4.5
#37
Tennessee
18.5%
6.1
#50
Nevada
8.3%
3.2
#38
Kentucky
16.5%
6.1
#51
Alaska
6.8%
3.1
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-EST2006-01.xls