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  • Section 3: Public Research Universities Have Been Hit Harder than Public Higher Education in General - American Academy of Arts & Sciences
    Policy Fellowship in Global Security and International Affairs The Exploratory Fund Member Login User Name Password Forgot your password Home Public Research Universitie Section 3 Public Research Public Research Universities Changes in State Funding Section 3 Public Research Universities Have Been Hit Harder than Public Higher Education in General While public higher education in general has been hit by cuts in state support public research universities have been hit harder Between 2008 and 2013 inflation adjusted state appropriation support for public higher education per FTE student declined by 26 3 percent in the median public research university Of the 138 public research universities for which there was comparable data inflation adjusted support per FTE student declined by more than 20 percent at 98 institutions and declined by more than 40 percent at 29 institutions 10 To be sure tuition increases have abated recently in response to modest increases in state support in 2013 and 2014 Indeed states that have continued with deep cuts are now the outliers In Washington State the latest budget reportedly provides for tuition reductions of 15 20 percent at four year institutions making it the only state to provide widespread tuition cuts 11 Other states have experienced modest increases in state support but with corresponding tuition freezes For example the University of California recently agreed to freeze resident undergraduate tuition for two years in exchange for additional state support of 4 percent per year for two years California expects to raise nonresident tuition by 8 percent 12 Public research universities are increasingly reliant on tuition and fees in the wake of cuts in state appropriations Data shown represent public research universities that are members of the Association of American Universities Source COGR Costing Committee Finances of Research Universities June 2014 Version New York Washington D C

    Original URL path: https://www.amacad.org/content/publications/pubContent.aspx?d=21946 (2016-02-13)
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  • Major State Spending Items that Compete with Higher Education for Resources - American Academy of Arts & Sciences
    revenue in every year from 2017 through 2024 14 Primary and Secondary Education The 2007 recession was so severe that states cut inflation adjusted spending on K 12 education by approximately 4 percent between 2008 and 2013 15 The National Center on Education Statistics projects that the number of pupils will rise 0 6 percent annually from 2015 through 2024 16 Given the depth of recent state cuts in primary and secondary education and anticipated growth in the number of pupils states will face pressure to raise spending on primary and secondary education in coming years Pensions State and local government pensions for all workers not just higher education are underfunded by at least 1 1 trillion according to conservative estimates 17 While some states are trying to cut these benefits with varying degrees of success states are likely to have to pay the vast majority of this obligation In aggregate states and localities are underpaying actuarially determined contributions by approximately 21 billion annually and under some scenarios expenditure needs could be much higher still 18 This will place great pressure on state finances in many states crowding out funds that might otherwise be available for higher education Infrastructure While it is difficult to obtain objective measures of infrastructure needs it is clear that states and localities cut back on this spending very sharply during the Great Recession and in the years that followed Between the fourth quarter of 2007 and the fourth quarter of 2014 real gross investment in infrastructure by state and local governments fell by 18 percent and net investment after allowing for capital consumption plummeted more than 55 percent 19 States feel great pressure to increase spending for infrastructure In fact it is one of the few activities for which the public appears willing to pay

    Original URL path: https://www.amacad.org/content/publications/pubContent.aspx?d=22101 (2016-02-13)
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  • Section 4: Looking Forward: Prospects for the Future - American Academy of Arts & Sciences
    State Funding Section 4 Looking Forward Prospects for the Future States potential to provide support for higher education depends crucially on tax revenue Unfortunately state tax revenue has remained weak seven years after the start of the recession inflation adjusted state government tax revenue is only 5 percent above its prerecession level By contrast in four preceding economic recoveries state tax revenue had grown from 15 to 25 percent above prerecession revenue in the same amount of time 21 The outlook for tax revenue growth is subdued Most major economic forecasters expect that the national economy will continue to improve throughout 2015 and 2016 inflation will be low but will gradually rise and interest rates will rise slightly 22 State taxes are more volatile than the economy and more volatile than they used to be Note Years are twelve month periods ending in June corresponding to the fiscal year of the typical state budgetary office Source Analysis of data from the United States Census Bureau http www census gov and U S Department of Commerce Bureau of Economic Analysis http www bea gov State income taxes and sales taxes accounted for 35 9 percent and 31 3 percent respectively of state tax revenue in fiscal year 2014 Income taxes are unlikely to grow much faster than the overall economy over the next several years progressive tax structures will drive growth up slightly but this will likely be offset by drag from slow growth in nonwage income Sales taxes have grown more slowly than the economy for more than forty years 23 This is a result of the difficulty in taxing the service industry and in collecting taxes on Internet sales among other causes The sales tax is likely to continue to grow more slowly than the economy for years to

    Original URL path: https://www.amacad.org/content/publications/pubContent.aspx?d=21947 (2016-02-13)
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  • Conclusion - American Academy of Arts & Sciences
    Policy Fellowship in the Humanities Education and the Arts Policy Fellowship in Global Security and International Affairs The Exploratory Fund Member Login User Name Password Forgot your password Home Public Research Universitie Conclusion Public Research Universities Changes in State Funding Conclusion Tax revenue although growing is growing slowly States face increases in spending areas that are difficult or impossible to cut particularly Medicaid and pension contributions They also face demands for spending on primary and secondary education a popular priority that does not have its own revenue source like tuition and might more easily garner legislative support In addition states have made sharp cuts in infrastructure spending and face considerable demand to restore some of that spending allowing repairs of roads and bridges and improvements in other areas Thus higher education despite its importance to the economy is continuing to fall behind these other priorities Most universities have instituted new programs to reduce costs but years of dramatic budget cuts have left little room for austerity public research universities increasingly are expected to serve more Americans with less funding In response to this need the Lincoln Project is developing new strategies for ensuring that public research universities continue to serve

    Original URL path: https://www.amacad.org/content/publications/pubContent.aspx?d=21948 (2016-02-13)
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  • Appendix: State Spending on Public Higher Education per Full-Time Equivalent Student Varies by More than Sixfold - American Academy of Arts & Sciences
    for public higher education rely relatively little on net tuition New Hampshire and Vermont which provide relatively little state support for public higher education rely heavily on net tuition revenue States vary in their reliance on appropriations and net tuition Source State Higher Education Executive Officers SHEEO Association SHEF FY 2014 State Higher Education Finance Boulder Colo State Higher Education Executive Officers Association 2015 The relationship between education appropriations and net tuition also reflects state philosophies and policies about who should pay the costs of higher education For example New Mexico which has a relatively high appropriation share has a policy of keeping tuition low to allow a large number of students to participate Vermont by contrast prefers to keep tuition higher for those who can afford college and provides significant financial assistance for those who cannot 25 How have changes in state support affected individual public university systems and how have these institutions responded California Prior to 2010 11 state funding was the largest single source of support for the education function of the University Over the past ten years state educational appropriations have fallen more than 1 billion in inflation adjusted dollars despite UC s enrollment growth State educational appropriations constituted only 9 percent of UC s operating budget in 2012 13 compared to 23 percent in 2001 02 26 Colorado Colorado State this year 2011 received 94 million in funding from the State of Colorado a reduction of about 36 million over the past three years Colorado State has managed these state funding cuts by freezing hiring and salaries reducing expenses with an emphasis on cuts to administration and increasing student tuition 27 New York In New York the percent change in state educational appropriations per FTE student from 2008 to 2014 is 11 1 percent a

    Original URL path: https://www.amacad.org/content/publications/pubContent.aspx?d=21952 (2016-02-13)
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  • Resources - American Academy of Arts & Sciences
    Journal of the Academy Bulletin Magazine of the Academy Books Research Papers Monographs and Project Publications Meetings Overview Induction 2015 Upcoming Meetings and Events Friday Forum 2015 2016 Schedule Past Meetings and Events Fellowships Overview Visiting Scholars Program Hellman Fellowship in Science and Technology Policy Policy Fellowship in the Humanities Education and the Arts Policy Fellowship in Global Security and International Affairs The Exploratory Fund Member Login User Name Password

    Original URL path: https://www.amacad.org/content/publications/pubContent.aspx?d=21971 (2016-02-13)
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  • Public Research Universities: Why They Matter - American Academy of Arts & Sciences
    Induction 2015 Upcoming Meetings and Events Friday Forum 2015 2016 Schedule Past Meetings and Events Fellowships Overview Visiting Scholars Program Hellman Fellowship in Science and Technology Policy Policy Fellowship in the Humanities Education and the Arts Policy Fellowship in Global Security and International Affairs The Exploratory Fund Member Login User Name Password Forgot your password Submit a Question Date 12 5 2012 Name Email Needed only if you expect a reply Subject Message Home Publication Overview Research Papers Monographs and Project Publications Public Research Universities Why They Matter Research Papers Monographs and Project Publications Public Research Universities Why They Matter Published by American Academy of Arts and Sciences Cambridge MA 2015 Order from the Academy Or download the PDF Table of Contents Introduction Section 1 Public Research Universities Serve the National Interest Section 2 Public Research Universities Contribute to the Innovation Economy Section 3 Public Research Universities Provide Quality Educational Opportunities and Programs at an Efficient Cost Section 4 Public Research Universities are Working to Maintain and Improve Access and Affordability Section 5 Public Research Universities Value Responsible Spending Conclusion Resources Find Dædalus Issues View and order copies of Dædalus from 2001 to the present Earlier issues can be found

    Original URL path: https://www.amacad.org/content/publications/publication.aspx?d=21781 (2016-02-13)
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  • Public Research Universities: Understanding the Financial Model - American Academy of Arts & Sciences
    Magazine of the Academy Books Research Papers Monographs and Project Publications Meetings Overview Induction 2015 Upcoming Meetings and Events Friday Forum 2015 2016 Schedule Past Meetings and Events Fellowships Overview Visiting Scholars Program Hellman Fellowship in Science and Technology Policy Policy Fellowship in the Humanities Education and the Arts Policy Fellowship in Global Security and International Affairs The Exploratory Fund Member Login User Name Password Forgot your password Submit a Question Date 12 5 2012 Name Email Needed only if you expect a reply Subject Message Home Publication Overview Research Papers Monographs and Project Publications Public Research Universities Understanding the Financial Model Research Papers Monographs and Project Publications Public Research Universities Understanding the Financial Model Published by American Academy of Arts Sciences Cambridge MA 2016 Order from the Academy Or download the PDF Table of Contents Introduction Section 1 Current Revenue Sources for Public Research Universities Section 2 Changes in Major University Expenses over Time Section 3 How are Public Research Universities Responding Conclusion Appendix Alternative Tuition Models Resources Find Dædalus Issues View and order copies of Dædalus from 2001 to the present Earlier issues can be found on the journal database JSTOR Find Bulletin Issues View issues of the

    Original URL path: https://www.amacad.org/content/publications/publication.aspx?d=22069 (2016-02-13)
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