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Major Study Provides 50 State Survey of Higher Education Funding

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Kelly Rosinger

By Mary Harrison

Kelly Rosinger (McBee PhD), Robert Kelchen, Mitchell Lingo, Dominique J. Baker, Justin Ortagus, and Jiayao Wu collaborated on a ground-breaking research study entitled, “A Typology and Landscape of State Funding for Public Colleges and Universities from 2004 to 2021” published in the Review of Higher Education.

This work fills a gap in the literature by creating a comprehensive longitudinal analysis and classification system of how states fund postsecondary education. The research team used 15 years of data to examine state funding levels, the mechanisms all fifty states use to allocate funds, and how financial downturns have affected funding formulas.

Kelchen et al. emphasize the importance of understanding funding systems over this volatile period, “decreases in higher education funding have direct negative consequences for long standing attainment gaps by race, family income, and parental education.”

Three research questions guided the study, which include investigating the mechanisms states and systems use to allocate funds, the extent volatility in funding formulas is related to volatility to state appropriations, and the extent the use of equity metrics vary when funding formulas or state appropriations change.

Based on results, they found significant differences in funding formulas for four-year and two-year institutions. They also report nearly half of all systems saw a change in the funding formula used by policy makers during the period.

In response, the researchers encourage state higher education agencies to implement clearer cycles for reviewing formulas to create greater predictability and flexibility for institutional leaders.

For future research, the team suggests more study into funding strategies’ effects on student access and success and on reversing enrollment declines.

Full article: https://doi.org/10.1353/rhe.0.a915981

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