State appropriations for higher education increased nominally over the last year, according to an annual survey. But the small rise and wide variations across the nation underscore why many public colleges still have reason to fret about their states’ economies.
Over all, state appropriations for colleges were 1.6 percent higher for the current fiscal year, which began on July 1 for most states, than in the previous one, according to the annual “Grapevine” survey, compiled by the Center for the Study of Education Policy at Illinois State University and the State Higher Education Executive Officers, known as Sheeo.
But several factors erase any notion that the national gains in higher-education spending amount to a significant step up. This year’s increase is the smallest in five years, and it falls short of the 2.1-percent increase in the Consumer Price Index for the 2017 calendar year.
In addition, the overall increase is due almost entirely to the increased appropriations in California, Florida, and Georgia, according to the survey’s findings. Without those three states, the overall increase is barely noticeable — just two-tenths of a percent.
And there is wide variation among the 50 states. Eighteen states reported increases, ranging from 2 percent, in Michigan, to more than 11 percent, in Florida. A dozen states had increases of 2 percent or less.
Nineteen states cut spending for higher education, with the decreases ranging from one-tenth of a percent, in Ohio, to 14.6 percent, in North Dakota.
Over the past five years, most states have made significant increases in higher-education appropriations, with a nearly 21-percent increase in spending nationwide, according to the Grapevine figures. Over that time, 40 states have spent more on higher education. The biggest gainers, California and Florida, have seen increases of more than 50 percent.
The biggest losers, meanwhile, were Oklahoma and West Virginia.
But the future of state spending in all areas remains uncertain. A report from the American Association of State Colleges and Universities listed “sluggish state revenues” as the second-greatest issue facing public higher education in the coming year.
Low prices for oil and agricultural commodities have hampered state revenues in recent years, the report notes, as have state tax cuts enacted in the wake of the Great Recession. The future economic outlook is “stable,” the report says, “but tight.”
Its final prediction: “More states will likely confront budget shortfalls as 2018 unfolds.”
Ben Myers contributed to this article.
Eric Kelderman writes about money and accountability in higher education, including such areas as state policy, accreditation, and legal affairs. You can find him on Twitter @etkeld, or email him at eric.kelderman@chronicle.com.
