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Monday, January, 24, 2011

Sinking States: Plenty of Danger Signs for the Future

We have seen a considerable flurry of recent reports indicating some serious cutbacks in higher education budgets in some states. According to a new SHEEO/CSEP report that is being released today, states are spending $79B on higher ed in 2011, down only .7% from last year. But those cuts are not evenly spread. Texas, California, and Arizona, for example, are imposing more severe cuts. This is a summary from Inside Higher Ed's Scott Jaschik, who was able to peruse an early copy of the report. Here is a report from The Chronicle of Higher Education's Eric Kelderman. From Jaschik:

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Notably, however, there were six states where the percentage losses were in double digits: Missouri (down 13.5 percent); Delaware (12.4 percent); Iowa (12.2 percent); Minnesota (11.7 percent); Arizona (11.6 percent) and Oregon (10.8 percent). Only one state reported a double-digit increase: Wyoming (up 24.7 percent).

While states use different financial procedures to support higher education, the Illinois State-SHEEO study is considered the definitive source on state appropriations, with consistent rules for what is counted (state funds for operating support and student aid) and what's not (funds for building projects and tuition revenue). Federal research grants (a significant budget line for research universities) aren't counted, but the federal stimulus "stabilization" funds -- which were intended to support the operations of public schools and colleges -- are included because they support the same purposes as general state appropriations for higher ed.

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