As the U.S. continues to embrace a comprehensive plan for economic recovery, this article investigates the validity of the claim that investing in higher education will help restore state economic growth and prosperity. It presents the findings from a study that indicates that the most consistent predictors of state economic growth related to…

This article examines three trends that challenge the provision of elementary and secondary education. Using the Commonwealth of Virginia as an example, this study compares national and state trends that threaten the stability and funding of public education. The following three trends are likely to present the greatest challenges to the…

Student retention and low graduation rates are the most significant problems associated with state provided student aid. Evidence suggests that the problems are chronic to certain populations in state colleges and universities. This research examines lottery scholarship data to determine those factors that affect scholarship retention and…

Severe fiscal tensions threaten U.S. public higher education. Many policy solutions have been suggested, but it is difficult to subject these qualitative ideas to rigorous empirical evaluation. In this work, we employ an agent-based model of a representative state-funded public university system (including a flagship campus, an urban campus, and…

This study considers the relationship between federal academic earmarks and state appropriations for higher education. Often referred to as "pork," federal academic earmarks are both controversial and understudied. Using a unique panel dataset which spans 1990-2006, this study conducts a panel analysis with two-way state and year-fixed effects. It…

This article considers the role of higher education in state budgets. It empirically models and tests the balance wheel hypothesis in a robust framework. The balance wheel model posits that in good economic times, higher education is an attractive area for states to fund and tends to be funded at a higher rate than other state budget categories.…

In the United States, public higher education finance policy is primarily decided at the state level, and policies can vary dramatically across state lines. Data was used from 1989-1990 and 2008-2009 to describe these differences and how they have changed over time. Numerous aspects of each state's higher education system were examined--average…

Little empirical attention has been paid to state capital expenditures for higher education. While some anecdotal evidence exists that the process of appropriating capital dollars to higher education institutions is a particularly political process, no study has systematically examined the determinants of higher education state capital spending.…

Previous empirical literature finds that government expenditure on higher education has a negative, or null, effect on U.S. economic growth rates. This empirical result may be driven by omission of an important variable--the privatization of higher education. Using state-level panel data from 1970 to 2005, this analysis investigates whether the…

A Maintenance of Effort (MOE) provision for higher education was first adopted in the Higher Education Opportunity Act of 2008 and was included as a requirement for states to participate in the American Recovery and Reinvestment Act of 2009 (ARRA). The information in this article was presented before the U.S. House of Representatives Committee on…

Congress has recently focused on the complex relationship between federal student aid, states' funding appropriations for higher education, and institutional tuition and fee levels. Fueling this focus is the ongoing cost shit in public higher education, from states to students and families, as well as to the federal government via student aid…

No empirical studies have attempted to explain why states invest differentially in their research and in their non-research universities, although these differences hold important implications for students, postsecondary systems, and society. Deploying a form of hierarchical-linear modeling, our study examines across-state variation in state…

Although datasets such as the Integrated Postsecondary Data System are available as inputs to higher education funding formulas, these datasets can be unreliable, incomplete, or unresponsive to criteria identified by state education officials. State formulas do not always match the state's economic and human capital goals. This article analyzes…

Institutional performance was a topic given considerable attention by the Commission on the Future of Higher Education. Florida's Community College System responded to the challenge by committing to increase performance-based funding allocations from less than 2% to 5% of total state appropriations. Results of the analysis indicated that…

Changes in the financial situations among the second tier of liberal arts colleges between 1996 and 2001 are documented using Integrated Postsecondary Education Data System financial and enrollment data. These data show large disparities in net assets per student, expenses per student, and the subsidies per full-paying student and the average…