ERIC Number: ED461333
Record Type: RIE
Publication Date: 2001-Jun
Financing Higher Education in the New Century: The Third Annual Report from the States.
McKeown-Moak, Mary P.
This is the third in a series of annual reports that summarize financial trends affecting higher education. State appropriations to higher education reached $60.6 billion in fiscal year (FY) 2001, an increase of 7.0% over FY 2000 in current funds, and a 5.0 constant dollar increase. However, total state general fund appropriations for all government sectors increased by 7.2% over FY 2000, marking the end of the era in which higher education appropriations outpaced the increase in total state general fund appropriations. Recent indications are that the economy is reaching a watershed, and that increased competition for state funds is likely in FY 2002. Total state appropriations to higher education declined to 12.8% of state budgets in FY 2001, after 2 years in a row of increases in higher education's share of state general fund budgets. A mix of issues was addresses in the 2000 legislative sessions. These included an increase in the use of performance measures and other accountability requirements and an interest in nonneed-based financial aid programs. On the student aid front, average levels of student indebtedness at graduation continued to increase alarmingly, with loans comprising more than 60% of all student financial aid. Workforce preparation, accountability, performance-based funding, affordability, and reform of teacher preparation programs are the top issues facing higher education on state legislative agendas in 2001. These issues and increasing competition for state resources mean that 2001 will be a challenging legislative year for higher education officials. (Contains 4 exhibits and 37 endnotes.) (SLD)
Descriptors: Annual Reports, Budgeting, Distance Education, Economic Factors, Educational Finance, Educational Trends, Higher Education, Income, Resource Allocation, State Aid, State Legislation, Student Financial Aid, Trend Analysis
State Higher Education Executive Officers, 707 Seventeenth Street, Suite 2700, Denver, CO 80202-3427 ($16). Tel: 303-299-3686; Fax: 303-296-8332; Web site: http://www.sheeo.org.
Publication Type: Reports - Descriptive
Education Level: N/A
Authoring Institution: State Higher Education Executive Officers Association.; MGT of America, Inc., Tallahassee, FL.
Grant or Contract Numbers: N/A
Note: For the first and second annual reports, see ED 428 638 and ED 443 366 respectively.