ERIC Number: ED481711
Record Type: RIE
Publication Date: 2002-Oct
State Spending for Higher Education in the Coming Decade.
This report describes 8-year projections of state and local government fiscal gaps and surpluses, suggesting that even if state and local governments close their current budget gaps with entirely recurring actions, most states will face continuing difficulty financing current services with existing revenue structures and will not have resources for real higher education spending increases. Given that state and local governments have increased real per-capita spending significantly in each of the last 5 decades, citizens will have to either reduce their need for government services or support changes in revenue structures to finance new growth. Under the "base case" projections presented in this document, within 8 years from the time state and local governments close current budget shortfalls, they are likely to face gaps that for the nation overall approximate 3.4 percent of revenue. Over 40 states face gaps under these assumptions, with 12 facing gaps of 5 percent or more of revenue. Gaps vary widely across states, depending on economic and demographic forecasts and revenue and spending structures. States that do not have income taxes are more likely to face large gaps. For the nation overall, higher education spending is projected to grow 40 percent over 8 years, considerably slower than the 47.4 percent growth projected for total spending. (SM)
Descriptors: Budgets, Educational Finance, Elementary Secondary Education, Expenditures, Federal Aid, Higher Education, Income, Local Government, School District Spending, State Aid
National Center for Higher Education Management Systems, P.O. Box 9752, Boulder, CO 80301-9752. Tel: 303-497-0301. For full text: http://www.nchems.org/presenta.htm.
Publication Type: Reports - Descriptive
Education Level: N/A
Authoring Institution: National Center for Higher Education Management Systems, Boulder, CO.