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ERIC Number: EJ1036915
Record Type: Journal
Publication Date: 2014-Aug
Pages: 34
Abstractor: As Provided
Reference Count: 21
ISBN: N/A
ISSN: ISSN-0361-0365
State Spending on Higher Education Capital Outlays
Delaney, Jennifer A.; Doyle, William R.
Research in Higher Education, v55 n5 p433-466 Aug 2014
This paper explores the role that state spending on higher education capital outlays plays in state budgets by considering the functional form of the relationship between state spending on higher education capital outlays and four types of state expenditures. Three possible functional forms are tested: a linear model, a quadratic model, and the balance wheel model. The balance wheel model posits that in good economic times, higher education is funded at a higher rate than other state budget categories. In bad economic times, higher education is often one of the first state budget categories to be cut and is cut more deeply than other state budget categories due, in part, to its ability to tap into alternative revenue streams. We find that capital outlays do not conform to the balance wheel model. Instead they appear to have a quadratic relationship with other state budget categories. We discuss the policy implications of these findings for both higher education leaders and state policymakers.
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Publication Type: Journal Articles; Reports - Evaluative
Education Level: Higher Education; Postsecondary Education
Audience: Policymakers
Language: English
Sponsor: N/A
Authoring Institution: N/A