Institutional Revenue: Public Appropriations over Time
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State appropriations per full-time equivalent (FTE) student declined by 9% in inflation-adjusted dollars between 2007-08 and 2008-09, by 6% in 2009-10, and by 4% in 2010-11. Average tuition and fees at public four-year colleges rose by 9% beyond inflation in 2009-10 and by 7% in 2010-11.
State appropriations per full-time equivalent (FTE) student declined by 9% in inflation-adjusted dollars between 2007-08 and 2008-09, by 6% in 2009-10, and by 4% in 2010-11. Average tuition and fees at public four-year colleges rose by 9% beyond inflation in 2009-10 and by 7% in 2010-11.
Key Points
- After increasing by 6% in the 1980s and by 5% in the 1990s, state appropriations per FTE student declined by 23% in inflation-adjusted dollars over the decade from 2000-01 to 2010-11.
- The 18% real decline in state appropriations per FTE student from 2007-08 to 2010-11 was the largest three-year decline in the 30 years of data reported here.
- Federal funds from the American Recovery and Reinvestment Act supplemented state funds over three fiscal years, from 2008-09 through 2010-11. As Figure 10A shows, the decline in total appropriations was smaller than it would otherwise have been in 2008-09 and 2009-10. The decline in federal funds from $657 million in 2009-10 to $308 million in 2010-11 caused a sharper decline in overall educational funding than in state funding that year.
- FTE enrollment in public colleges and universities increased by 9% from 1990-91 to 2000-01 and by 33% over the most recent decade. Enrollment grew by 7% in 2009-10, the largest one-year increase since 1975-76.
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- From fall 2000 to fall 2008, total FTE enrollment in public institutions in the United States increased by 22%. Enrollment growth ranged from 5% in Louisiana and 10% in Tennessee and Illinois, to 43% in Georgia and 46% in Nevada. (NCES, Digest of Education Statistics 2010, Table 227)
- Between 2009-10 and 2010-11, total state appropriations for higher education, including federal stimulus funds, increased by 25% in Wyoming, by 7% in California and by 6% in North Carolina. Appropriations declined by more than 10% in six states. (Illinois State University, Grapevine, http://grapevine.illinoisstate.edu/fifty_state_summary.htm)
- Between 2009-10 and 2010-11, total appropriations increased by more than 1% in 12 states, declined by more than 1% in 28 states, and changed by less than 1% in 10 states.
Key Points
- After increasing by 6% in the 1980s and by 5% in the 1990s, state appropriations per FTE student declined by 23% in inflation-adjusted dollars over the decade from 2000-01 to 2010-11.
- The 18% real decline in state appropriations per FTE student from 2007-08 to 2010-11 was the largest three-year decline in the 30 years of data reported here.
- Federal funds from the American Recovery and Reinvestment Act supplemented state funds over three fiscal years, from 2008-09 through 2010-11. As Figure 10A shows, the decline in total appropriations was smaller than it would otherwise have been in 2008-09 and 2009-10. The decline in federal funds from $657 million in 2009-10 to $308 million in 2010-11 caused a sharper decline in overall educational funding than in state funding that year.
- FTE enrollment in public colleges and universities increased by 9% from 1990-91 to 2000-01 and by 33% over the most recent decade. Enrollment grew by 7% in 2009-10, the largest one-year increase since 1975-76.
Also Important (View)
- From fall 2000 to fall 2008, total FTE enrollment in public institutions in the United States increased by 22%. Enrollment growth ranged from 5% in Louisiana and 10% in Tennessee and Illinois, to 43% in Georgia and 46% in Nevada. (NCES, Digest of Education Statistics 2010, Table 227)
- Between 2009-10 and 2010-11, total state appropriations for higher education, including federal stimulus funds, increased by 25% in Wyoming, by 7% in California and by 6% in North Carolina. Appropriations declined by more than 10% in six states. (Illinois State University, Grapevine, http://grapevine.illinoisstate.edu/fifty_state_summary.htm)
- Between 2009-10 and 2010-11, total appropriations increased by more than 1% in 12 states, declined by more than 1% in 28 states, and changed by less than 1% in 10 states.
Figure 10A: Annual Percentage Changes in State Appropriations for Higher Education per Full-Time Equivalent (FTE) Student and Changes in Inflation-Adjusted Tuition and Fees at Public Four-Year Institutions, 1980-81 to 2010-11
| Academic Year | Appropriations per FTE | Appropriations per FTE Excluding Federal Stimulus | Tuition and Fees |
|---|---|---|---|
| 80-81 | -6.59% | -3.70% | |
| 81-82 | -3.12% | 2.07% | |
| 82-83 | -1.74% | 6.56% | |
| 83-84 | 3.33% | 8.67% | |
| 84-85 | 9.58% | 2.65% | |
| 85-86 | 3.29% | 3.65% | |
| 86-87 | 2.08% | 5.62% | |
| 87-88 | 0.37% | 1.05% | |
| 88-89 | -0.37% | 2.05% | |
| 89-90 | -1.48% | 2.38% | |
| 90-91 | -5.46% | 7.32% | |
| 91-92 | -7.45% | 5.73% | |
| 92-93 | -4.49% | 7.38% | |
| 93-94 | 1.93% | 5.68% | |
| 94-95 | 1.85% | 3.83% | |
| 95-96 | 1.26% | 1.12% | |
| 96-97 | 1.53% | 2.80% | |
| 97-98 | 2.91% | 2.29% | |
| 98-99 | 4.73% | 2.64% | |
| 99-00 | 3.44% | 1.37% | |
| 00-01 | -0.17% | 0.66% | |
| 01-02 | -3.67% | 4.51% | |
| 02-03 | -6.44% | 7.24% | |
| 03-04 | -6.56% | 11.01% | |
| 04-05 | 2.93% | 7.15% | |
| 05-06 | 4.11% | 3.85% | |
| 06-07 | 2.16% | 1.47% | |
| 07-08 | 1.88% | 1.88% | 4.21% |
| 08-09 | -8.65% | -11.29% | 0.82% |
| 09-10 | -5.67% | -8.71% | 9.25% |
| 10-11 | -4.26% | -1.76% | 6.68% |
The 0% line corresponds to changes in appropriations that compensate only for the overall rate of inflation in consumer prices. Negative percentage changes indicate declines in inflation-adjusted appropriation amounts. The dotted line represents the percentage change that would have occurred were federal stimulus funds not appropriated in 2008-09 through 2010-11.
SOURCES: The College Board, Annual Survey of Colleges; Illinois State University, Grapevine reports; NCES, Digest of Education Statistics 2010, Table 226; calculations by authors.
Figure 10B: State Appropriations for Higher Education: Total Appropriations in Constant 2010 Dollars (in Billions), Appropriations per Public FTE Student in Constant 2010 Dollars (in Thousands), and Public FTE Enrollment (in Millions), 1980-81 to 2010-11
| Academic Year | Appropriations per FTE | Appropriations per FTE Excluding Federal Stimulus |
|---|---|---|
| 80-81 | $8.3 | |
| 81-82 | $8.1 | |
| 82-83 | $7.9 | |
| 83-84 | $8.2 | |
| 84-85 | $9.0 | |
| 85-86 | $9.3 | |
| 86-87 | $9.5 | |
| 87-88 | $9.5 | |
| 88-89 | $9.5 | |
| 89-90 | $9.3 | |
| 90-91 | $8.8 | |
| 91-92 | $8.2 | |
| 92-93 | $7.8 | |
| 93-94 | $7.9 | |
| 94-95 | $8.1 | |
| 95-96 | $8.2 | |
| 96-97 | $8.3 | |
| 97-98 | $8.6 | |
| 98-99 | $9.0 | |
| 99-00 | $9.3 | |
| 00-01 | $9.3 | |
| 01-02 | $8.9 | |
| 02-03 | $8.3 | |
| 03-04 | $7.8 | |
| 04-05 | $8.0 | |
| 05-06 | $8.4 | |
| 06-07 | $8.5 | |
| 07-08 | $8.7 | $8.7 |
| 08-09 | $7.9 | $7.7 |
| 09-10 | $7.5 | $7.0 |
| 10-11 | $7.2 | $6.9 |
NOTE: Fall 2010 FTE enrollment was based on preliminary IPEDS numbers. Appropriations reported here are for institutional operating expenses, not for capital expenditures. Funding includes both tax revenues and other state funds allocated to higher education.
SOURCES: The College Board, Annual Survey of Colleges; Illinois State University, Grapevine reports; NCES, Digest of Education Statistics 2010, Table 226; calculations by authors.
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