Tag Archives: student loan crisis

State Government Higher Education Expenditures: 2017 Census of Governments Data

In FY 1977, U.S. state and local government institutions of higher education covered just 20.8% of their expenditures on education with tuition and fees.  That figure peaked at 39.2% in FY 2011, and was 35.0% in FY 2017.   On the other hand, fees and charges at auxiliary enterprises at public colleges and universities, including dormitories, food services, book stores, stadiums, camps and conferences, covered more than 100.0% of their costs more often then not up until FY 2004, interest on debts aside. Such enterprises still covered 92.1% of their costs in FY 2011, but covered just 77.0% of their costs in FY 2017.   And that was before the coronavirus ended the presence of students in on-campus housing, and admission revenues at sporting events.

That is just one of the findings from a tabulation of state and local government finances from the 2017 Census of Governments, along with similar data for prior years.  As noted in the prior post on elementary and secondary schools, local governments also operate community colleges in some states, including New York.  For the most part, however, higher education is a state government function.  While Medicaid, mostly paid to private sector health care providers, and elementary and secondary education, consisting of aid to local government schools, are a larger part of state budgets, public colleges and universities employ more actual state workers than any other government function.  A table, charts and a further discussion about public higher education follow.

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Public Higher Education: Census of Governments Employment and Payroll Data for 2017

The big issue in higher education, or at least the one that has been pushed in the media, is the burden of student loans.  And the explanation for this crisis that has been advanced is the rising cost of college.  According to sources deemed reliable, while tuition has soared in private colleges and universities due to an amenities arms race and a better deal for faculty, in public higher education unwilling taxpayers are to blame.

https://hbr.org/2019/09/what-will-it-take-to-solve-the-student-loan-crisis

The roots of rising college and university costs are not difficult to identify. For the nation’s 1,600-plus public institutions, the chief culprit has been major reductions in state support; public investment in higher education has been in retreat in the states since about 1980, according to the American Council on Education. State funding and subsidies were cut by more than $7 billion between 2008 and 2018. What many call the “privatization of public higher education” has shifted most of the states’ share of instructional costs to students and their families, with disruptive results for both students and institutions.

Here is another “study” saying the same thing.

Click to access RB_512HJRB.pdf

I once believed it, but when whenever I looked at the available Census Bureau data on higher education finances, it didn’t fully support it. With the availability of state and local government employment and payroll data for the 2017 Census of Governments, I took another look.

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