Major public universities are bracing for deep funding cuts as states scramble to cover growing budget gaps, with schools like the University of Iowa and Missouri State University among the biggest victims.
Facing declining revenue, legislators in Missouri, Nebraska and Iowa recently have reduced state appropriations for public universities and community colleges—more than seven months into those states’ fiscal years.
The University of Nebraska is digesting a likely $13.3 million funding cut for the remainder of the current fiscal year, and staring down a proposal to slash nearly $18 million more over the next two years.
Today’s public university is a completely different animal than it was back in the day. So no surprise that they are much more expensive to run and the model for financing them is also going to be way way different.
Penn State’s enrollment is 1960 was 16,211. 2000 was 40,571. 2015 was 46,848. The entire Penn State system enrollment in 1960 was 20,000. 99,000 today.
It is way easier for taxpayers to provide ample support for in-state students when there are less of them. Problem is, a lot more people want to make use of the entitlement.
Like it is for many things, the good old halcyon days for state U funding are gone and are never coming back.
@emilybee Cutting taxes? No, not really. It’s either states like Illinois that have had series budget issues, or it’s related to the recent (last 1 or 2 years) drop in fuel cost (which impact the oil/gas producing states). In almost all cases, it’s not due to recent tax cuts.
I have to disagree in part with your statement. Some states the drop in oil prices have effected revenue. In others, definitely has nothing to do with oil prices and everything to do with cutting taxes and refusing to raise them when there is a fall in revenue.
Old news here in MI, unfortunately. We have ZERO help from the state (no state scholarships or aid) and the state funds directly to the Us is pitiful at best. It’s why we have some of the highest tuition in the country.
Wisconsin had frozen tuition a few years ago and the Gov just proposed reducing tuition 5%, between the freez and the cut students are projected to save $9k. Vs. if the tuition was allowed to increase annually at the same rate that it had been. I believe Indiana has also frozen tuition
OP here. I just want to clarify that - personally - my main worry is not that these state funding cuts will cause these institutions to raise tuition. As the prior poster pointed out - some of these colleges (WI is a poster child) are lowering tuition. My main concern is that the quality of some of these once great institutions (again University of Wisconsin come to mind) will suffer.
I grew up thinking that several of these flagship campus public universities were reasonably prestigious. I fear that won’t be true much longer.
The problem in many states is that pension costs are crowding out expenditures for current services like higher eduction. Since pension costs are politically difficult to change and the higher eduction lobby is weak, colleges are seen as an easy way to cut costs.
In regards to Wisconsin, UW-Madison had a bloated administration that operated hidden slush funds and needed significant reform.
One college that I understand is just getting killed is LSU. After reading articles like the one below - one is left wonder - who in their right mind would send their kind there.
I guess what I am saying is - when considering a public university - one needs to keep an eye on the state funding levels and budgets in that state legislature.
State budget shortfall brings more uncertainty to LSU students, faculty
Since 2010, nearly 300 faculty members have left the university’s seven campuses. During the 2015-2016 academic year alone, the flagship campus lost 40 professors, including 27 assistant professors. Alexander says he is not aware of any wholesale exodus underway during the current academic year, though it’s still early in the semester. But the chronic budget cuts and lack of certainty make it hard to recruit new faculty.
Since 2009, state general fund direct appropriations to LSU declined by $141 million, more than 53%. Last year, Gov. John Bel Edwards’ budget, when initially proposed, would have cut LSU’s funding by more than 30%. By the time lawmakers had adjourned their second special session three months later, approving $1.2 billion in new taxes in the process, the cuts were down to just 0.5%.
Yes, large pensions are easy to promise and easy to underfund, because someone else in the future will have to deal with the mess. But the present is what the future was a few decades ago.
There is no indication UW had or has a “bloated admin”. Actually total admin costs are low compared to peers. They were building the reserves in the very likely chance the governor would slash funding. In reality the reserves were average for such an institution. But they did not highlight or ask for permission although there was no reg saying they had to do that. A;so WI has one of the best funded pension operations of any state.