Trends in State Funding and Tuition Revenue for Public Higher Education: 1980-2019

September 17, 2020

Andrew Gillen, Ph.D.

Andrew Gillen, Ph.D., is a senior policy analyst in the Next Generation Texas campaign and an adjunct professor of economics at Johns Hopkins University. Dr. Gillen’s recent work has focused on how to reform federal financial aid, how state disinvestment is a myth, and how post-college earnings and debt should be used to inform student choice and government accountability.

Prior to joining the Foundation, Dr. Gillen spent over a decade at nonprofit and philanthropic organizations researching and trying to improve higher education. He was a program officer for the Charles Koch Foundation and served in research roles for American Institutes for Research, Education Sector; the American Council of Trustees and Alumni; and the Center for College Affordability and Productivity. He was also on the U.S. Department of Education’s Advisory Committee on Student Financial Assistance.

Andrew has a Ph.D. in economics from Florida State University and a B.B.A. (business) degree from Ohio University.

Contrary to the conventional wisdom, states had been increasing funding of higher education prior to the novel coronavirus pandemic.

Key points:

From 1980 to 2019, inflation-adjusted state funding has increased by $12 to $48 per student per year.
An upward trend in state funding exposes the myth of state disinvestment, but belief in this myth remains widespread due to overgeneralizing from unrepresentative data and a failure to correct for inflation.
From 1980 to 2019, inflation-adjusted tuition revenue increased by $126 to $143 per student per year.
Inflation-adjusted total educational/instructional revenue increased substantially over time, and 2019 set a new record high of over $15,000 per student.
Changes in state funding do not explain changes in tuition. State funding has increased over time, and the numbers do not match even when funding is cut. From 2008 to 2019, state funding fell by $259 per student, yet tuition increased by $2,233.

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Andrew Gillen, Ph.D.

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