Trends in State Funding and Tuition Revenue for Public Higher Education: 1980-2020

July 28, 2021

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.

This study examines trends in state funding and tuition revenue in higher education over the past four decades and updates our past research on the subject using the latest data.

Key points:

From 1980 to 2020, inflation-adjusted state funding has increased by $16 to $52 per student per year. These increases indicate that “state disinvestment” is a myth.
State funding has completely recovered from the cuts made during the Great Recession.
From 1980 to 2020, inflation-adjusted tuition revenue increased by $127 to $143 per student per year.
Inflation-adjusted total educational/instructional revenue increased substantially over time, and 2020 set a record high of $15,276 per student.
Changes in state funding do not explain changes in tuition.

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Andrew Gillen, Ph.D.

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