Public universities have two main revenue sources to cover educational costs- state funding and tuition revenue. This annual report documents trends in both revenue sources from 1980 to 2022.
Key Points
- State funding has grown considerably over time. From 1980 to 2022, the long-run trend is an increase of $22 to 459 per student per year. This sustained increase in funding indicates that “state disinvestment” is a myth.
- State funding has reached an all-time high of $10,237, surpassing the previous high of $9,938 established in 2001.
- From 1980 to 2022, tuition revenue increased by $141 to $159 per student per year. However, this historical pattern may be changing as tuition revenue has been trending down for the past four years.
- Inflation-adjusted total education/instructional revenue increased substantially over time, reaching $17, 393 per student in 2022, the highest ever recorded.
- The statistical relationship between changes in state funding and changes in tuition is quite weak, providing little support for the argument that tuition is rising to make up for cuts in state funding.