Decline in California and National Higher Education Funding Since the Recession
The Center of Budget and Policy Priorities put together data in a paper on May 1, 2014 analyzing the drop in Higher Education funding during the current recession, from Fiscal Year 2007-8 to FY 2013-14.
Nationwide, the expense per student has fallen $2,026 or 23%. The worst fall was in Arizona which had a drop of 48.5%. California had a drop of 15.8% The only states with increases were Alaska of 3.5%, and North Dakota of 38.6%. The drops in some comparative states to California are:
Massachusetts: – 36.3%
Pennsylvania: – 30.7%
Florida: – 29.7%
Texas: – 22.5%
Ohio: – 21.7%
California: – 15.8%
Illinois: – 13.5%
New York: – 11.1%
The recovery in the last year FY 13-14 had 42 states increase funding per student by an average of 7.2% or $449. California increased its funding by 11.1% for a change of plus $728 per student. However, over the recession FY 08 to FY 14, California had the fourth highest tuition increase of plus 62.4%, or $3,474. The change in state funding per student in California from FY08 – FY14 was a drop of $1,373.
Nationwide, tuition revenue as a percent of “total educational revenue” FY88 – FY13 rose from about 23% to about 47%: this is doubling the percentage tuition plays. However, the income of the median household had stayed flat over this period.