Beginning with the advent of land-grant universities, public colleges have depended on government support to cover some of the costs of providing quality education. In contrast to private institutions of higher education, public institutions have historically received substantial government funds to pay faculty salaries, support research and maintain their campuses. Though the trend of states allocating less of their budgets to public colleges began before the economic downturn, these cuts have intensified since 2007. According to CBS MoneyWatch, with very few exceptions, every U.S. state is spending less per student. Nationally, the average decrease is 28 percent.
The effects of declining state spending on education are widespread. Institutions of higher education are doing anything they can to reduce costs and increase revenue. Common cost-cutting measures include decreasing full-time faculty, creating larger classes, offering fewer research opportunities and avoiding construction projects.
Many state schools are experimenting with varying levels of privatization. In return for providing less funding, state legislatures are agreeing to decreased their authority over school governance. Indeed, the level of state funding for public colleges is approaching that of private colleges. Several top-tier research universities, including Washington, Michigan and Virginia, have chosen to privatize. These schools can raise funds by enrolling more out-of-state students, who pay two or three times the tuition of in-state students.
Students are bearing the most burden of decreased government spending on higher education. Tuition rates have soared to make up for colleges’ budget deficits. According to the College Board, the average tuition for a public four-year institution has risen from $6,439 in 2006 to $8,655 in 2013. The rise in tuition has far outpaced the growth of the average American household income. Students and families often cover the cost by borrowing more loans. The class of 2011 graduated with an average debt load of $26,600.
The rising cost of education will impact the economic future of the United States. A report from the Center on Budget and Policy Priorities, a non-partisan think tank, outlines the cyclical nature of this problem. Not only does rising tuition result in lower enrollment rates, but it also drags down graduation rates. The decreased supply of skilled workers dissuades employers from locating their businesses in a given area. Economic growth stalls and there are fewer jobs available, which makes it more difficult for individuals to pay for a college education.