1. Higher Education Funding and State Government Presented to PADM 6800 State Government (Dr. Paul Harris) Spring 2007 By Braden J. Hosch, Ph.D.

2. Overview Population Change and Pressures on State Funding State Spending on Higher Education: The National Picture State Spending on Higher Education: A Case Study of South Carolina

3. Population Change US Population By Age and Sex, 1900 Male Female Source: U.S. Census Bureau - http://www.census.gov/ipc/www/idbpyr.htmlhttp://www.census.gov/ipc/www/idbpyr.html

4. Population Change US Population By Age and Sex, 1950 Male Female Source: U.S. Census Bureau - http://www.census.gov/ipc/www/idbpyr.htmlhttp://www.census.gov/ipc/www/idbpyr.html

5. Population Change US Population By Age and Sex, 2000 MaleFemale Source: U.S. Census Bureau - http://www.census.gov/ipc/www/idbpyr.htmlhttp://www.census.gov/ipc/www/idbpyr.html

6. Population Change US Population By Age and Sex, 2010 MaleFemale Source: U.S. Census Bureau - http://www.census.gov/ipc/www/idbpyr.htmlhttp://www.census.gov/ipc/www/idbpyr.html

7. Population Change US Population By Age and Sex, 2020 MaleFemale Source: U.S. Census Bureau - http://www.census.gov/ipc/www/idbpyr.htmlhttp://www.census.gov/ipc/www/idbpyr.html

8. Population Change US Population By Age and Sex, 2030 MaleFemale Source: U.S. Census Bureau - http://www.census.gov/ipc/www/idbpyr.htmlhttp://www.census.gov/ipc/www/idbpyr.html

9. Population Change US Population By Age and Sex, 2040 MaleFemale Source: U.S. Census Bureau - http://www.census.gov/ipc/www/idbpyr.htmlhttp://www.census.gov/ipc/www/idbpyr.html

10. Population Change US Population By Age and Sex, 2050 MaleFemale Source: U.S. Census Bureau - http://www.census.gov/ipc/www/idbpyr.htmlhttp://www.census.gov/ipc/www/idbpyr.html Animated Link

11. Implications of Population Change Shift in budget priorities from education to health care Change in Number of Individuals from 2007* Age Group Δ 20-24Δ 70+ 2010715,1391,006,323 2020-210,4679,948,301 20302,174,96424,407,889 20403,936,26034,746,966 20505,335,96039,196,494 Shift in mission of higher education to provide continuing education throughout the lifespan *Source: U.S. Census Bureau - http://www.census.gov/ipc/www/idbpyr.htmlhttp://www.census.gov/ipc/www/idbpyr.html

12. Enrollment Growth and Appropriations Source: State Higher Education Finance FY 2006 (SHEEO, 2007) In constant 2006 dollars, adjusted by Higher Education Cost Adjustment (HECA)

13. Total Educational Revenue Per FTE Source: State Higher Education Finance FY 2006 (SHEEO, 2007) In constant 2006 dollars, adjusted by Higher Education Cost Adjustment (HECA)

14. Net Tuition as a % of Public Higher Education Total Educational Revenue Source: State Higher Education Finance FY 2006 (SHEEO, 2007)

15. Higher Education Appropriations in Southern States Fiscal 2006Fiscal 2005Fiscal 2004 State Higher Education Support 1 Per Capita 2 National Index Higher Education Support 1 Per $1000 of Personal Income National Index Tax Revenues and Lottery Profits (thousands) Higher Education Support 1 (thousands) Allocation to Higher Education Alabama$3061.18 $9.001.27 $10,535,366$1,167,95711.1% Florida$1930.74 $4.980.70$54,839,454$2,710,9614.9% Georgia$2801.08 $8.661.22$26,437,450$2,343,4478.9% Kentucky$2871.10 $9.181.30$11,653,974$1,108,6889.5% Louisiana$3001.15$11.581.64$13,186,630$1,245,3089.4% Maryland$2721.04 $6.030.85$22,789,497$1,355,3565.9% North Carolina$3651.40$10.901.54$25,012,464$2,607,04910.4% South Carolina$2370.91 $7.841.11$11,466,706$781,7296.8% Tennessee$2160.83 $7.051.00$15,070,338$1,088,6817.2% Virginia$2100.81 $5.260.74$25,410,405$1,358,4455.3% West Virginia$2290.88 $9.021.27$5,479,645$406,5747.4% U.S.$2601.00 $7.081.00$1,020,012,078$69,686,4116.8% Source Notes: 1. Higher Education Support = State and local tax and nontax support for public and independent higher education. Includes special purpose appropriations for research-agricultural-medical. Source: SHEEO SHEF 2. Population and personal income data from U.S. Census Bureau and Bureau of Economic Analysis. 3. State and local tax revenues data from U.S. Census Bureau; lottery profits data from North American Association of State and Provincial Lotteries. Source: State Higher Education Finance FY 2006 (SHEEO, 2007)

16. South Carolina Higher Education Appropriations 2000-01 to 2006-07 Source: South Carolina Budget and Control Board, Historical Analysis, http://www.budget.sc.gov/webfiles/oo/historical/histana-web.pdf http://www.budget.sc.gov/webfiles/oo/historical/histana-web.pdf

17. South Carolina Tuition & State Appropriations, 1999-2005 Source: SC CHE. Chart excludes MUSC. State Appropriations Per FTE calculated using Fall FTE; dollars are not adjusted for inflation.

18. Undergraduate Tuition in Southern States Source: Southern Regional Education Board http://www.sreb.org/main/EdData/reports/DEHighlights06.pdf http://www.sreb.org/main/EdData/reports/DEHighlights06.pdf

19. State Funding Per FTE Student in Southern States Source: Southern Regional Education Board http://www.sreb.org/main/EdData/reports/DEHighlights06.pdf http://www.sreb.org/main/EdData/reports/DEHighlights06.pdf

20. Tuition Revenue Per FTE Student in Southern States Source: Southern Regional Education Board http://www.sreb.org/main/EdData/reports/DEHighlights06.pdf http://www.sreb.org/main/EdData/reports/DEHighlights06.pdf

21. Operating Expenditures Per FTE Operating expenditures per FTE student have increased for comprehensive universities on average by just 0.5% annually between 1999 and 2003 in unadjusted dollars. Source: IPEDS Peer Analysis System. National Center for Education Statistics. Fall FTE from CHEMIS is used for the per FTE calculation.

22. Instruction & Academic Support Expenditures for Instruction and Academic Support per FTE have increased at an annual rate of less than 2.75% for universities in the comprehensive teaching sector. Teaching Sector Institution 2003-04 Instr & Ac Supp. Four Year % Change The Citadel$7,25415% Coastal Carolina Univ.$5,2260% College of Charleston$5,90017% Francis Marion Univ.$5,7982% Lander University$5,3304% South Carolina State Univ.$7,97210% U.S.C. - Aiken$5,82110% U.S.C. - Beaufort$6,80445% U.S.C. - Upstate$5,2452% Winthrop University$5,8305% Teaching Sector Total$6,11811% Source: IPEDS Peer Analysis System. National Center for Education Statistics. Fall FTE from CHEMIS is used for the per FTE calculation.

23. Graduation Rates in South Carolina Six-year graduation rates from SC comprehensive universities are among the highest in the region compared to similar institutions. Teaching Sector Institution 2004 6-Year Grad Rate The Citadel66% Coastal Carolina Univ.40% College of Charleston57% Francis Marion Univ.41% Lander University42% SC State Univ.53% U.S.C. - Aiken41% U.S.C. - Upstate41% Winthrop University57% Sector Total (SC)49% Research Sector (SC)68% Source: IPEDS Peer Analysis System. National Center for Education Statistics. Statistics are unweighted.

24. Degrees Conferred in Southern States Source: Southern Regional Education Board http://www.sreb.org/main/EdData/reports/DEHighlights06.pdf http://www.sreb.org/main/EdData/reports/DEHighlights06.pdf

25. Degrees Conferred Nationally Per State Resident (#1-25) RankState Proportion of Enrolled Students Who Received Degrees in 2003-04 Degrees Awarded Per 1,000 State Residents 2003-04RankState Proportion of Enrolled Students Who Received Degrees in 2003-04 Degrees Awarded Per 1,000 State Residents 2003-04 #1Dist. of Columbia21.1%36.6#14Kansas20.1%8.5 #2Massachusetts22.9%12.4#15Minnesota17.8%8.2 #3Rhode Island18.9%11.2#16Arizona16.6%8.1 #4Utah15.9%10.6#17Indiana17.9%8.1 #5Vermont19.8%10.4#18South Dakota14.4%8.1 #6North Dakota16.4%10.1#19Michigan19.6%7.9 #7New York21.8%9.5#20Colorado17.3%7.9 #8Missouri19.9%9.5#21Illinois23.0%7.8 #9Nebraska20.4%9.4#22Wisconsin19.8%7.8 #10Delaware20.9%9.2#23Connecticut21.4%7.7 #11Iowa19.5%8.9#24Montana17.5%7.3 #12Pennsylvania20.7%8.8--US19.5%7.2 #13New Hampshire20.1%8.6#25Maryland20.6%7.1 Source: The Chronicle of Higher Education Almanac Issue 2006-07 53.1, August 25, 2006. Population Data are from the U.S. Census Bureau http://www.census.gov/popest/states/tables/NST-EST2006-01.xlshttp://www.census.gov/popest/states/tables/NST-EST2006-01.xls

26. Degrees Conferred Nationally Per State Resident (#26-51) RankState Proportion of Enrolled Students Who Received Degrees in 2003-04 Degrees Awarded Per 1,000 State Residents 2003-04RankState Proportion of Enrolled Students Who Received Degrees in 2003-04 Degrees Awarded Per 1,000 State Residents 2003-04 #26Alabama18.1%7.1#39Maine15.1%6.0 #27Ohio19.5%7.0#40California22.2%5.9 #28Oklahoma17.7%7.0#41SouthCarolina18.7%5.8 #29Virginia19.2%7.0#42New Mexico16.0%5.7 #30West Virginia15.7%6.9#43Mississippi19.8%5.6 #31Oregon21.0%6.8#44Texas19.3%5.6 #32Louisiana15.7%6.7#45Florida16.6%5.5 #33North Carolina19.7%6.3#46Idaho11.7%5.4 #34Hawaii19.1%6.2#47New Jersey20.0%5.3 #35Georgia18.5%6.2#48Arkansas15.3%5.2 #36Washington24.3%6.1#49Wyoming17.1%4.5 #37Tennessee18.5%6.1#50Nevada8.3%3.2 #38Kentucky16.5%6.1#51Alaska6.8%3.1 Source: The Chronicle of Higher Education Almanac Issue 2006-07 53.1, August 25, 2006. Population Data are from the U.S. Census Bureau http://www.census.gov/popest/states/tables/NST-EST2006-01.xlshttp://www.census.gov/popest/states/tables/NST-EST2006-01.xls