Public funding for colleges has decreased by $7 billion. Increased tuition is one of the factors that has led to the decrease in funding. Interestingly, the main factor that has led to the decrease in public funding is rising health care costs.
Hawaii, California, Wyoming and North Dakota are the only states that have spent more on education. Nine states have decreased their funding by 30 percent. The increase in tuition and decrease in state funding have created a lot of problems for families.
Studies have shown that a reduction in state funding has also had a negative impact on student performance. There is less funding available for advising, tutoring and mentoring. This has led to a decrease in the number of students who are completing their degree.
The decrease in public funding has also hurt colleges’ reputations. In 1987, there were eight public colleges on the list of the top 25 schools in the nation. Today, there are only three public colleges that made the list.
There are other factors that have caused colleges to fall behind their competitors. This includes faculty salaries and SAT scores. These problems have raised two important questions. Why are states giving out less funding for education? What can states do about this problem?
Tom Kane works for Harvard University. He has done research to find out why there is less money for states to spend on education. He found that the culprit behind this problem is the rising cost of health care. States are spending more money on health care than they did in the past. As a result of this, they do not have as much money to spend on public education.
States had to decrease their spending on education in order to balance the budget. They also had to decrease their spending during a time when the economy was suffering.