Sixty-seven school finance reforms (SFRs), a combination of court-ordered and legislative reforms, have taken place since 1990; however, there is little empirical evidence on the heterogeneity of SFR effects. In this study, we estimate the effects of SFRs on revenues and expenditures between 1990 and 2014 for twenty-six states. We find that, on…

Previous studies have shown that state performance funding policies do not increase baccalaureate degree production, but higher education scholarship lacks a rigorous, quantitative analysis of the unintended consequences of performance funding. In this article, we use difference-in-differences estimation with fixed effects to evaluate performance…

Background/Context: Community colleges are central to the United States' college completion goals. A popular strategy pushed by a number of influential policy organizations and foundations is a policy of tying state funding to community college completions, otherwise known simply as performance funding. This is happening despite little to no…

Our fixed-effects panel data analysis of state spending on higher education fills a near void of studies examining capital expenditures on higher education. In our study, we found that political characteristics (e.g., interest group activity, organizational structure, and formal powers) largely account for differences between general fund and…

In this article, we explore how partisanship affects state higher education policy priorities and expenditures. We assume that party coalitions are heterogeneous and policy preferences/priorities differ via mediating factors. We find that Democratic Party strength positively affects state funding for higher education but that the effect diminishes…

This report shows the impact of various school funding measures on student outcomes measured by NAEP, ACT, and SAT scores, the four-year cohort graduation rate, and percent of the population ages 18-24 with at least a high school diploma. State-level data for the United States from 2005 through 2014 as available is utilized to establish the nature…

This article considers the role of higher education in state budgets. It empirically models and tests the balance wheel hypothesis in a robust framework. The balance wheel model posits that in good economic times, higher education is an attractive area for states to fund and tends to be funded at a higher rate than other state budget categories.…

For decades, state funding of public historically black colleges and universities (HBCU) has been shown to be de facto discriminatory relative to the funding of their predominately white counterparts. Although the dual system has been legally dismantled, the disparate funding has remained in place in a number of ways. For example, recent research…

In attempting to explain state support of public higher education, this study develops a theory-driven, comprehensive conceptualization of the state political system within a larger theoretical framework that consists of state economic and demographic factors and higher education system attributes. Furthermore, although the higher education policy…

This study examined the relationship between and among the changes in the level of institutional fundraising and changes in state funding at Maryland public 4-year institutions. As institutions have become more engaged in fundraising, the impact of private giving success on changes in state funding becomes more apparent in the context of increased…

The State Higher Education Finance (SHEF) report is produced annually by the State Higher Education Executive Officers (SHEEO) to broaden understanding of the context and consequences of multiple decisions made every year in each of these areas. No single report can provide definitive answers to such broad and fundamental questions of public…