Over the past 30 years the costs of higher education have climbed faster than the rate the inflation. As these costs have risen, state appropriations for public institutions have not kept pace. While not declining in real dollars, as a portion of meeting the expenses of funding public higher education, state appropriations have been steadily falling over the past three decades. Not surprisingly, during this period tuition at public colleges and universities has risen dramatically, leading to concerns about access to higher education, in particular for students of low income backgrounds.The literature contains many studies highlighting the increasing costs and tuition charged by public colleges and universities. Little has been written about the specific relationship between the level of state appropriations at a particular institution and the pricing and financial aid policies it then adopts. By analyzing the data for public institutions in the Integrated Postsecondary Educational Data System (IPEDS) as well as data for specific students in the National Postsecondary Student Aid Survey (NPSAS) for five school years spanning 1989-1990 to 2003-2004, this study conducts a quantitative analysis to create a predictive model capable of forecasting the impact of changes in state appropriation on institution pricing and financial aid policy. In an environment where the continued decline of state appropriations as a portion of meeting educational costs is a real possibility, such forecasting ability may prove invaluable in crafting policies to insure access to higher education for certain student populations.

Public higher education has evolved over time under the control of each individual state. The public system in each state is made up of distinctive types of institutions that together provide higher education in different formats. Public institutions may largely be classified into three groups based on the level of education provided including community colleges, regional institutions, and research universities. While the institutions employed are largely the same in each state, the extent to which each is utilized and the support given reflect the individual characteristics of the state. This dissertation examines appropriations and enrollments by state and year in three classifications of universities: research universities, regional universities, and community colleges. The appropriations and enrollments in regional and community settings are measured relative to the same for research universities. The explanatory variables are political, economic, and demographic variables relevant in state finance to the allocation of state budgets. There are three empirical chapters. The first uses Granger causality concepts to examine whether appropriations and enrollment have strong predictive effects on each other in the following year. Enrollment has no such effect on appropriations, while there is a weak effect the other way. The second chapter studies relative appropriations, finding that the proportion of appropriations allocated to regional institutions has remained consistent, while states have proportionally shifted toward community colleges. The third chapter studies enrollment, which is very stable for regional universities and has shifted toward community colleges relative to research universities. Again, political and economic factors are somewhat different in these models. Examining year effects net of economics and politics, there are no such effects on appropriations; but for enrollment, regional universities grew somewhat relative to research universities in the earlier years (1986 to 1993), and community colleges grew throughout the period with pauses. The Great Recession is clearly visible in community college enrollments, growing as usual during an economic downturn.

Amid declining state funding, do public universities seek alternative revenue streams to keep tuition and fees down? Is such diversification only a public university phenomenon? If both private and public schools are seeking new sources of revenue, then state appropriations may not be the impetus. Instead, institutional characteristics may have a greater influence. In addition, would those higher education institutions (HEIs) with a greater propensity to generate alternative revenue have a greater rate of survival? I examine HEIs by sector using the Integrated Postsecondary Education Data System (IPEDS) from fiscal years 2003–2004 through 2016–2017 and provide future researchers with guidance on its use. Controlling for different states’ policies, politics, and fiscal health, I find that institutional characteristics influence certain HEIs to seek alternative revenue streams and that these characteristics often strengthen the relationship between state appropriations and alternative revenue sources. Furthermore, the findings suggest that generating alternative revenue, as I define it, may play a role in the survival of HEIs. / Business Administration/Accounting

The purpose of this study was twofold. The first purpose was to determine the extent to which the 14 two-year institutions of the Tennessee Board of Regents system expended funds in functional categories equal to the amount of funds provided by the appropriations funding formula for the same functional categories. The second purpose was to determine the extent to which the 14 two-year institutions expended funds for direct instructional purposes for each academic program equal to the amount of funds provided by the appropriations funding formula for direct teaching purposes for each academic program. Using an archival research design, appropriations funding data and actual expenditure data were collected for the period 1990-91 through 1996-97 relative to the first purpose. Data for only the years 1995-96 and 1996-97 were used for the second purpose. For each of the two purposes studied, the data were adjusted to reflect comparable funding and expenditure data. The final evaluation involved a comparison of the percentage of funding expended by function and by college for the first purpose and the percentage of funding expended by academic program and by college for the second purpose. The evaluation of the percentage of funding expended by function revealed that most colleges and the system as a whole expended approximately 90% or more of the funding for the function for which funds were allocated by the appropriations formula. This level was determined to be positive, because some funding is typically set aside for transfers to plant funds for renewals and replacements. The evaluation of the percentage of funding expended for direct teaching purposes revealed that most colleges and the system as a whole expended approximately 60% or less of the funding for direct teaching purposes. This is permissible according to the policies of the TBR and THEC. The funding formula for direct teaching is based on enrollment and an average full-time faculty salary amount. However, most colleges use part-time faculty to teach a portion of its student-credit-hours; thus, excess funds accrue from this area and are available for use in other areas. Based on the findings of this study, two recommendations are offered. A review of the funding formula with regards to potentially needed modifications is recommended for the specific functions in which either substantially more or less than 100.0% of the funding was expended. Additionally, a formal analysis of the proportion of student-credit-hour enrollment taught by part-time faculty should be made to assist in determining if the funding formula calculation for direct teaching activities should include an element for the proportion of student-credit-hours taught by part-time faculty.

No description available.