Panel regressions are used to analyze various measures of state higher education expenditures for 45 states over a time period from 1986 through 2005. Results of panel stationarity tests indicate that each expenditures series contains a unit root. This finding is consistent with the incremental theory of public expenditures and implies that time series of these variables should be differenced if used as dependent variables in regression models. Regression results indicate that changes in state higher education expenditures are significantly procyclical. State higher education spending appears to fully adjust to population growth and over-adjust to CPI inflation. Larger state governments are associated with significantly larger annual adjustments to per capita real state higher education expenditures. No significant evidence is found that state Medicaid or elementary education expenditures crowd out higher education spending.

No description available.

This study examined changes in funding and expenditures for the forty-seven public community college districts in Texas from 1974 through 1983. Expenditures data were subdivided into three parts: state reimbursable operating costs, nonreimbursable operating costs, and the cost of bonded indebtedness. Data on income for operations were aggregated in four parts: state appropriations, tuition and fees, local property taxes, and miscellaneous funds. For the purpose of determining differences in expenditure and income trends by institutional size, each of the forty-seven public community college districts was categorized as small, medium, or large in size. The findings indicate that for the period of the study some changes occurred in both expenditures and funding. In the area of expenditures, nonreimbursable operating costs increased as a proportion of total expenditures while the proportionate cost of bonded indebtedness declined. Small colleges experienced the largest increase in nonreimbursable costs, diminishing the dollars available for instructional costs.