State Funding Approaches for Public Colleges and Universities in the Midwest
Operating revenue for public higher education is derived from several sources, such as state appropriations, tuition, room and board, and contracts. State funding in particular constitutes a large share of revenue and is consequently critical for improving enrollment, completion, and labor market outcomes. However, states differ in how institutions are funded, and some approaches may be more effective than others.(1)
This report examines the ways in which 12 Midwestern states (2) provide operating funding for public colleges and universities. An overview of possible tradeoffs and outcomes research on these approaches is provided to help policymakers craft more effective funding formulas.
Key findings of the report focus on:
- Types of funding approaches
- Funding approaches in the Midwest
- Performance-based funding metrics
- Potential tradeoffs
- Outcomes research
