The Effect of State Appropriations on College Graduation Rates of Diverse Students
This report examines whether levels of state funding for higher education are associated with college graduation rates, particularly among underrepresented racial and ethnic groups. The assessment is based on an analysis of state appropriations and the six-year graduation rates of all students as well as the graduation rates of three subgroups, including Black, Latinx, and White students.
Using a six-year panel dataset of entering freshman cohorts at most public four-year institutions in the nation, the analyses show that graduation rates can be expected to change as a function of varying levels of state appropriations revenue within institutions.
Notably, the report did not examine how institutions specifically use appropriations revenue, which may also have a significant impact on student outcomes.
The analysis focused on the average effect of appropriations on graduation rates, the varying rate of impact by institutions, and the effects on historically Black Colleges and Universities and subsidy-reliant institutions.
