As shown in the map below, almost all states are providing less in funds per student to their public colleges and universities than they did in 2008, adjusted for inflation. And the cuts are substantial. The median state cut in spending – remember, this is during the seven years of the recovery — has been 22 percent per student since 2008. Only one state—North Dakota, which is enjoying a steady increase in tax revenue due to its energy boom—has substantially increased spending.
Time will tell whether these shifts in state budget priorities are permanent. For now, it appears that to make ends meet, state institutions of higher ed will need to continue to look for other sources of revenue—or cut spending.