Baseline state funding forecasts for higher education derived from underlying measures of economic growth shows state spending on higher ed is being “crowded out” – falling from around 14 percent of state-sourced spending in the late 1980s to just over 12 percent today.

Part of a series of papers from The National Commission on Financing 21st Century Higher Education exploring different dimensions of higher education policy and funding. The series ultimately will include 10 papers. These first four papers focus on the outlook for states’ spending, transformations affecting higher education, lessons from other countries, and best practices in state finance policy.