Public postsecondary institutions rely on state funding serving as one of the primary sources of funding for public two- and four-year institutions. States vary considerably in how they structure their budget processes and which metrics they prioritize in determining funding levels. This 50-State Comparison summarizes the key policy decisions state leaders make in funding higher education in their state, including: the state’s budget process; funding model; and which factors drive funding allocations, based on enrollment, staffing and facilities, and/or student performance.
The information has been collected from state statutes, state rules and regulations, state budget bills, and state postsecondary education board or agency policies. This resource does not include information related to setting tuition rates or student financial aid.
The 50-State Comparison was created in partnership with the National Center for Higher Education Management Systems (NCHEMS). For more information on funding levels in states, please see the State Higher Education Finance Report prepared annually by the State Higher Education Executive Officers Association.
50-State Comparisons
Click the items below to see data for all states:
- Budget Process.
- Funding Model.
- Enrollment Factors.
- Staffing and Facility Factors.
- Performance Factors.
- All Data Points for All States.
View a specific state’s approach by going to the state profiles page.
Key Takeaways
Budget Process: In many states, the postsecondary coordinating or governing board submits the budgetary request to the governor and state legislature rather than individual institutions submitting the request. This is the budget process in 44 states and the District of Columbia for 2-year institutions and 42 states and the District of Columbia for 4-year institutions.
Funding Model: States often use multiple approaches to determine funding levels for postsecondary institutions. These approaches may be based on historical funding levels (base plus), funding formulas, institutional requests or a combination of these methods. See the data point for definitions for each of the funding models.
- Multiple models: 23 states (2-year); 20 states (4-year).
- Base Plus: 6 states (2-year); 15 states (4-year).
- Funding Formula: 14 states (2-year); 6 states (4-year).
- Institutional Request: 7 states and the District of Columbia (2-year); 7 states and the District of Columbia (4-year).
Enrollment Factors: Most states factor in a measure of student enrollment, such as full-time equivalence, in the funding allocation to 2-year institutions (37 states) and 4-year institutions (29 states). States also factor in counts of specific student populations, such as students who are eligible to receive a Pell Grant.
Staffing and Facility Factors: States factor in a measure of staffing or facility needs, such as number of faculty or average compensation, in the funding allocation to 2-year institutions (21 states) and 4-year institutions (19 states).
Performance Factors: Most states factor in a performance measure, such as student completion, credential attainment or job placement, in the funding allocation to 2-year institutions (31 states) and 4-year institutions (29 states).
Related Resources
- 50-State Comparison: State Financial Aid Barriers for Students Impacted by the Justice System
- 50-State Comparison: K-12 Funding
- Paying for College: The Latest Trends in Performance-Based Funding
- 50-State Comparison: Need- and Merit-Based Financial Aid
- 50-State Comparison: Postsecondary Governance Structures
