Since the beginning of the Great Recession in 2008, enrollment in higher education has steadily increased. In general, as more people find themselves out of work, going back to school to advance their education becomes an increasingly attractive option.  Simultaneously, state governments facing budget deficits are having to make difficult cuts, including to the contribution to higher education. A new report from the State Higher Education Executive Officers Association (SHEEOA) shows that the impact of these two trends along with a general increase in the cost of providing higher education has resulted in the lowest level of state spending per student on higher education in the past 25 years.

In a modern economy, education is increasingly important to opportunities for employment and a liveable income. In January, the unemployment rate in the United States was almost 3 times higher for those without a high school diploma as it was for those with a bachelor’s degree. State contribution to higher education not only serves to make public universities competitive in terms of quality of education, it also subsidizes the cost to the student. Funds that are not provided by the state have to be made up with either less investment or an increase in tuition. According to the report, revenue from tuition and fees in 2012 totaled $59.9 billion, up from $41 billion in 2008. The chart below shows the percent change in public contribution by state.

Increasing the cost students face to achieve a higher education limits the opportunity to a more privileged population. Failure to attain advance education not only reduces the likelihood of employment, it can impact a person’s health and longevity as well. Because the majority of Americans get their health insurance through their employer, unemployment may make it more difficult to get quality health care. A decrease in income can also keep people from maintaining other health supportive assets like quality housing and nutritious food. Officials that make decisions to cut contribution to higher education may do be doing so without the knowledge of the impact it might have on their future health care budgets. For more information, follow CHN’s subsequent blog posts and issue briefs related to the Education and Health Initiative.