The coronavirus pandemic is already taking its toll on state budgets. Potential cuts to higher education funding are particularly concerning because prior to the outbreak, most states had not yet recovered to their pre-Great Recession funding levels for higher ed.
At least 12 states are already looking to cut their higher education budgets, according to Open Campus Media. Inside Higher Education extensively covered cuts coming to Missouri and New York. Unfortunately, these states already contemplating cuts are likely just the beginning.
The National Governor’s Association asked Congress for an additional $500 billion in funding to help balance state budgets. (States are constitutionally required to have balanced budgets.) Given the expectation of plummeting tax revenue in much of the country, states will need to reduce their budgets for next year unless the federal government steps in with enough support. Higher education is a top target for cuts in many states because it is an area where the state has complete control: the state doesn’t have matching funds from a federal program or other requirements it must meet in terms of maintaining the funds.
Higher education experienced deep cuts a decade ago during the Great Recession. In 2017, the Center on Budget and Policy Priorities found that, when adjusted for inflation, state funding for two- and four-year public institutions was still $9 billion less than in 2008.
As a result of the last recession and the cuts that came with it, many public colleges and universities increased tuition to at least partially make up for the decrease in state funding. It would be risky for institutions to increase tuition again, given the number of families whose ability to pay will be diminished due to a job loss caused by the coronavirus pandemic. Institutions, which collectively received $14.25 billion in the coronavirus relief bill known as the CARES Act, are asking Congress for an additional $47 billion in support.
NCAN has called on Congress to invest more into the Educational Stabilization Fund established in the CARES Act. This fund provides dollars for institutions as well as creates a Governor's Emergency Education Relief Fund. Governors have complete discretion over how they spend this money, and NCAN asks them to consider the needs of higher education along with those of K-12.
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