scholarly journals Supplement or Supplant? Estimating the Impact of State Lottery Earmarks on Higher Education Funding

2020 ◽  
Vol 15 (1) ◽  
pp. 136-163
Author(s):  
Elizabeth Bell ◽  
Wesley Wehde ◽  
Madeleine Stucky
Keyword(s):  
Higher Education ◽  
Financial Aid ◽  
State Funding ◽  
State Appropriations ◽  
Higher Education Funding ◽  
Difference In Differences ◽  
Alternative Funding ◽  
Funding Mechanism ◽  
Percent Increase ◽  
The Impact

In the wake of declining state support for higher education, many state leaders have adopted lottery earmark policies, which designate lottery revenue to higher education budgets as an alternative funding mechanism. However, despite the ubiquity of lottery earmarks for higher education, it remains unclear whether this new source of revenue serves to supplement or supplant state funding for higher education. In this paper, we use a difference-in-differences design for the years 1990–2009 to estimate the impact on state appropriations and state financial aid levels of designating lottery earmark funding to higher education. Main findings indicate that lottery earmark policies are associated with a 5 percent increase in higher education appropriations, and a 135 percent increase in merit-based financial aid. However, lottery earmarks are also associated with a decrease in need-based financial aid of approximately 12 percent. These findings have serious distributional implications that should be considered when state lawmakers adopt lottery earmark policies for higher education.

Student selectivity and higher education institutions credit ratings

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Aron Gottesman ◽  
Iuliana Ismailescu
Keyword(s):  
Higher Education ◽  
Private Universities ◽  
Public University ◽  
State Funding ◽  
State Appropriations ◽  
Content Type ◽  
Credit Quality ◽  
The Impact ◽  
The Given

Purpose This paper aims to investigate the relation between the creditworthiness of US institutions of higher education and their student selectivity (i.e. demand and quality). Design/methodology/approach The authors study whether the impact of student selectivity differs across public vs private universities; across the credit quality of the given public university’s state; and across the level of state appropriations for the given public university. Findings The authors find that student quality and demand measures are significantly associated with their corresponding institution’s creditworthiness, especially for private universities. Originality/value For public universities the association is weak and, contrary to the expectations, does not depend on the state credit quality or level of state funding. The findings are robust to the inclusion of control variables.

Patterns and Volatility in State Funding for Higher Education, 1951–2006

2018 ◽  
Vol 120 (6) ◽  
pp. 1-42 ◽  
Author(s):  
Jennifer A. Delaney ◽  
William R. Doyle
Keyword(s):  
Higher Education ◽  
Past Research ◽  
State Funding ◽  
Higher Education Funding ◽  
State Budget ◽  
State Budgets ◽  
Higher Education Leaders ◽  
Using Data ◽  
The Relationship ◽  
Over Time

Background Numerous studies have addressed the determinants of higher education appropriations. Extending prior studies that only consider the relationship between higher education and one other state budget category, Delaney and Doyle develop and test an empirical model of the relationship between higher education and all other budget categories. Delaney and Doyle propose that higher education takes the form of a balance wheel in state budgets. They find that higher education is cut more than other budget categories in bad budget years and given larger increases in good budget years. Although previous work advances understanding of how states budget for higher education, it is limited in the length of time considered. Purpose This study makes two important contributions to the literature. First, it documents changes in the amount of volatility in state funding for higher education. Second, it identifies patterns in the volatility, and does so over a longer time period than has been investigated in past research, using data that spans over a half century (1951–2006). Research Design This study uses a unique panel dataset spanning the period from 1951 to 2006 to quantitatively document changes in the extent of volatility in state funding for higher education. It also identifies and tests for patterns of volatility. Findings We find that the level of volatility in state budgeting for higher education has changed over time. We also find evidence of linear (incremental), quadratic (countercyclical), and cubic (balance wheel) patterns of volatility at different points in time. Recommendations Our findings indicate that the role of higher education in state budgets is not static and has varied over time. In policy discussions about higher education funding, we think it is important to consider both absolute funding levels and the amount of volatility in funding. We recommend that higher education leaders discuss not only funding levels with their state legislatures, but also discuss volatility in funding patterns. States and higher education have operated under different funding relationships in the past; therefore, it seems possible that policymakers and higher education officials could change their current funding relationship to conform to a pattern that better serves the needs of the state, institutions, and students.

scholarly journals Higher Education Funding and Economic Growth: Empirical Evidence from Croatia

2020 ◽  
Vol 67 (3) ◽  
pp. 409-421
Author(s):  
Maja Nikšić Radić ◽  
Hana Paleka
Keyword(s):  
Higher Education ◽  
Economic Growth ◽  
Structure Model ◽  
Higher Education Funding ◽  
Causality Test ◽  
Economic Growth And Development ◽  
Social And Economic Development ◽  
Sustainable Economic Growth ◽  
The Impact ◽  
Growth Hypothesis

Deprived of investment in education, no country can expect sustainable economic growth and development. Higher education is particularly a priceless tool in today's era of globalization that requires continuous education to keep up with new knowledge. According to UNESCO (2014), higher education is no longer a luxury; it is essential to national, social and economic development. The impact of education on economic growth is possible to observe within the so-called ‘education led growth hypothesis’. The main aim of this paper it to analyse the higher education size and structure, model and financing sources in Croatia and to test the ‘education led growth hypothesis’ on the example of Croatia. The study will apply the Granger causality test to evaluate if there is any causal relationship between investment in higher education and economic growth in Croatia.

scholarly journals The impact of impact

2010 ◽  
Vol 32 (3) ◽  
pp. 46-48
Author(s):  
Rebecca Smith
Keyword(s):  
Higher Education ◽  
Research Funding ◽  
Education Funding ◽  
Higher Education Funding ◽  
Related Research ◽  
The Impact ◽  
Funding Council

The proposed introduction of impact into research funding assessments has been controversial. The current proposals for the new quality-related research (QR) framework contribute to a very tense environment which also includes looming cuts to higher education budgets. There are widespread concerns about how the Higher Education Funding Council for England (HEFCE) will allocate the resulting budget.

Government Expenditures on Higher Education and Innovativeness

2020 ◽  
pp. 287-316
Author(s):  
Marko Slavković ◽  
Marijana Simić
Keyword(s):  
Higher Education ◽  
Regression Analysis ◽  
Higher Education Funding ◽  
Key Factors ◽  
Education Expenditure ◽  
Knowledge Based ◽  
Current Trends ◽  
Knowledge Based Economy ◽  
Impact Of Higher Education ◽  
The Impact

Current trends such as globalization and the growing importance of intangible assets and a knowledge-based economy makes a significant contribution to highlighting the importance of higher education funding. Classified as one of the key factors determining the level of innovation and competitiveness, both at the micro and macro levels, education and especially higher education have been funded in different ways in different countries. Therefore, the main objective of the research is to determine the impact of higher education expenditure on innovation in Serbia and Slovenia, on the basis of which a comparison of results can be made. Analyzing the data for the period 2007-2016 and based on the results of the regression analysis, we conclude that there is a negative significant impact of the share of the state allocation for higher education on the level of innovation in Serbia, while the results relating to the situation in Slovenia are contrary and indicate a positive significant impact.

The Financial Benefits and Burdens of Performance Funding in Higher Education

2019 ◽  
Vol 41 (2) ◽  
pp. 189-213 ◽  
Author(s):  
Lori Prince Hagood
Keyword(s):  
Higher Education ◽  
Policy Design ◽  
Performance Funding ◽  
State Appropriations ◽  
Heterogeneous Treatment Effects ◽  
High Resource ◽  
Financial Benefits ◽  
Degree Production ◽  
Financial Burdens ◽  
The Impact

Performance funding in higher education is intended to incentivize increased degree production at American colleges and universities by linking state funds directly to institutional outcomes. However, many critics suggest that such funding arrangements create systems of “winners and losers” by rewarding some institutions over others. Using a difference-in-difference methodology, this article explores the impact of performance funding on state appropriations and investigates the heterogeneous treatment effects across institution types. I find that performance funding consistently benefits high-resource institutions and imposes financial burdens on low-resource institutions. The theory of social construction and policy design illuminates the findings.

The Impact of Financial-Aid Format on Students' Collegiate Financing Decisions

2019 ◽  
Vol 30 (1) ◽  
pp. 27-43 ◽  
Author(s):  
Mackenzie M. Festa ◽  
D. Kip Holderness ◽  
A. A. Neidermeyer ◽  
Presha E. Neidermeyer
Keyword(s):  
Higher Education ◽  
Interest Rates ◽  
Financial Aid ◽  
Decision Aid ◽  
Student Loan ◽  
Public University ◽  
Student Loan Debt ◽  
Financing Decisions ◽  
Financial Counseling ◽  
The Impact

This study explored how an alternative presentation of loan information affects financial-aid decisions among students (n = 204) at a large public university. Building from decision-aid literature and using an experimental design, we found that when financial-aid forms were formatted in a way that makes interest rates more accessible and salient, students tended to: (a) accept fewer high-cost private loans and (b) work more during the college years. Results indicate that minor revisions in financial-aid documentation can have a significant impact on students' financial-aid choices. Those working in the fields of higher education and financial counseling and planning can use this information to further educate borrowers prior to the encumbrance of student loan debt.

scholarly journals Student Loans as a Pressure on U.S. Higher Education

2016 ◽  
Author(s):  
Elizabeth Popp Berman ◽  
Abby Stivers
Keyword(s):  
Higher Education ◽  
Financial Aid ◽  
Organization Theory ◽  
Management Practices ◽  
Student Loans ◽  
The United States ◽  
State Funding ◽  
Student Aid ◽  
For Profit ◽  
Financial Aid Policy

The United States has been at the forefront of a global shift away from direct state funding of higher education and toward student loans, and student debt has become an issue of growing social concern. Why did student loans expand so much in the U.S. in the 1990s and 2000s? And how does organization theory suggest their expansion, and the growth of federal student aid more generally, might affect higher education as a field? In the 1960s and 70s, policy actors worked to solve what was then a central problem around student loans: banks' disinterest in lending to students. They did this so well that by 1990, a new field of financial aid policy emerged, in which all major actors had an interest in expanding loans. This, along with a favorable environment outside the field, set the stage for two decades of rapid growth. Organization theory suggests two likely consequences of this expansion of federal student loans and financial aid more generally. First, while (public) colleges have become less dependent on state governments and more dependent on tuition, the expansion of aid means colleges are simultaneously becoming more dependent on the federal government, which should make them more susceptible to federal demands for accountability. Second, the expansion of federal student aid should encourage the spread of forms and practices grounded in a logic focused on students' financial value to the organization, such as publicly traded for-profit colleges and enrollment management practices.

Flipping burgers or flipping pages? Student employment and academic attainment in post-Soviet Latvia

2007 ◽  
Vol 40 (4) ◽  
pp. 477-491 ◽  
Author(s):  
Daunis Auers ◽  
Toms Rostoks ◽  
Kenneth Smith
Keyword(s):  
Higher Education ◽  
Financial Aid ◽  
School Performance ◽  
Negative Impact ◽  
Independent Study ◽  
Student Employment ◽  
Science Students ◽  
Significant Negative Impact ◽  
The Impact ◽  
Reduced Time

Latvian higher education has undergone a dramatic transition since 1991. This study employs a survey of nearly 1000 social science students studying in 13 different institutions in Latvia to consider the impact of the increase in the number of students who are working while studying. Evidence indicates employment has a strong and significant negative impact on school performance, and the negative impact increases as weekly hours worked increase. This manifests itself through reduced class attendance and reduced time spent in independent study. Finally, we find that the probability of student employment is most significantly affected by the availability of financial aid, gender, ethnicity, and age.

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