FY 2021

The State Higher Education Executive Officers Association (SHEEO) serves the executives ofstatewide governing, policy, and coordinating boards of postsecondary education and theirstaffs. Founded in 1954, SHEEO promotes an environment that values higher education and its
role in ensuring the equitable education of all Americans, regardless of race/ethnicity, gender,or socioeconomic factors. Together with its members, SHEEO aims to achieve this vision byequipping state higher education executive officers and their staffs with the tools to effectively
advance the value of higher education, promoting public policies and academic practices thatenable all Americans to achieve success in the 21st century, and serving as an advocate for statehigher education leadership. For more information, visit sheeo.org.
© 2022 State Higher Education Executive Officers Association

SHEEO: STATE HIGHER EDUCATION FINANCE: FY 20212

Since 2003, the State Higher Education Executive Officers Association (SHEEO) has produced
the annual State Higher Education Finance (SHEF) report to broaden understanding and enable
analysis of state-level and national funding and enrollment trends over time. The SHEF reportprovides the earliest possible review of state funding for higher education for the most recently
completed fiscal year. SHEEO developed the SHEF report building directly on a 25-year effort
by Kent Halstead, an analyst and scholar of state policy for higher education. As a result, SHEF
includes a robust dataset for fiscal years 1980-2021 with detailed data on state and local funding,tuition revenue, and enrollment.
The 2021 SHEF report was authored by Sophia Laderman, associate vice president, and Kelsey
Kunkle, policy analyst. The report would not have been possible without additional support,
particularly from Gloria Auer, Kelsey Heckert, Annahita Jimmerson, and David Tandberg.
We are deeply indebted to the staff of state higher education agencies who annually provide thestate- and sector-level data essential for the preparation of this report and made the additional
commitment to provide several new data elements this year. Without their diligent work, thisproject would not be possible.
A fully interactive version of this report, with adjustable visualizations and downloadable
datasets for all figures and tables, is available at shef.sheeo.org. The State Effort and Capacity to
Fund Higher Education report, which was separated from the main SHEF report last year, can befound online at shef.sheeo.org/state-effort.
The data in the SHEF report and accompanying website may be freely used with appropriate
attribution and citation: State Higher Education Executive Officers Association. (2022). State Higher
Education Finance: FY 2021.

SHEEO: STATE HIGHER EDUCATION FINANCE: FY 2021

3

TABLE OF CONTENTSINDEX OF FIGURES................................................................................................................................... 5
INDEX OF TABLES..................................................................................................................................... 6
EXECUTIVE SUMMARY..............................................................................................................................7
REPORT HIGHLIGHTS...........................................................................................................................................7
IMPLICATIONS.......................................................................................................................................................12
SOURCES AND USES OF STATE FUNDING........................................................................................... 13
SOURCES OF STATE FUNDING........................................................................................................................ 13
USES OF STATE FUNDING..................................................................................................................................16
DISTRIBUTION OF REVENUE: WAVE CHARTS AND STUDENT SHARE............................................. 20
OVERVIEW: TRENDS OVER TIME.....................................................................................................................20
EDUCATION APPROPRIATIONS AND TUITION REVENUE....................................................................... 25
FINANCIAL AID PERCENTAGE OF EDUCATION APPROPRIATIONS........................................................31
STUDENT SHARE................................................................................................................................................. 33
STATE FUNDING AND ENROLLMENT................................................................................................... 35
STUDENT ENROLLMENT................................................................................................................................... 35
EDUCATION APPROPRIATIONS.......................................................................................................................41
STATE PUBLIC FINANCIAL AID.........................................................................................................................50
FINANCIAL AID PERCENTAGE OF EDUCATION APPROPRIATIONS....................................................... 56
NET TUITION AND TOTAL EDUCATION REVENUE............................................................................. 58
NET TUITION REVENUE.................................................................................................................................... 58
TOTAL EDUCATION REVENUE.........................................................................................................................64
STUDENT SHARE................................................................................................................................................. 70
IMPLICATIONS........................................................................................................................................ 75

SHEEO: STATE HIGHER EDUCATION FINANCE: FY 2021

4

INDEX OF FIGURES
1.1

DISTRIBUTION OF STATE AND LOCAL HIGHER EDUCATION FUNDING SOURCES, U.S.,FY 2006-2021................................................................................................................................................................15

1.3

DISTRIBUTION OF STATE AND LOCAL HIGHER EDUCATION FUNDING USES, U.S.,FY 2006-2021................................................................................................................................................................18

2.1

PUBLIC FTE ENROLLMENT, EDUCATION APPROPRIATIONS PER FTE, AND NET TUITIONREVENUE PER FTE, U.S., FY 1996-2021 (CONSTANT DOLLARS)................................................................... 27

2.2

CUMULATIVE ANNUAL PERCENT CHANGE IN PUBLIC EDUCATION APPROPRIATIONSPER FTE FOLLOWING ECONOMIC RECESSIONS, U.S., FY 1980-2021 (CONSTANT DOLLARS).......... 28

2.3

EDUCATION APPROPRIATIONS AND NET TUITION REVENUE PER FTE BY STATE,FY 2021 (ADJUSTED)................................................................................................................................................. 29

2.4

PUBLIC EDUCATION APPROPRIATIONS AND NET TUITION REVENUE PER FTE BY SECTOR,
U.S., FY 2019-2021 (CONSTANT DOLLARS).........................................................................................................31

2.5

PUBLIC HIGHER EDUCATION STATE FINANCIAL AID PER FTE AND AS A PERCENTOF EDUCATION APPROPRIATIONS, U.S., FY 2001-2021 (CONSTANT DOLLARS)................................... 32

2.6

NET TUITION AS A PERCENT OF TOTAL EDUCATION REVENUE, U.S., FY 1980-2021........................... 34

3.1

PUBLIC HIGHER EDUCATION FULL-TIME EQUIVALENT (FTE) ENROLLMENT BY STATE,FY 2021.......................................................................................................................................................................... 36

3.1A

PERCENT OF PUBLIC HIGHER EDUCATION FULL-TIME EQUIVALENT (FTE) ENROLLMENT
ATTENDING TWO-YEAR INSTITUTIONS BY STATE, FY 2021......................................................................... 39

3.2

PUBLIC HIGHER EDUCATION APPROPRIATIONS PER FTE BY STATE, FY 2021 (ADJUSTED)............... 43

3.2A PERCENT DIFFERENCE IN TWO-YEAR AND FOUR-YEAR PUBLIC HIGHER EDUCATIONAPPROPRIATIONS PER FTE BY STATE, FY 2021.................................................................................................. 47
3.3

PUBLIC HIGHER EDUCATION STATE FINANCIAL AID PER FTE BY STATE, FY 2021 (ADJUSTED).........51

3.3A

PERCENT DIFFERENCE IN TWO-YEAR AND FOUR-YEAR PUBLIC HIGHER EDUCATIONSTATE FINANCIAL AID PER FTE BY STATE, FY 2021........................................................................................... 54

3.4

PUBLIC HIGHER EDUCATION STATE FINANCIAL AID AS A PERCENT OF EDUCATIONAPPROPRIATIONS BY STATE, FY 2021................................................................................................................... 56

3.4A DIFFERENCE IN TWO-YEAR AND FOUR-YEAR STATE FINANCIAL AID AS A PERCENTOF EDUCATION APPROPRIATIONS BY STATE, FY 2021................................................................................... 57
4.1

PUBLIC HIGHER EDUCATION NET TUITION REVENUE PER FTE BY STATE,FY 2021 (ADJUSTED)................................................................................................................................................. 59

4.1A

PERCENT DIFFERENCE IN TWO-YEAR AND FOUR-YEAR PUBLIC HIGHER EDUCATION
NET TUITION REVENUE PER FTE BY STATE, FY 2021....................................................................................... 62

4.2

PUBLIC HIGHER EDUCATION TOTAL EDUCATION REVENUE PER FTE BY STATE,FY 2021 (ADJUSTED)................................................................................................................................................. 65

4.2A PERCENT DIFFERENCE IN TWO-YEAR AND FOUR-YEAR PUBLIC HIGHER EDUCATIONTOTAL EDUCATION REVENUE PER FTE BY STATE, FY 2021...........................................................................68
4.3

NET TUITION AS A PERCENT OF TOTAL EDUCATION REVENUE BY STATE, FY 2021............................. 72

4.3A DIFFERENCE IN TWO-YEAR AND FOUR-YEAR NET TUITION AS A PERCENT OF TOTALEDUCATION REVENUE BY STATE, FY 2021.......................................................................................................... 73

SHEEO: STATE HIGHER EDUCATION FINANCE: FY 2021

5

INDEX OF TABLES
1.1

SOURCES OF STATE AND LOCAL HIGHER EDUCATION FUNDING IN THE U.S.,FY 2006-2021 (UNADJUSTED DOLLARS, IN MILLIONS)..................................................................................14

1.3

USES OF STATE AND LOCAL HIGHER EDUCATION FUNDING IN THE U.S.,FY 2006-2021 (UNADJUSTED DOLLARS, IN MILLIONS)..................................................................................17

2.1

IMPACT OF INFLATION AND ENROLLMENT ON SHEF METRICS, U.S., FY 1980-2021........................... 22

2.1A

IMPACT OF INFLATION AND ENROLLMENT ON SHEF METRICS BY SECTOR, U.S.,FY 2019-2021............................................................................................................................................................... 24

3.1

PUBLIC HIGHER EDUCATION FULL-TIME EQUIVALENT (FTE) ENROLLMENT BY STATE,FY 1980-2021............................................................................................................................................................... 37

3.1A

PUBLIC HIGHER EDUCATION FULL-TIME EQUIVALENT (FTE) ENROLLMENT BY SECTOR
AND STATE, FY 2019-2021........................................................................................................................................40

3.2

PUBLIC HIGHER EDUCATION APPROPRIATIONS PER FTE BY STATE,FY 1980-2021 (CONSTANT ADJUSTED DOLLARS)...........................................................................................44

3.2A PUBLIC HIGHER EDUCATION APPROPRIATIONS PER FTE BY SECTOR AND STATE,FY 2019-2021 (CONSTANT ADJUSTED DOLLARS)...........................................................................................48
3.2B COMPONENTS OF PUBLIC HIGHER EDUCATION APPROPRIATIONS PER FTE BY SECTOR
AND STATE, FY 2021 (ADJUSTED).......................................................................................................................... 49
3.3

PUBLIC HIGHER EDUCATION STATE FINANCIAL AID PER FTE BY STATE,FY 2001-2021 (CONSTANT ADJUSTED DOLLARS)........................................................................................... 52

3.3A

PUBLIC HIGHER EDUCATION STATE FINANCIAL AID PER FTE BY SECTOR AND STATE,FY 2019-2021 (CONSTANT ADJUSTED DOLLARS)........................................................................................... 55

4.1

PUBLIC HIGHER EDUCATION NET TUITION REVENUE PER FTE BY STATE,FY 1980-2021 (CONSTANT ADJUSTED DOLLARS)...........................................................................................60

4.1A

PUBLIC HIGHER EDUCATION NET TUITION REVENUE PER FTE BY SECTOR AND STATE,FY 2019-2021 (CONSTANT ADJUSTED DOLLARS)........................................................................................... 63

4.2

PUBLIC HIGHER EDUCATION TOTAL EDUCATION REVENUE PER FTE BY STATE,FY 1980-2021 (CONSTANT ADJUSTED DOLLARS)...........................................................................................66

4.2A PUBLIC HIGHER EDUCATION TOTAL EDUCATION REVENUE PER FTE BY SECTOR
AND STATE, FY 2019-2021 (CONSTANT ADJUSTED DOLLARS)................................................................... 69
4.3

NET TUITION AS A PERCENT OF TOTAL EDUCATION REVENUE BY STATE, FY 1980-2021..................71

4.3A NET TUITION AS A PERCENT OF TOTAL EDUCATION REVENUE BY SECTOR AND STATE,FY 2019-2021................................................................................................................................................................74

SHEEO: STATE HIGHER EDUCATION FINANCE: FY 2021

6

EXECUTIVE SUMMARYThe State Higher Education Finance (SHEF) report is produced annually by the State Higher
Education Executive Officers Association (SHEEO) to broaden understanding of the context andconsequences of public policy decisions in each state that contribute to public higher education
funding levels and funding distributions across states and nationally.
The SHEF report supplies important context and trend analysis to help inform state postsecondary
finance policy decisions. SHEF provides the earliest possible review of state and local support,
tuition revenue, and enrollment trends for the most recently completed fiscal year. This year’s reportfocuses on fiscal year 2021, which for most states ran from July 1, 2020, through June 30, 2021.
A fully interactive version of this report is available on our website (shef.sheeo.org), including
data downloads, visualization tools, and technical documentation.

REPORT HIGHLIGHTSState and local funding for all higher education totaled $113.2 billion in fiscal year 2021, including$3.7 billion in federal stimulus funding (3.2%). All but five states (Alabama, Nevada, New York,
Oklahoma, and West Virginia) used some portion of federal stimulus funding provided to state
governments for higher education.1 Five states (Colorado, Minnesota, New Hampshire, Vermont,and Wyoming) and Washington, D.C., relied on federal stimulus funding for more than 20% of
higher education support. State tax and non-tax appropriations accounted for 85.2% of state andlocal funding, with local tax appropriations in 32 states contributing 10.7%. The vast majority ofstate and local support for higher education was used for general operations at public institutions(78.1%). Just over 10.1% of funding went to research, agricultural extension programs, and medical
schools. Another 8.9% was allocated for student financial aid at public institutions. Less than 2.5%of all state and local funding supported independent (private) institutions, and most of those funds
went to student financial aid (2.2%).

FULL-TIME EQUIVALENT (FTE) ENROLLMENT
Full-time equivalent (FTE) enrollment converts student credit hours to fulltime academic year students. Net FTE excludes medical students.
• There were 10.6 million FTE enrolled students in 2021. Net FTE
enrollment declined 3.0% this year, a loss of 323,952 FTE students,
the largest FTE decline on record. 2021 marks the tenth straightyear of enrollment declines following substantial enrollment
increases during the Great Recession.
• Forty-seven states and Washington, D.C., saw FTE enrollment
declines this year, more than in any previous year. Sixteen statesand Washington, D.C., had enrollment declines greater than 5.0%,
and only three states (Delaware, Illinois, and Utah) had an FTE
enrollment increase from 2020 to 2021.

1.

Federal stimulus funding is included in state-level education appropriations and total education revenue throughout this report.

SHEEO: STATE HIGHER EDUCATION FINANCE: FY 2021

7• The recent enrollment decline is concentrated at two-year
public institutions, which reported a net FTE enrollment declineof 6.1% from 2020 to 2021, compared to only 0.9% at four-year
institutions. Two-year enrollment took a larger hit than four-year
enrollment in 43 states.

EDUCATION APPROPRIATIONS PER FTE
Education appropriations measure state and local support for public
higher education operating expenses and exclude research, hospitals, andmedical education. State-level education appropriations include agency
funding and federal stimulus funding; sector-level appropriations do not.
The U.S. entered a short recession in fiscal year 2020 due to the COVID-19 pandemic. In all
previous recessions since 1980, education appropriations per FTE declined in the year following
an economic recession. For the first time in 2021, this trend did not continue: Inflation-adjusted
education appropriations per FTE increased 4.5% in the last year ($400 per FTE), reaching $9,327.
This was the ninth straight year of increases and the largest single-year increase since 2014.
Appropriations increased in 40 states and Washington, D.C., from 2020 to 2021. The increase ineducation appropriations per FTE can be attributed to three notable trends:
1. Increasing state commitments to higher education funding.
2. A sharp decline in FTE enrollment.
3. Generous federal stimulus funding.
Federal stimulus funding contributed to the increase in two ways. First, federal funds that
protected state revenues and covered additional costs due to the COVID-19 pandemic andeconomic recession reduced the need to redirect funds from higher education to other budget
areas during the pandemic. Second, federal funds given to states and used for higher education
operations boosted operating education appropriations: In 2020, federal stimulus funding for
public institutions accounted for 1.3% of total education appropriations ($113 per FTE). In 2021,
this amount increased to 3.6% ($335 per FTE). Two-year institutions received $214 per FTE infederal stimulus for public operating in 2021, and four-year institutions received $288 per FTE.
Without federal stimulus funding directed by states to higher education, education appropriations
per FTE would have increased just 2.0% from 2020 to 2021. Had FTE enrollment held constant andhad states not directed federal stimulus funding toward higher education, education appropriations
would have declined 1.0% this year.
In 2021, education appropriations per FTE ranged from $4,370 in New Hampshire to $34,466
in Washington, D.C. In 2021, three states and Washington, D.C., allocated more than $3,000 per
FTE in federal stimulus funding to public higher education: Washington, D.C. ($10,853), Wyoming($6,355), Minnesota ($3,140), and Vermont ($3,077). When excluding federal stimulus funding, 10
states had declines in inflation-adjusted education appropriations per FTE in the two-year sector
and 27 states had declines in the four-year sector. Additionally, without federal stimulus, somestates’ increases or decreases in education appropriations per FTE reversed direction, or wereoverall less impactful. The largest differences were in Vermont (98.6% increase with stimulus vs.
44.6% without) and Colorado (7.8% increase vs. 37.6% decline).

SHEEO: STATE HIGHER EDUCATION FINANCE: FY 2021

8

The impacts of previous recessions on higher education funding can still be felt in most states.
Education appropriations per FTE have increased for nine consecutive years, but these increases
have not been large enough to reach pre-recession funding levels of 2001 and 2008. Notably,
education appropriations per FTE in 2021 exceeded funding levels in the years between 2003 and2007. Yet national-level education appropriations remain 1.2% ($112 per FTE) and 10.2% ($1,059)
below 2008 and 2001 levels, respectively. Appropriations in 21 states have fully recovered to 2008
levels. Still, appropriations in nine states are at least 20% below 2008 levels, signifying a lack ofrecovery in education appropriations following the Great Recession. The largest declines from2008 to 2021 are in Oklahoma (42.2%), Nevada (39.0%), Louisiana (38.0%), and Arizona (36.8%).
After two years of increases (3.3% in 2020 and 11.0% in 2021), two-year education appropriations
per FTE exceeded those of four-year institutions this year ($9,347 and $8,859, respectively).
Despite similar funding levels, there were important differences in the sources of two- and fouryear public institution state and local funding:• Two-year public institutions received $5,647 per FTE in state public operating
appropriations, 76.2% of the four-year general operating appropriation ($7,414).
State public operating increased 10.0% at two-year institutions and declined
2.7% at four-year institutions in the last year.
• Local appropriations were 151.8 times higher at two-year institutions ($2,976)
compared to four-year institutions ($20 per FTE). Twenty-nine states had
local appropriations for two-year institutions, compared to only eight for
four-year institutions.
• Total state and local support for public institutions (which includes $1,690 instate research and medical funding for four-year institutions) was $9,347 at
two-year institutions, 88.6% of the amount at four-year institutions ($10,555).

STATE PUBLIC FINANCIAL AID PER FTEState public financial aid is any state appropriated student financial aid for
public institutions, excluding loans. These funds are included in education
appropriations but do not include federal stimulus funding. Public aid
accounts for 79.8% of total state financial aid funding.
• State public financial aid per FTE increased 8.8% from 2020
to 2021 and reached an all-time high of $921 per FTE. These
funds made up 9.9% of all education appropriations, the largest
proportion since these data were first collected in 2001.
• Financial aid per FTE increased in 31 states in the last year. In 2021,
four states awarded less than $100 per FTE in state financial aid(Arizona, Michigan, Montana, and New Hampshire); another fourstates awarded over $2,000 per FTE (Georgia, Louisiana, South
Carolina, and Tennessee).
• State financial aid awards averaged $510 at two-year institutions,
44.8% of the $1,138 awarded to students attending four-year
institutions. The majority of states (31) awarded more financial aid
per FTE to students attending four-year institutions.

SHEEO: STATE HIGHER EDUCATION FINANCE: FY 2021

9

NET TUITION AND FEE REVENUE PER FTE
Net tuition revenue is the total amount of tuition and fees received bypublic institutions, minus state and institutional financial aid and medical
tuition and fees.
• Public institutions received, on average, $6,723 in net tuition
revenue from in-state and out-of-state students in 2021, down
3.2% ($224) from last year. In dollars, this is the second largest
decline in net tuition revenue per FTE since 1980. The decline in
net tuition revenue is due to a combination of increases in statepublic financial aid, minimal tuition rate growth, and any changes
in the proportion of students paying higher tuition rates.
• Notably, this is only the second time period with declines in net
tuition revenue per FTE since the SHEF dataset began in 1980. Net
tuition revenue per FTE has increased 180.5% ($4,326 per FTE)
since 1980.
• Net tuition revenue per FTE declined in 72% of states between
2020 and 2021, and just over half of all states and Washington,
D.C., have had declines in net tuition and fee revenue over the last
five years. In 2021, Florida had the lowest net tuition revenue per
FTE ($2,301) while Delaware had the highest ($16,517).
• In 2021, two-year institutions received $2,604 in net tuition
revenue per FTE or 28.0% of the average net tuition revenue per
FTE at four-year institutions ($9,295). Net tuition revenue per FTE
declined 1.7% at two-year institutions over the last year, and 4.8%
at four-year institutions. Only one state (Florida) had higher average
net tuition revenue per FTE in the two-year sector; all other statesreceived more tuition revenue per FTE from the four-year sector.

TOTAL EDUCATION REVENUE PER FTE$16K

Total education revenue is the sum of education appropriations and net
tuition and fee revenue, excluding net tuition revenue used for capital debt
service.
• Total education revenue increased 1.1% from 2020 to 2021,
reaching an all-time high of $15,959 per FTE. However, total
revenue is only at a record high in 18 states and Washington, D.C.,
and varies substantially by institution type. Without the influx offederal stimulus funding into states for higher education, total
education revenue would have declined 0.3% in the last year.
Finally, many institutions, particularly those that are the most reliant
on state funding, have not been able to increase tuition revenue tooffset declines in state funding and are not at an all-time high for
total education revenue.
• Public institutions in nine states and Washington, D.C., have morethan $20,000 per FTE in education revenue.

SHEEO: STATE HIGHER EDUCATION FINANCE: FY 2021

10• In 2021, four-year institutions averaged $18,021 in total education
revenue per FTE, 1.51 times the amount at two-year institutions($11,928 per FTE). Four-year institutions had less total revenue withwhich to educate students than two-year institutions in only one
state (Wisconsin).
• Nationally, total education revenue per FTE increased $880 (8.0%)
at two-year institutions, and decreased $418 (2.3%) at four-year
institutions in 2021.

STUDENT SHARE
The student share is a measure of the proportion of total education revenue
at public institutions that comes from net tuition and fee revenue.
• There has been a substantial shift of responsibility for financing
public higher education toward net tuition revenue, from 20.9%
in 1980 to 42.1% in 2021. Historically, the student share tends
to increase most rapidly during periods of economic recession,
shifting more of higher education costs to students and families.
Yet, the student share decreased by 1.9 percentage points in 2021
following the fiscal year 2020 recession, in large part because thisrecession was brief and all but five states allocated federal stimulus
funding to higher education in 2021.
• Excluding federal stimulus funding, the student share in 2021
was 43.0%.
• In 2021, 20 states had a student share above 50%. From 20202021, the student share decreased in 40 states and Washington,
D.C. However, over the last 10 years, the student share has
increased in 23 states. Since 1980, the student share has increasedin every state but Wyoming.
• At two-year institutions, the average student share was less than aquarter (21.8%). At four-year institutions, the average student share
was over half (51.6%). In four states, the four-year student share wasgreater than 75%: Arizona, Delaware, New Hampshire, and Vermont.
• At only 2.7%, California’s community colleges have, by far, thelowest student share of any sector or state in the country. Arizona’s
four-year institutions have the highest student share (79.0%).

SHEEO: STATE HIGHER EDUCATION FINANCE: FY 2021

11

IMPLICATIONSFiscal year 2021 defied several long-term trends in higher education finance. In the past, the year
following an economic recession meant steep cuts in state funding, sharp growth in student
enrollment, and growth in tuition revenue as public institutions increased tuition rates and worked
to attract out-of-state and international students to make up for anticipated lost revenue from thestate. Instead, state and local education appropriations per student increased for the ninth straightyear in 2021 despite a short economic recession in fiscal year 2020, signifying states’ continued
commitment to prioritize higher education. Much of this increase can be attributed to generous
federal stimulus and relief funding, which supported total state revenues, reducing budget strain
while also directly supporting higher education during the COVID-19 pandemic. While thesefederal stimulus and relief funds are helpful, they cannot be a replacement for long-term state
investments as stimulus funds are time-limited and often restricted in their use.
The COVID-19 pandemic counteracted the usual counter-cyclical enrollment trend where
enrollment increases during and immediately following economic recessions. Instead, 2021 had
the largest single-year decline in public higher education enrollment on record. Additionally,
for the third straight year, net tuition and fee revenue did not increase enough to keep up with
inflation. The decline in net tuition revenue from 2020 to 2021 is primarily due to low growth intuition rates, increasing state financial aid, and a change in the proportion of students paying outof-state and otherwise more expensive tuition rates. This continued decline in tuition revenue
puts greater pressure on states not to cut funding to public higher education in the coming years.
However, when federal stimulus funds run out, states will face difficult budgetary decisions, andhigher education may face cuts in some states.
The SHEF report broadly addresses the wide variation in how states fund public higher education.
States vary in their relative allocations to general operating, financial aid, and research; they varyin their reliance on local support to fund community colleges and federal stimulus funding during
the COVID-19 pandemic; and they vary in the total funding allocated to higher education ona per-student level. Public institutions in some states remain primarily publicly funded, but agrowing proportion have become primarily reliant on student tuition and fee revenue over thelast two decades. State-specific context is incredibly important when discussing higher education
finance—the trends described in this report reflect the national average, and there are almost
always outliers to every trend. Additionally, even within states, there can be wide variation in theenrollment and revenue patterns at each institution.
On the whole, public institutions face uncertainty on where their future revenues will come from.
With declining revenue from both states and students and after two years of increased costs dueto the pandemic and the switch to online learning, state support for higher education is crucial
for the continued success of public institutions. Thanks to the influx of federal stimulus funding,public systems of higher education are met with a unique opportunity to make progress toward
state attainment goals. Now is a crucial time to make long-term, sustained investments to promote
educational quality and student affordability and to reduce inequality in educational attainment.

SHEEO: STATE HIGHER EDUCATION FINANCE: FY 2021

12

SOURCES AND USES OF STATE FUNDING
Two core components of the SHEF report are the sources and uses of state and local investments
in higher education. This section presents data on the distribution of state and local funds at thenational level over time and across states. Later sections examine trends over time using inflationadjusted and per student data.
In considering a state’s investment in higher education, SHEF includes all state and local revenue
sources, including those from taxes, lottery receipts, mineral and resource extraction revenue,
and state-funded endowments. SHEF also identifies the primary purposes or uses for which thispublic revenue is provided, including general institutional operating expenses, student financial
assistance, agency funding, and support for centrally funded research, medical education, andextension programs. Higher education is the third largest single budget area in state support,
representing 8.5% of total state spending and 9.4% of general fund expenditures in fiscal year
2021. Although state higher education expenditures as a share of general fund spending has
remained constant since fiscal year 2019, spending on state higher education as a share of total
state expenditures has declined by 1.5%.2,3 It is generally understood that state funding for higher
education acts as a balance wheel during economic downturns, with funding reductions typicallygreater than those in other budget areas. 4 In part, states disproportionately reduce per-student
funding to higher education due to the presumption that funding reductions can be partially
offset with tuition revenue increases.

SOURCES OF STATE FUNDING
This section provides data and analysis of the sources of state and local government support forhigher education over the last 15 years (2006-2021). The funding amounts in this section are notadjusted for inflation or enrollment.

1. NATIONAL TRENDS
Table 1.1 shows that state and local government funding for higher education totaled $113.2
billion in fiscal year 2021, with more than $3.7 billion in federal stimulus funding. Federal stimulus
funding in 2021 comprised just 3.2% of total support but increased 185.8% from fiscal year
2020.5 States contributed $101.0 billion, and local governments in 32 states contributed $12.2
billion, representing increases of 3.6% and 4.2%, respectively. The largest funding source wasstate tax appropriations, which accounted for $92.0 billion or 81.3% of total funding as shown in
Figure 1.1. Non-tax support (mostly from state lotteries) increased 6.0% and totaled more than $4.4
billion. Non-appropriated support, state-funded endowments, and other sources of state funding

2.

National Association of State Budget Officers. (2021). State expenditure report: Fiscal years 2019-2021. www.nasbo.org/reports-data/state-expenditure-report3.

Unlike the SHEF data, NASBO expenditures exclude employer contributions to pensions and health benefits. NASBO defines state
general funds as the majority fund for financing a state's operations with revenues received from broad-based state taxes, such as
personal and corporate income tax and sales tax.

4.

Delaney, J., & Doyle, W. (2011). State spending on higher education: Testing the balance wheel over time. Journal of Education Finance,
36(4). www.jstor.org/stable/23018116

5.

Federal stimulus funding is provided to state governments to stabilize state and local sources of revenue for higher education. It includes
funds from the American Recovery and Reinvestment Act (ARRA) during the Great Recession, the 2020 Coronavirus Aid, Relief, andEconomic Security (CARES) Act, the 2020 Coronavirus Response and Relief Supplemental Appropriations (CRRSA) Act, and the 2021
American Rescue Plan (ARP) during the COVID-19 pandemic. Federal stimulus must be state allocated and excludes aid provided directly
to institutions such as the Higher Education Emergency Relief Fund (HEERF).

SHEEO: STATE HIGHER EDUCATION FINANCE: FY 2021

13

contributed an additional $1.5 billion, an increase of 34.1% from 2020. This increase was entirely
due to a 63.6% increase in endowment funds, and 98.0% of the net increase in endowment wasdue to a $410.9 million increase in Texas.

TABLE 1.1
SOURCES OF STATE AND LOCAL HIGHER EDUCATION FUNDING IN THE U.S.,FY 2006-2021 (UNADJUSTED DOLLARS, IN MILLIONS)
2006

2011

2016

2019

2020

2021

2021 %
DISTRIBUTION$-$2,840$-$-$1,286$3,677

3.2%

TAX APPROPRIATIONS$67,409$73,102$79,643$87,723$91,129$91,997

81.3%

NON-TAX SUPPORT$2,324$3,088$3,375$4,007$4,187$4,436

3.9%

NON-APPROPRIATED SUPPORT

$121

$79

$116

$142

$166

$130

0.1%

STATE-FUNDED ENDOWMENT EARNINGS

$303

$387

$603

$641

$659

$1,079

1.0%

OTHER

$218

$550

$189

$240

$282

$278

0.2%

SOURCEFEDERAL STIMULUS

$43

$834

$54

$63

$204

$551

0.5%

TOTAL STATE SUPPORTFUNDS NOT AVAILABLE FOR USE$70,331$79,212$83,872$92,690$97,506$101,045

89.3%

LOCAL TAX APPROPRIATIONS$7,072$8,960$9,777$11,235$11,660$12,152

10.7%

TOTAL STATE AND LOCAL SUPPORT$77,404$88,172$93,649$103,925$109,166$113,197

100.0%TOTAL STATE AND LOCAL SUPPORT (NO STIMULUS)$77,404$85,332$93,649$103,925$107,879$109,520

96.8%

NOTES:
1. Federal stimulus funding is provided to state governments to stabilize state and local sources of revenue for higher education. It
includes funds from the American Recovery and Reinvestment Act (ARRA) during the Great Recession, the 2020 Coronavirus Aid,
Relief, and Economic Security (CARES) Act, the 2020 Coronavirus Response and Relief Supplemental Appropriations (CRRSA) Act,and the 2021 American Rescue Plan (ARP) during the COVID-19 pandemic. Federal stimulus must be state allocated and excludes
aid provided directly to institutions (such as HEERF).
2. Other includes multiyear appropriations from previous years and funds not classified in one of the other source categories.
3. Funds not available for use include appropriations that were returned to the state, and portions of multiyear appropriations to be
spread over other years.
4. Total state and local support is the sum of federal stimulus funds, state and local tax appropriations, non-tax support, nonappropriated support, state-funded endowment earnings, and other state funds, net of any funds not available for use.
SOURCE: State Higher Education Executive Officers Association

SHEEO: STATE HIGHER EDUCATION FINANCE: FY 2021

14

FIGURE 1.1
DISTRIBUTION OF STATE AND LOCAL HIGHER EDUCATION FUNDING SOURCES, U.S.,FY 2006-2021
100%
3%

3%

3%

9%

9%

9%

90%

3%

3%

4%

4%

4%

3%

4%

4%

4%

4%

4%

4%

4%

10%

10%

10%

11%

11%

11%

10%

10%

11%

11%

11%

11%

11%

6%

3%

2%
1%

3%

80%

70%

87%

88%

88%

85%
80%

83%

84%

84%

85%

2012

2013

2014

86%

85%

85%

85%

84%

83%

2019

2020

81%

60%

50%

2006

2007

2008

% TAX APPROPRIATIONS

2009

2010

2011

% FEDERAL STIMULUS% LOCAL

2015

2016

% NON-TAX

2017

2018

% ENDOWMENT

2021% OTHER SUPPORTNOTES:
1. Tax appropriations are any appropriations from state government taxes to institutions for operations and other higher
education activities.
2. Federal stimulus funding is provided to state governments to stabilize state and local sources of revenue for higher education. It
includes funds from the American Recovery and Reinvestment Act (ARRA) during the Great Recession, the 2020 Coronavirus Aid,
Relief, and Economic Security (CARES) Act, the 2020 Coronavirus Response and Relief Supplemental Appropriations (CRRSA) Act,and the 2021 American Rescue Plan (ARP) during the COVID-19 pandemic. Federal stimulus must be state allocated and excludes
aid provided directly to institutions (such as HEERF).
3. Local appropriations are the sum of tax appropriations from any government entity below the state level to public institutions for
operating expenses. Local appropriations do not include grants from local nonprofit organizations such as chambers of commerceand charitable foundations.
4. Non-tax support includes any appropriated non-tax state support set aside by the state for higher education. This may include, but
is not limited to, allocations from lotteries (including lottery scholarships), tobacco settlements, casinos, or other gaming sources.
5. In all years, state-funded endowment earnings and other sources accounted for less than 1% of total state and local funding forhigher education. Other sources include non-appropriated funds, multiyear appropriations from previous years, and funds notclassified in one of the other source categories.
SOURCE: State Higher Education Executive Officers Association

2. STATE COMPARISONS
While the distribution of state and local higher education funding sources varies across the nation,
almost all states are heavily reliant on state tax appropriations to fund higher education.6 In fiscal
year 2020, four states (Massachusetts, North Dakota, Rhode Island, and Washington) relied on
tax appropriations as their only major source of state and local funding for higher education. Dueto federal stimulus funding allocated by states to higher education, no states relied solely on tax
appropriations as their major source of state and local funding in fiscal year 2021. Additionally, thenumber of states relying on state tax appropriations for at least 75% of their funding decreased
from 45 to 41.

6. See Table 1.2 available online at shef.sheeo.org/report/?report_page=sources-and-uses-of-funding.

SHEEO: STATE HIGHER EDUCATION FINANCE: FY 202115

Colorado and Arizona are the only states where the majority of higher education funding did notcome from state tax appropriations in 2021. In Colorado, 39.0% of higher education funding camefrom federal stimulus funding and only 49.4% came from tax appropriations. In years when federal
stimulus funds have not been used, Colorado has relied on tax appropriations for 90.9% of theirfunding, on average.7 Nearly half (46.0%) of higher education funding in Arizona came from local
appropriations. Kansas and Michigan were the only other states that relied on local appropriations
for at least 20% of higher education funding. Eighteen states and Washington, D.C., received no
local tax appropriations for higher education.8
Several southern states with financial aid programs funded from lottery dollars were also lessreliant on tax appropriations. Florida, Georgia, Kentucky, and South Carolina relied on non-tax
support for at least 20% of higher education funding. Meanwhile, 24 states and Washington, D.C.,
had no non-tax support.
Endowments, non-appropriated support, and other sources of state revenue made up 1% or lessof higher education funding in all but 12 states and Washington, D.C. In Arizona, Oklahoma, Texas,and Washington, D.C., these revenue sources made up more than 5% of higher education support.
Federal stimulus funding provided to state governments in 2021 was used for higher education in
all but five states. These funds comprised less than 5% of total state and local support in 32 states.
Five states (Colorado, Minnesota, New Hampshire, Vermont, and Wyoming) and Washington, D.C.,
relied on federal stimulus funding for more than 20% of higher education funding in 2021.
Two noteworthy trends have emerged as states have become less reliant on tax appropriations
over time. These trends can be explored more closely using the interactive version of Figure 1.1
on the SHEF website.9
1. Many states are increasingly reliant on local appropriations. Over the last
15 years, the proportion of total higher education funding from local
appropriations has increased in 26 states. In five states (Arizona, Kansas,
Nebraska, New Mexico, and Texas), the proportion of total higher education
funding derived from local appropriations has increased by at least 5
percentage points since 2006.
2. Similarly, 18 states had increases in non-tax appropriations from 2006 to
2021. In five southern states (Arkansas, Florida, Kentucky, South Carolina, andTennessee), all with sizable lottery-funded student financial aid programs,
non-tax support as a proportion of total funding increased by more than 5
percentage points over the last 15 years.

USES OF STATE FUNDING
This section provides data and analysis of the uses of state and local government support forhigher education over the last 15 years (2006-2021). As with the prior section, this section’s
funding amounts are not adjusted for inflation or enrollment. However, unlike the prior section,federal stimulus funding is not included in the uses of state and local funding.

7.

See the State Spotlight on Colorado for more information.

8. In Washington, D.C., district taxes are classified as state tax appropriations, not local support.
9.

shef.sheeo.org

SHEEO: STATE HIGHER EDUCATION FINANCE: FY 2021

16

1. NATIONAL TRENDS
Table 1.3 shows that, nationally, funds allocated to support general public operations at public
institutions increased 0.9% in 2021, representing 78.1% ($85.6 billion) of state and local higher
education funding. General public operations include funding directly used to support instruction
at two- and four-year public institutions as well as funding to state higher education agencies.
Agency funding is the allocation of operating funds to state-funded, state-level coordinating andgoverning bodies. These funds have always been included in general public operations but were
not available as a breakout until 2019. In 2021, states provided $1.5 billion in agency funding (1.8%of all general public operations).
Other uses of funding include:• Special purpose appropriations for research, agricultural extension programs,
public health care services, and medical education (RAM). RAM funds havedecreased 0.3% since 2020 to $11.1 billion—10.1% of total state and local support.
• Student financial aid increased 7.5% to $12.2 billion—11.2% of total support—
from 2020 to 2021. Nearly 80% of total student aid was allocated to students
attending public institutions.
• Operating support for independent (private) institutions increased 8.4% to$247.3 million, and support for non-credit and continuing education increased
0.7% to $387.8 million. Together, these uses of state and local funding
constitute 0.6% of higher education funding.
TABLE 1.3
USES OF STATE AND LOCAL HIGHER EDUCATION FUNDING IN THE U.S., FY 2006-2021(UNADJUSTED DOLLARS, IN MILLIONS)
USEGENERAL PUBLIC OPERATIONSAGENCY FUNDING

2006

2011

2016

2019

2020

2021

2021 %
DISTRIBUTION$60,828$66,075$73,759$82,221$84,763$85,559

78.1%

N/A

N/A

N/A

$1,705$1,897$1,515

1.4%

RESEARCH - AGRICULTURE - MEDICAL (RAM)$9,181$9,874$9,959$10,401$11,118$11,089

10.1%

STATE PUBLIC FINANCIAL AID$4,534$6,487$7,182$8,407$9,012$9,766

8.9%
0.0%

OUT-OF-STATE STUDENT AID

$36

$42

$38

$38

$38

$38

INDEPENDENT STUDENT AID$2,293$2,336$2,227$2,230$2,310$2,398

2.2%

$263

$196

$196

$219

$228

$247

0.2%

INDEPENDENT OPERATING SUPPORTNON-CREDIT AND CONTINUING EDUCATIONTOTAL STUDENT FINANCIAL AID

$266

$322

$287

$387

$385

$388

0.4%

$6,865$8,865$9,447$10,697$11,384$12,237

11.2%

TOTAL INDEPENDENT SUPPORT$2,556$2,533$2,423$2,449$2,538$2,646

2.4%

TOTAL STATE AND LOCAL SUPPORT (NO STIMULUS)$77,404$85,332$93,649$103,925$107,879$109,520

100.0%NOTES:
1. General public operations are any state and local support for public higher education institutions and agencies, excluding RAM,financial aid, and non-credit and continuing education. Federal stimulus funding is not included.
2. Agency funding is included in general public operations, and is the allocation of operating funds to state-funded, state-level
coordinating and governing bodies.
3. RAM refers to the total appropriations intended for the direct operations of research, agriculture, public health care services, andmedical schools.
4. Total student financial aid is the sum of any state appropriated student financial aid for public, independent, and out-of-state
institutions, excluding loans. Financial aid for students attending medical institutions is included in total student financial aid but
excluded from all other student aid categories.
5. Total independent support is the sum of state funds for private institutions (independent student aid and independent
operating support).
6. Total state and local support is the sum of tax appropriations, non-tax support, local appropriations, non-appropriated support, statefunded endowment earnings, and other state funds, net of any funds not available for use. Federal stimulus funding is not included.
SOURCE: State Higher Education Executive Officers Association

SHEEO: STATE HIGHER EDUCATION FINANCE: FY 2021

17

Overall, except for a growing portion of funding allocated to financial aid, the uses of state andlocal higher education funding have remained relatively constant on a national level over time.
Figure 1.3 shows that the most significant change in uses of higher education funding is the
portion of funding allocated to public financial aid, which increased from 5.9% in 2006 to 8.9% of
all state and local support in 2021. Additionally, financial aid to students attending independent or
out-of-state institutions declined by nearly 1 percentage point (0.8) over that same time frame andnow accounts for 2.2% of state and local support.
FIGURE 1.3
DISTRIBUTION OF STATE AND LOCAL HIGHER EDUCATION FUNDING USES, U.S.,FY 2006-2021
100%
3%

3%

3%

3%

3%

3%

3%

3%

3%

3%

2%

2%

2%

2%

2%

2%

6%

6%

6%

7%

7%

8%

8%

7%

7%

8%

8%

7%

8%

8%

8%

9%

12%

12%

12%

12%

12%

12%

12%

11%

11%

11%

10%

10%

10%

10%

10%

90%

12%

80%

70%

79%

79%

79%

78%

77%

77%

77%

78%

78%

78%

79%

79%

79%

79%

79%

78%

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

60%

50%

% GENERAL PUBLIC OPERATIONS% RAM% PUBLIC FINANCIAL AID% OTHER FINANCIAL AID% OTHER USESNOTES:
1. General public operations are any state and local support for public higher education institutions and agencies, excluding RAM,financial aid, and non-credit and continuing education. Federal stimulus funding is not included.
2. RAM refers to the total appropriations intended for the direct operations of research, agriculture, public health care services, andmedical schools.
3. Other financial aid includes any state appropriated student financial aid to students attending independent (private) or out-of-state
institutions.
4. In all years, other uses accounted for less than 1% of total state and local funding for higher education. Other uses include funding
for non-credit and independent operating.
SOURCE: State Higher Education Executive Officers Association

2. STATE COMPARISONS
Across the states, there is significant variation in the uses of state and local funding for higher
education.10 All but one state, Louisiana, allocated at least half of all funding to general public
operations in fiscal year 2021 (Louisiana was one of a few states to allocate large proportions ofstate and local funding to both RAM and student financial aid). In 22 states and Washington, D.C.,
at least 80% of funding was allocated for public institutions’ general operations. However, overthe last 15 years, the proportion of funding allocated to general public operations decreased in
36 states.

10. See Table 1.4, available online at shef.sheeo.org/report/?report_page=sources-and-uses-of-funding

SHEEO: STATE HIGHER EDUCATION FINANCE: FY 2021

18

Forty-five states reported agency funding in fiscal year 2021. Agency allocations ranged from
0.02% of all support in Montana to 13.9% in Idaho, and accounted for less than 1% of all support
in 27 states. Five states (Alaska, Maine, Michigan, Rhode Island, and Vermont) and Washington,
D.C., reported no agency funding. States may not have agency funding if they do not have astatewide board for higher education (like in Michigan), or if systems of institutions allocate theirown funding for system-level agency operations from their general budgets (as in Maine).
All but one state (Rhode Island) provided state and local support for direct operations of research,
agriculture, public health care services, and medical schools (RAM). Thirty-two states andWashington, D.C., allocated at least 10% of funding to these areas in 2021, with Mississippi andWest Virginia allocating more than 25% of total funding to RAM.
The proportion of state support for student financial aid ranged from 0.8% in Arizona to 34.5% inSouth Carolina. Only Arizona and Hawaii allocated less than 1% of funding to student financial aid.
Seven states (Colorado, Georgia, Kentucky, Louisiana, South Carolina, Tennessee, and Washington)
allocated at least 20% of funding to financial aid.11 From 2006 to 2021, 39 states increased the
proportion of total state and local support they appropriated to student financial aid.
Support for independent (private) institutions is generally one of the smallest allocations of stateand local funding. While 45 states provided funding to independent institutions, only three states(Kentucky, Pennsylvania, and South Carolina) gave more than 6% of funding to these institutionsin 2021. In most states, funding for independent institutions was predominantly allocated to
student financial aid rather than institutional operating appropriations. Only two states, Maryland(75.6%) and Alabama (69.6%), allocated more than 50% of support for independent institutions toinstitutional operating.

11. Indiana allocated 19.997% of state and local support to funding student financial aid, which rounds to 20.0% in Table 1.3.

SHEEO: STATE HIGHER EDUCATION FINANCE: FY 2021

19

DISTRIBUTION OF REVENUE:WAVE CHARTS AND STUDENT SHAREThis section explores trends in the distribution and levels of the two primary revenue sources
for public institutions of higher education: state and local funding and student tuition revenue.
From this section forward, the SHEF report highlights trends in higher education revenue andenrollment for public institutions only.
Several derived metrics are analyzed throughout the report, first at the U.S. level and then acrossstates and sectors.12 These metrics are net full-time equivalent (FTE) enrollment, general public
operations, state public financial aid, education appropriations, net tuition and fee revenue, total
education revenue, and student share. Each metric is defined in Table 2.1 and explained in moredetail in the sections that follow.
SHEF’s analytic methods are designed to make basic data about higher education finance ascomparable as possible across states and over time. Finance metrics are provided on a per-student
basis (using net FTE enrollment) and are modified using three adjustments:13
Higher Education Cost Adjustment (HECA) adjusts for inflation over time.
Cost of Living Index (COLI) accounts for cost of living differences among
the states.
Enrollment Mix Index (EMI) adjusts for differences in the mix ofenrollments across institutions resulting in different costs across the states(e.g., at community colleges or more expensive research institutions).

OVERVIEW: TRENDS OVER TIME
1. NATIONAL TRENDS
Table 2.1 shows the effects of FTE enrollment and inflation on the SHEF metrics. The progression
shown in this table is a starting point for understanding the national story of public higher education
funding from state and local sources, tuition and fee revenue from students and families, andenrollment over time. Note that the state adjustments (COLI and EMI) do not impact the U.S.
average.
The first section of Table 2.1 shows that in unadjusted dollars (without adjusting for inflationor enrollment), education appropriations increased 4.1% over 2020. Both subcomponents ofeducation appropriations also increased, 8.4% for state public financial aid and just 0.9% forgeneral public operations. Net tuition revenue (tuition and fees net of state and institutional aid
and medical tuition) decreased 3.6%.

12. It is important to note that the U.S. totals are not averages of state averages. For example, “U.S. total education appropriations per FTE”
is the sum of all education appropriations divided by the sum of all net FTEs across the 50 states. It is not the average of each of the 50
states’ individual per-FTE calculations.
13. These adjustments are described in more detail on the data definitions page of the SHEF website (shef.sheeo.org/data-definitions).

SHEEO: STATE HIGHER EDUCATION FINANCE: FY 2021

20

The middle section of Table 2.1 shows that the Higher Education Cost Adjustment (HECA), ameasure of inflation in service industries, increased 2.7% from 2020 to 2021. After applying HECA
and therefore removing any increases due to inflation, state public financial aid increased 5.5%,
while general public operations decreased 1.7%, and net tuition revenue decreased 6.1%.
The changes described above may be misleading if not contextualized with changes in net FTE
enrollment, shown in the final section of Table 2.1. In the last year, enrollment declined 3.0%, or
about 324,000 FTE students. This is the largest enrollment decline since the beginning of the
SHEF dataset in 1980, both in percentage and total number. After adjusting for both inflation andenrollment, we see that education appropriations increased 4.5% (financial aid increased 8.8%,
general public operations increased 1.3%), while net tuition revenue decreased 3.2%, and total
education revenue increased 1.1%.
This year marks the second-largest ever decrease in inflation-adjusted net tuition revenue per
FTE. Since the SHEF dataset began in 1980, net tuition revenue per FTE has only declined fivetimes: in 2000 (2.7%), 2001 (1.2%), 2019 (3.6%), 2020 (0.2%), and now (3.2%). This year’s decline ispartially, but not entirely, explained by state public financial aid increases, which are removed fromnet tuition revenue.
Education appropriations and total education revenue described here and reported in Table 2.1
include federal stimulus funding in fiscal years 2020 and 2021. Excluding federal stimulus funding,inflation-adjusted education appropriations per FTE increased 2.0%, and total education revenue
declined 0.3%.

MEASUREMENT NOTE: FEDERAL STIMULUS FUNDING
The SHEF report includes federal stimulus funding allocated to states for higher
education to stabilize state and local sources of funding for higher education andprovide additional resources during the COVID-19 pandemic in fiscal years 2020
and 2021. Federal stimulus included in the SHEF report includes any state allocated
GEERF, CRF, or State and Local Fiscal Recovery Funds, and excludes aid provided
directly to institutions (such as HEERF). Federal stimulus funds were generally
reported in the year(s) in which they were expended. State- and sector-level stateand local support, education appropriations, and total education revenue include
federal stimulus funding. Federal stimulus funding for private institution operations
is excluded from education appropriations and total education revenue. Federal
stimulus is not included in state public financial aid, general public operations, orstate public operating.

SHEEO: STATE HIGHER EDUCATION FINANCE: FY 2021

21

TABLE 2.1
IMPACT OF INFLATION AND ENROLLMENT ON SHEF METRICS, U.S., FY 1980-2021
1980% CHANGE % CHANGE
SINCE 2020 SINCE 2016

2001

2011

2016

2020

2021

N/A

$2,834$6,487$7,182$9,012$9,766

8.4%% CHANGE % CHANGE % CHANGE
SINCE 2011 SINCE 2001 SINCE 1980

CURRENT UNADJUSTED DOLLARS (MILLIONS)STATE PUBLIC FINANCIAL AID

36.0%

50.5%

244.6%

N/A

N/A$53,298$66,075$73,759$84,763$85,559

0.9%

16.0%

29.5%

60.5%

N/A

EDUCATION APPROPRIATIONS$16,134$56,107$75,401$80,942$94,981$98,872

4.1%

22.2%

31.1%

76.2%

512.8%NET TUITION REVENUE$4,264$22,816$54,644$69,879$73,910$71,264

-3.6%

2.0%

30.4%

212.3%

1571.4%TOTAL EDUCATION REVENUE$20,398$78,812$129,492$150,063$167,939$169,175

0.7%

12.7%

30.6%

114.7%

729.4%

GENERAL PUBLIC OPERATIONSCONSTANT INFLATION ADJUSTED DOLLARS (MILLIONS)HECASTATE PUBLIC FINANCIAL AID

0.25970.62030.81580.8932

0.97401.0000

2.7%

12.0%

22.6%

61.2%

285.1%

N/A$4,568$7,952$8,041$9,253$9,766

5.5%

21.4%

22.8%

113.8%

N/A

N/A$85,924$80,993$82,576$87,029$85,559

-1.7%

3.6%

5.6%

-0.4%

N/A

EDUCATION APPROPRIATIONS$62,137$90,452$92,425$90,617$97,520$98,872

1.4%

9.1%

7.0%

9.3%

59.1%

NET TUITION REVENUE$16,421$36,783$66,981$78,232$75,886$71,264

-6.1%

-8.9%

6.4%

93.7%

334.0%TOTAL EDUCATION REVENUE$78,559$127,055$158,729$168,001$172,428$169,175

-1.9%

0.7%

6.6%

33.2%

115.3%

11,654,967

11,085,435 10,924,333

10,600,381

-3.0%

-4.4%

-9.0%

21.7%

54.7%

$921

8.8%

27.0%

35.0%

75.6%

N/A

GENERAL PUBLIC OPERATIONSCONSTANT INFLATION ADJUSTED DOLLARS (PER FTE)FTE ENROLLMENT
STATE PUBLIC FINANCIAL AID
GENERAL PUBLIC OPERATIONSEDUCATION APPROPRIATIONS

6,852,242 8,709,255
N/A

$525

$682

$725

$847

N/A

$9,866$6,949$7,449$7,967$8,071

1.3%

8.4%

16.1%

-18.2%

N/A$9,068$10,386$7,930$8,174$8,927$9,327

4.5%

14.1%

17.6%

-10.2%

2.9%

NET TUITION REVENUE$2,396$4,223$5,747$7,057$6,946$6,723

-3.2%

-4.7%

17.0%

59.2%

180.5%TOTAL EDUCATION REVENUE$11,465$14,588$13,619$15,155$15,784$15,959

1.1%

5.3%

17.2%

9.4%

39.2%

NOTES:
1. Full-time equivalent enrollment converts student credit hours to full-time, academic year students, but excludes medical students.
2. State public financial aid is the part of education appropriations used for student financial aid at public institutions, excluding loans
and aid for students attending medical schools.
3. General public operations are any state and local support for public higher education institutions and agencies, excluding RAM,financial aid, and non-credit and continuing education. Federal stimulus funding is not included.
4. Education appropriations are a measure of state and local support available for public higher education operating expenses andstudent financial aid, excluding appropriations for research, hospitals, and medical education. Education appropriations include
federal stimulus funding.
5. Net tuition revenue is calculated by taking the gross amount of tuition and fees, less state and institutional financial aid, tuition
waivers or discounts, and medical student tuition and fees.
6. Total education revenue is the sum of education appropriations and net tuition, excluding net tuition revenue used for capital debt
service. Total education revenue includes federal stimulus funding.
7. The years 1980 and 2001 are included in this table because they are the starting points of the historical SHEF dataset and modern
SHEF data collection, respectively.
8. The Higher Education Cost Adjustment (HECA) estimates inflation in the costs paid by colleges and universities. HECA adjusts for
inflation from the state perspective.
SOURCE: State Higher Education Executive Officers Association

SHEEO: STATE HIGHER EDUCATION FINANCE: FY 2021

22

2. SECTOR TRENDS
Modeled after the previous section, Table 2.1A shows the impacts of inflation and enrollment on
sector-level revenue at public institutions. Currently, only data for 2019 through 2021 are available.
In future years, this table will expand to show longer trends over time.
Between 2020 and 2021, in unadjusted dollars, total education appropriations increased 7.0%
at two-year institutions and 2.3% at four-year institutions. Sector-level education appropriations
consist of state public financial aid, state public operating appropriations, and local appropriations.
State public financial aid was largely flat at two-year institutions (a 0.8% increase) but increased
10.0% at four-year institutions. State public operating appropriations increased 6.0% at two-year
institutions but declined 1.1% at four-year institutions. Local appropriations, which primarily support
community colleges, increased 4.3% and 0.9% at two- and four-year institutions, respectively.
Four-year institutions also receive research, agriculture, and medical (RAM) appropriations, which
declined 0.3% from 2020.
The sector-level data show that the national decline in net tuition revenue is larger at two-year
public institutions; unadjusted net tuition revenue declined 5.2% at two-year institutions compared
to 3.2% at four-year institutions. Note that this difference is largely due to the greater enrollment
decline in the two-year sector.
The second section of Table 2.1A shows that state public financial aid failed to keep up with
inflation at two-year institutions (a 1.8% decline), while all other components of state support
increased after adjusting for inflation. At four-year institutions, the opposite was true—state publicfinancial aid was the only area to increase (7.1%) while all other components of state support
declined after adjusting for inflation.
These differences are partially, but not entirely, explained by differing enrollment trends across thesectors. Net FTE enrollment declined 6.1% at two-year institutions compared to only 0.9% at fouryear institutions. After considering changes in net FTE enrollment in the third section of the table,
we see that in constant inflation-adjusted dollars per FTE enrollment:• State public financial aid per FTE increased by $22 (4.6%) at two-year institutions
and $86 (8.1%) at four-year institutions.
• State public operating per FTE increased $512 (10.0%) at two-year institutions
and decreased $209 (2.7%) at four-year institutions.
• Local appropriations per FTE increased $225 (8.2%) at two-year institutions andwere flat (less than $1 per FTE, or a 0.8% decline) at four-year institutions.
• Research, agricultural extension, and medical appropriations only available tofour-year institutions decreased by $34 (2.0%) per FTE.
• Total state and local support per FTE increased by $925 (11.0%) at two-year
institutions and only $21 (0.2%) at four-year institutions• Net tuition revenue per FTE declined by $44 (1.7%) at two-year institutions and$472 (4.8%) at four-year institutions.
• Total education revenue per FTE increased $880 (8.0%) at two-year institutions
and decreased $418 (2.3%) at four-year institutions.
Additional analysis of sector-level trends on these metrics can be found throughout the remainderof the SHEF report.

SHEEO: STATE HIGHER EDUCATION FINANCE: FY 2021

23

TABLE 2.1A
IMPACT OF INFLATION AND ENROLLMENT ON SHEF METRICS BY SECTOR, U.S.,FY 2019-2021
TWO-YEAR
CURRENT UNADJUSTED DOLLARS(MILLIONS)

2019

2020

FOUR-YEAR

2021% CHANGE
SINCE 2020

% CHANGE
SINCE 2019

2019

2020

2021

% CHANGE
SINCE 2020

% CHANGE
SINCE 2019

17.5%

STATE PUBLIC FINANCIAL AID$1,896$2,043$2,0590.8%

8.6%$6,352$6,786$7,465

10.0%

STATE PUBLIC OPERATING$21,276$21,519$22,810

6.0%

7.2%

$47,576$49,163$48,638

-1.1%

2.2%

LOCAL APPROPRIATIONS$11,109$11,532$12,023

4.3%

8.2%

$126

$128

$129

0.9%

2.0%

$-

$-

$-

N/A

N/A

$10,401$11,118$11,089

-0.3%

6.6%

STATE AND LOCAL SUPPORT$34,280$35,294$37,759

7.0%

10.1%

$64,477$67,940$69,246

1.9%

7.4%

EDUCATION APPROPRIATIONS$34,280$35,294$37,759

7.0%

10.1%

$54,054$56,798$58,123

2.3%

7.5%

NET TUITION REVENUE$11,566$11,100$10,521

-5.2%

-9.0%

$61,906$62,993$60,981

-3.2%

-1.5%

TOTAL EDUCATION REVENUE$45,752$46,300$48,185

4.1%

5.3%

$115,151$118,930$118,234

-0.6%

2.7%

RAM

CONSTANT INFLATION ADJUSTED DOLLARS(MILLIONS)

0.9566

0.97401.00002.7%

4.5%

0.9566

0.97401.0000

2.7%

4.5%

STATE PUBLIC FINANCIAL AID$1,981$2,097$2,059

-1.8%

3.9%

$6,640$6,967$7,465

7.1%

12.4%

STATE PUBLIC OPERATING$22,240$22,095$22,810

3.2%

2.6%

$49,732$50,477$48,638

-3.6%

-2.2%

LOCAL APPROPRIATIONS$11,612$11,840$12,023

1.5%

3.5%

$132

$131

$129

-1.8%

-2.4%

$-

$-

$-

N/A

N/A

$10,873$11,416$11,089

-2.9%

2.0%

STATE AND LOCAL SUPPORT$35,833$36,237$37,759

4.2%

5.4%

$67,399$69,756$69,246

-0.7%

2.7%

EDUCATION APPROPRIATIONS$35,833$36,237$37,759

4.2%

5.4%

$56,504$58,317$58,123

-0.3%

2.9%

NET TUITION REVENUE$12,090$11,397$10,521-7.7%-13.0%$64,711$64,677$60,981

-5.7%

-5.8%

TOTAL EDUCATION REVENUE$47,825$47,537$48,185

1.4%

0.8%

$120,369$122,109$118,234

-3.2%

-1.8%

HECA

RAM

CONSTANT INFLATION ADJUSTED DOLLARS(PER FTE)

4,393,411

4,302,763

4,039,641

-6.1%

-8.1%

6,597,299

6,622,142

6,560,746

-0.9%

-0.6%

STATE PUBLIC FINANCIAL AID

$451

$487

$510

4.6%

13.0%

$1,006$1,052$1,138

8.1%

13.0%

STATE PUBLIC OPERATING$5,062$5,135$5,647

10.0%

11.5%

$7,538$7,623$7,414

-2.7%

-1.7%

LOCAL APPROPRIATIONS$2,643$2,752$2,976

8.2%

12.6%

$20

$20

$20

-0.8%

-1.8%

FTE ENROLLMENT

$-

$-

$-

N/A

N/A

$1,648$1,724$1,690

-2.0%

2.6%

STATE AND LOCAL SUPPORT$8,156$8,422$9,347

11.0%

14.6%

$10,216$10,534$10,555

0.2%

3.3%

EDUCATION APPROPRIATIONS$8,156$8,422$9,347

11.0%

14.6%

$8,565$8,806$8,8590.6%

3.4%

NET TUITION REVENUE$2,752$2,649$2,604

-1.7%

-5.4%

$9,809$9,767$9,295

-4.8%

-5.2%

$10,886$11,048$11,928

8.0%

9.6%

$18,245$18,440$18,021

-2.3%

-1.2%

RAM

TOTAL EDUCATION REVENUENOTES:
1. State public financial aid is any state appropriated student financial aid for public institutions, excluding loans and aid for students
attending medical schools. For many states, it includes aid for both tuition costs and living expenses.
2. State public operating appropriations are a measure of state support directly allocated to public two- and four-year institutions.
State public operating excludes local appropriations, agency funding, RAM, and student financial aid.
3. Local appropriations are any local government taxes allocated directly to institutions for operating expenses.
4. RAM refers to the total appropriations intended for the direct operations of research, agriculture, public health care services, andmedical schools.
5. Education appropriations are a measure of state and local support available for public higher education operating expenses andstudent financial aid, excluding appropriations for research, hospitals, and medical education. Sector-level education appropriations
include any portion of federal stimulus funding allocated specifically to each sector, but exclude state agency funding.
6. Net tuition revenue is calculated by taking the gross amount of tuition and fees, less state and institutional financial aid, tuition
waivers or discounts, and medical student tuition and fees.
7. Total education revenue is the sum of education appropriations and net tuition, excluding net tuition revenue used for capital debt
service. Sector-level total education revenue includes any portion of federal stimulus funding allocated specifically to each sector.
8. Sector-level data are recently required components of the SHEF data collection and are not currently available for years prior to 2019.
9. Sector is determined at the institution level using the Carnegie Basic Classification (carnegieclassifications.acenet.edu).
Baccalaureate/Associate's Colleges and "less-than-two-year" degree-granting institutions not assigned a Carnegie classification are
considered two-year institutions.
10. The Higher Education Cost Adjustment (HECA) estimates inflation in the costs paid by colleges and universities. HECA adjusts for
inflation from the state perspective.
SOURCE: State Higher Education Executive Officers Association

SHEEO: STATE HIGHER EDUCATION FINANCE: FY 2021

24

EDUCATION APPROPRIATIONS AND TUITION REVENUE
The historical data in Figure 2.1 (the wave chart) demonstrate the economic cycle’s impact on
public higher education revenue from 1996 to 2021. An interactive version of this figure with databack to 1980 is available online.14 From this point forward, all dollar figures in the SHEF report
are adjusted for inflation and net FTE enrollment.

1. NATIONAL TRENDS
The red line in the wave chart shows FTE enrollment over the last 25 years, which has broadly
increased over time from 6.85 million in 1980 to 10.6 million in 2021. 15 Historically, enrollment
increased sharply during economic recessions and would level off or decline during economic
recoveries. This pattern held during the Great Recession as enrollment increased sharply from2008 through 2011, and then slowly declined for most of the next decade as state economies
recovered. However, the COVID-19 pandemic and ensuing economic recession in 2020 altered
the traditional counter-cyclical enrollment trend. Instead of an increase from fiscal years 2020 to2021, enrollment dropped a full 3.0%, the largest decline on record. In 2021, public institutions
enrolled 10,600,381 FTE students, down 9.0% from the peak in 2011, but still 3.3% above
2008 levels.
The blue bars show change over time in education appropriations per FTE enrolled student.
State education appropriations are made up of general operating funds for public institutions,state public financial aid, and state agency funding. The bars make the shape of a wave overtime because per-student education appropriations generally fluctuate with the economic cycle.
Education appropriations also include federal stimulus funding during the last two economic
recessions. In 2020, federal stimulus funding for public institutions accounted for 1.3% of total
education appropriations ($113 per FTE). In 2021, this amount increased to 3.6% ($335 per FTE).
At the start of the SHEF dataset in 1980, states provided, on average, $9,068 per FTE in education
appropriations to public institutions. From there, funding for higher education changed in responseto the economic cycle, declining during economic recessions but overall growing (on a per-FTE
basis) during the next two decades. In fiscal year 2000, education appropriations reached an
inflation-adjusted high of $10,489 per FTE. Since that peak, however, education appropriations
have declined, down 11.1% ($1,162 per student) over the last 21 years.
The downward trend in education appropriations has not been linear. Funding reached arecord low of $7,232 per FTE in 2012 following declines during the Great Recession. Since thattime, appropriations have increased for nine consecutive years. Over the last year, education
appropriations increased 4.5% beyond inflation ($400 per FTE) to $9,327. This represents the largest
increase in state funding since 2014, when state funding increased 4.8% in one year following thesteep cuts of the Great Recession.
Overall, appropriations have increased 29.0%, or $2,095 per FTE, since the low point in 2012.
Nine years after the all-time low in state funding, education appropriations in 2021 are now only
1.2% ($112 per FTE) below pre-recession funding levels in 2008. This year’s increase in education
appropriations can be attributed to three notable trends:

14. Visit the SHEF website (shef.sheeo.org) for a fully interactive version of Figure 2.1.
15. The funding levels and trends over time shown in the U.S. wave chart differ substantially by state.

SHEEO: STATE HIGHER EDUCATION FINANCE: FY 2021

25

1. Increasing state commitments to higher education funding.
2. A sharp decline in FTE enrollment.
3. Federal stimulus funding given to states to protect their revenues and support
additional costs due to the COVID-19 pandemic and economic recession.
The green bars in Figure 2.1 show net tuition revenue per FTE over time. Net tuition revenue
measures tuition and fee revenue at public institutions, excluding state and institutional financial
aid. Unlike education appropriations, net tuition has increased steadily over time, with an averageannual net increase of 2.6% above inflation since 1980.
However, after reaching an all-time high in 2018, tuition revenue per FTE has decreased for threeconsecutive years: 3.6% in 2019, 0.2% in 2020, and 3.2% in 2021. Notably, this is only the second
time period in which there have been declines in net tuition revenue per FTE since the SHEF dataset
began in 1980. Prior to the last two years, the only times net tuition revenue per FTE declined were
fiscal years 2000 and 2001, two years immediately preceding an economic recession. The fiscal
year 2021 decline is partially, but not entirely, explained by increases in state public financial aid(which is excluded from net tuition revenue). In 2021, public institutions received, on average,$6,723 per FTE in net tuition revenue.
The total of the bars in the wave chart shows the approximate total education revenue available
to public institutions on a per-student level. Total education revenue combines the two primary
funding sources for public higher education—education appropriations and net tuition. In 2021,
total education revenue increased 1.1% to $15,959 per FTE, an all-time high. On average, institutions
have more than made up for prior recessionary declines in education appropriations by increasing
net tuition revenue.

SHEEO: STATE HIGHER EDUCATION FINANCE: FY 2021

26

FIGURE 2.1
PUBLIC FTE ENROLLMENT, EDUCATION APPROPRIATIONS PER FTE, AND NET TUITIONREVENUE PER FTE, U.S., FY 1996-2021 (CONSTANT DOLLARS)
14.0$18,000$16,000$6,723$6,961$6,946$7,219$7,176$7,057$6,909$6,741$6,599$6,188$5,521$5,747$5,225$5,278$5,125$5,045$4,824$4,603$4,229$4,369$4,274$4,223$4,391$4,385$4,358$10,000$9,327$8,927$8,617$8,355$8,376$8,174$8,040$7,726$7,369$7,232$8,374$7,930$9,439$8,803$9,266$9,094$8,711$8,733$9,963$9,300$10,386$10,489$10,297$9,608$9,941

6.0$6,000$4,00010.0

8.0$8,000$9,267

DOLLARS PER FTE$12,000$4,294$14,000

4.0

PUBLIC FTE ENROLLMENT (MILLIONS)

12.0

2.0

$2,0000.0

EDUCATION APPROPRIATIONS PER FTE(CONSTANT $)NET TUITION REVENUE PER FTE(CONSTANT $)

2021

2019

2020

2017

2018

2015

2016

2013

2014

2012

2011

2010

2009

2008

2007

2006

2005

2004

2003

2002

2001

1999

2000

1997

1998

1996

$-

FTE ENROLLMENT(MILLIONS)NOTES:
1. Education appropriations are a measure of state and local support available for public higher education operating expenses andstudent financial aid, excluding appropriations for research, hospitals, and medical education. Education appropriations include
federal stimulus funding.
2. Net tuition revenue is calculated by taking the gross amount of tuition and fees, less state and institutional financial aid, tuition
waivers or discounts, and medical student tuition and fees.
3. Full-time equivalent enrollment converts student credit hours to full-time, academic year students, but excludes medical students.
4. Constant 2021 dollars adjusted by the Higher Education Cost Adjustment (HECA).
SOURCE: State Higher Education Executive Officers Association

Economic recessions profoundly impact state funding for higher education. Higher education isviewed as a discretionary item in state budgets and, traditionally, has been disproportionately cut
compared to other state budget areas.16 During economic recessions prior to 2020, state funding
declined as states either cut funding to higher education or failed to keep up with inflation andenrollment increases. Over time, funding declines due to economic recessions have chippedaway at the base of state support for higher education.
Figure 2.2 provides a more detailed look at the impact of economic recessions on state higher
education appropriations. In this figure, we begin each recessionary period at zero and track the
cumulative percentage change over the course of the economic recession and recovery. With
each recession until the most recent one in 2020, state support declines per FTE grew steeper
and recoveries became slower and incomplete. However, the trend of education appropriations
declining immediately following an economic recession has reversed this year, after there was no

16. Delaney, J., & Doyle, W. (2011). State spending on higher education: Testing the balance wheel over time. Journal of Education Finance,
36(4). www.jstor.org/stable/23018116

SHEEO: STATE HIGHER EDUCATION FINANCE: FY 2021

27

decline following the COVID-19 pandemic-induced short economic recession in 2020.17 From2020 to 2021, education appropriations increased 4.5% (the short straight line in Figure 2.2),
thanks in large part to federal stimulus funding that helped fill state budget shortfalls, reducing
the need to defer funding from higher education to other budget areas. The federal government
also provided specific funds to states to use on education, which many states allocated, in part, tohigher education. See Measurement Note: Federal Stimulus Funding for more information.
Even without federal stimulus funding given to states and allocated to higher education, funding
would have increased 2.0% per FTE from 2020 to 2021. This increase is because, unlike during
past recessions, FTE enrollment declined this year. Had FTE enrollment held constant and federal
stimulus funding not come through for states, education appropriations would have declined
1.0% this year.
FIGURE 2.2
CUMULATIVE ANNUAL PERCENT CHANGE IN PUBLIC EDUCATION APPROPRIATIONS PER FTEFOLLOWING ECONOMIC RECESSIONS, U.S., FY 1980-2021 (CONSTANT DOLLARS)
15%

10.4%

10%

6.4%

5%

4.5%

0%
-5%
-10%

-7.9%

-10.8%

-15%
-20%
-25%

2021

2020

2019

2017

2018

2015

2016

2013

2014

2011

2012

2010

2009

2008

2007

2005

2006

2003

2004

2001

2002

1999

2000

1997

RECESSION

1998

1995

1996

1993

1994

1991

1992

1990

1989

1987

1988

1985

1986

1983

1984

1981

1982

1980

-30%

EDUCATION APPROPRIATIONSNOTES:
1. Cumulative annual percent change calculated since the start of each recession (1980, 1990, 2001, 2008, and 2020).
2. Education appropriations are a measure of state and local support available for public higher education operating expenses andstudent financial aid, excluding appropriations for research, hospitals, and medical education. Education appropriations include
federal stimulus funding.
3. Full-time equivalent enrollment converts student credit hours to full-time, academic year students, but excludes medical students.
4. Constant 2021 dollars adjusted by the Higher Education Cost Adjustment (HECA).
SOURCE: State Higher Education Executive Officers Association

2. STATE COMPARISONS
Education appropriations and net tuition revenue per FTE vary considerably by state. Figure 2.3
provides an expanded view of the Figure 2.1 wave chart for all states in fiscal year 2021. States range
widely in their total revenue (the sum of the blue and green bars) and the distribution of revenue
that comprises that total. For example, Nevada had the lowest total revenue per FTE, but 71.8%
of total revenue came from state funding. Louisiana had similar total revenue, and only 52.6% offunding came from education appropriations. At the other end of the spectrum, Delaware andWyoming had some of the highest total revenues, yet they could not be more different in where
they get those funds; the state provided 30.0% of total education revenue in Delaware compared
to 89.0% in Wyoming.

17. National Bureau of Economic Research. (2021). Business cycle dating committee announcement July 19, 2021. www.nber.org/news/
business-cycle-dating-committee-announcement-july-19-2021

SHEEO: STATE HIGHER EDUCATION FINANCE: FY 2021

28

FIGURE 2.3
EDUCATION APPROPRIATIONS AND NET TUITION REVENUE PER FTE BY STATE, FY 2021
(ADJUSTED)
5.0K

$35

$25
$20
$15
$10
$5
$0

3.3K

$30

NEVADA
6.5K 2.6K
2.3K
FLORIDA
8.3K
LOUISIANA 6.2K 5.6K
2.5K
CALIFORNIA
9.9K
NEW HAMPSHIRE 4.4K
9.5K
WEST VIRGINIA
6.3K
7.6K
OKLAHOMA 5.8K
8.1K
MONTANA
7.6K
6.9K
TEXAS
9.0K
5.6K
UTAH
8.7K
6.0K
GEORGIA
9.8K
5.0K
NEW JERSEY
7.8K
7.4K
RHODE ISLAND 6.1K
9.1K
MASSACHUSETTS
9.6K
5.6K
ARIZONA
6.2K
9.1K
WASHINGTON
10.3K
5.5K
COLORADO 5.5K
10.3K
MAINE
8.7K
7.1K
KANSAS
8.7K
7.2K
ARKANSAS
8.9K
7.1K
7.4K
OREGON
8.6K
9.3K
6.7K
U.S.
7.2K
8.9K
VIRGINIA
8.2K
8.0K
MISSISSIPPI
11.1K
5.1K
NORTH CAROLINA
10.1K
IOWA 6.1K
9.1K
7.3K
WISCONSIN
7.7K
8.7K
SOUTH DAKOTA
10.4K
INDIANA 6.4K
9.1K
7.8K
MARYLAND
10.8K
PENNSYLVANIA 6.1K
9.5K
7.5K
MISSOURI
7.6K
9.7K
OHIO
7.9K
9.3K
KENTUCKY
11.1K
7.0K
NEBRASKA
12.4K
5.8K
NEW YORK
13.9K
4.4K
HAWAII
7.6K
10.7K
SOUTH CAROLINA
11.4K
7.0K
TENNESSEE
15.1K
3.7K
NEW MEXICO
10.6K
8.5K
IDAHO
9.1K
10.6K
NORTH DAKOTA
7.7K
13.7K
ALABAMA
11.3K
10.3K
CONNECTICUT
11.8K
9.9K
MINNESOTA
17.5K
5.1K
ALASKA
7.4K
15.4K
VERMONT
8.2K
14.9K
MICHIGAN
7.0K
16.5K
DELAWARE
18.8K
8.0K
ILLINOIS
26.4K
WYOMING
34.5K
D.C.

DOLLARS PER FTE (THOUSANDS)$40

EDUCATION APPROPRIATIONS PER FTE

AZWANET TUITION REVENUE PER FTENOTES:
1. Education appropriations are a measure of state and local support available for public higher education operating expenses and student financial aid,
excluding appropriations for research, hospitals, and medical education. Education appropriations include federal stimulus funding.
2. Net tuition revenue is calculated by taking the gross amount of tuition and fees, less state and institutional financial aid, tuition waivers or discounts,
and medical student tuition and fees.
3. The U.S. calculation does not include the District of Columbia.
4. Adjustment factors to account for interstate differences include the Cost of Living Index (COLI) and Enrollment Mix Index (EMI).
The COLI is not a measure of inflation over time.
SOURCE: State Higher Education Executive Officers Association

STATE SPOTLIGHT: ILLINOIS
IL
MI

AZ

NH

NC

KY

FL

Education appropriations per FTE in Illinois continue to be an outlier at twice the U.S.
average and 32.6% above 2000 levels (the U.S. high point). The significant increase inappropriations over the last decade is driven largely by the state’s efforts to address
its historically underfunded state retirement pension system.
In 2021, 41.9% of all education appropriations in Illinois went to their state retirement
pension system. Of the $2.0 billion in pension payments, 77.7% was used for past
unfunded liabilities, not current employees. This means that even after considering
additional funding from local governments, over one quarter (29.4%) of
IL all education
appropriations in Illinois are now spent on past pension
EDUCATION APPROPRIATIONS
obligations and are not available for use in 2021. This translates
USED FOR PENSIONS
to roughly $5,500 per FTE student, more than the entire per2021
FTE appropriation in either Colorado or New Hampshire.
41.9%
A SHEF Issue Brief18 on Illinois from the 2018 SHEF reportprovides more detail on the funding situation in Illinois over time.

2009:
12.4%

CO

CA

18. shef.sheeo.org/wp-content/uploads/2020/04/SHEEO_SHEF_FY18_IB_Illinois.pdf

FEDERAL CONTRIBUTIONS TOEDUCATION APPROPRIATIONS PER FTE
19%

SHEEO: STATE HIGHER EDUCATION FINANCE: FY 2021

46%

42%
13%

29

3. SECTOR COMPARISONS
Public higher education revenue also varies across public two-year and public four-year
institutions. Figure 2.4 shows higher education revenues for public two-year and four-year
institutions separately. Currently, only data from 2019 through 2021 are available. In future years,
this figure will expand to show longer trends over time.
As shown in Figure 2.4, 2021 education appropriations at two-year public institutions are slightly
above the per-FTE levels at four-year institutions ($9,347 and $8,859, respectively). 19 In large part,the difference in education appropriations per FTE between two- and four-year public institutions
is because SHEF data reported here include local appropriations, which primarily support twoyear institutions, but do not include research, agricultural extension, and medical funding (RAM),of which an additional $1,690 per FTE was exclusively appropriated to four-year institutions in
2021. In addition, SHEF metrics use FTE enrollment rather than student headcount, and two-year
institutions have a far greater proportion of part-time students.20
Education appropriations per FTE throughout the report include federal stimulus funding. Twoyear institutions received $214 per FTE in federal stimulus for public operating in 2021, and fouryear institutions received $288 per FTE in federal stimulus for public operating.
Unlike education appropriations, net tuition revenue is very different at two- and four-year
institutions. On average, two-year institutions received $2,604 in net tuition revenue per FTE, or
28.0% of the average net tuition revenue per FTE at four-year institutions ($9,295). As a result, fouryear institutions have, on average, much higher total revenues with which to educate students
than two-year institutions.

19. There are several differences in education appropriations between the state and sector levels. The state-level data include agency
funding and all federal stimulus funding allocated to public institutions. The sector-level data exclude agency funding, and include only
the federal stimulus funding allocated to two-year or four-year public operating. In a few states, some uncategorizable state support anduncategorizable financial aid could not be allocated to either sector.
20. According to the National Center for Education Statistics, in fall 2021, an estimated 37% of two-year students (at both public and private
institutions) attended full time, compared to 74% at four-year institutions. Source: Table 303.70, nces.ed.gov/programs/digest/d21/tables/
dt21_303.70.asp?current=yes.

SHEEO: STATE HIGHER EDUCATION FINANCE: FY 2021

30

FIGURE 2.4
PUBLIC EDUCATION APPROPRIATIONS AND NET TUITION REVENUE PER FTE BY SECTOR,
U.S., FY 2019-2021 (CONSTANT DOLLARS)$20,000$18,000

DOLLARS PER FTE

DOLLARS PER FTE$16,000$14,000$9,809$9,767$9,295$8,806$8,8592020

2021$12,000$10,000$2,604$2,752$2,649$8,156$8,422$9,347$8,565

2020

2021

2019

$8,000$6,000$4,000$2,000$-2019

TWO-YEAREDUCATION APPROPRIATIONS PER FTE(CONSTANT $)FOUR-YEARNET TUITION REVENUE PER FTE(CONSTANT $)NOTES:
1. Education appropriations are a measure of state and local support available for public higher education operating expenses andstudent financial aid, excluding appropriations for research, hospitals, and medical education. Sector-level education appropriations
include any portion of federal stimulus funding allocated specifically to each sector, but exclude state agency funding.
2. Net tuition revenue is calculated by taking the gross amount of tuition and fees, less state and institutional financial aid, tuition
waivers or discounts, and medical student tuition and fees.
3. Full-time equivalent enrollment converts student credit hours to full-time, academic year students, but excludes medical students.
4. Constant 2021 dollars adjusted by the Higher Education Cost Adjustment (HECA).
SOURCE: State Higher Education Executive Officers Association

Education appropriations shown in the above sections include funding for institutions (generalpublic operations) as well as funding for student financial aid. The following section explores the
proportion of education appropriations allocated to student financial aid.

FINANCIAL AID PERCENTAGE OF EDUCATION APPROPRIATIONSStates allocate financial aid to students attending both public (79.8%) and private (19.6%) institutions.
A small portion of financial aid (0.3%) is allocated to students attending out-of-state institutions.
SHEF focuses specifically on state funding for public institutions, and financial aid to independentand out-of-state institutions is excluded from education appropriations.21 This section examines
state financial aid for students attending public in-state institutions.
Figure 2.5 shows the change in state financial aid for students at public institutions over time.
Unlike the rest of education appropriations, state public financial aid has increased consistently
over time.
• On a per-FTE basis and after adjusting for inflation, state financial aid to public
institutions has increased 75.6%, from $525 in 2001 (when these data were firstcollected) to $921 in 2021. State aid increased 8.8% in the last year alone.

21. Trends in state-funded student financial aid for students attending public institutions differ substantially from trends in aid for students
attending independent institutions. The composition of state financial aid has also changed over time. For more information, the 2019
SHEF Issue Brief (shef.sheeo.org/wp-content/uploads/2020/04/SHEEO_SHEF_FY19_IB_Financial_Aid.pdf) on state financial aid explores
trends over time in state financial aid to public and private institutions by state.

SHEEO: STATE HIGHER EDUCATION FINANCE: FY 2021

31

• SHEF data show that states primarily protect financial aid during economic
downturns. During the worst years of the Great Recession, from 2008 to 2012,aid per FTE increased 4.4% despite rapidly increasing enrollment, while the restof education appropriations declined. As a result, the financial aid allocation
increased from 7.0% to 9.5% of all education appropriations. Similarly, following
the short recession in 2020, public aid grew from 9.5% to 9.9% of all education
appropriations.
• In 2021, aid to public institutions comprised 9.9% of all education
appropriations, up from 5.1% in 2001.

FIGURE 2.5
PUBLIC HIGHER EDUCATION STATE FINANCIAL AID PER FTE AND AS A PERCENTOF EDUCATION APPROPRIATIONS, U.S., FY 2001-2021 (CONSTANT DOLLARS)
20%

$900

18%

14%
12%

9.9%

9.5%

9.3%

9.1%

8.4%

8.9%

9.1%

8.8%

8.7%

9.5%

8.6%

8.0%

7.6%

7.0%

8%
6%
4%

PUBLIC FINANCIAL AID PER FTE (CONSTANT $)

2021

2020

2019

2018

2017

2016

2015

2014

2013

2012

2011

2010

2009

2008

2007

2006

2005

0%

2004

$-

2003

2%

2002

$100

2001

PERCENT

$799

$762

$702

$725

$677

$641

$688

$682

$673

$667

$659

$652

16%

10%

7.0%

$631
6.9%

$606

$570
6.5%

5.8%

5.4%

$200

5.1%

$300

6.9%

$400

$536

$500

$534

$600

$525

DOLLARS PER FTE

$700

$729

$800

$847

$921

$1,000

PUBLIC FINANCIAL AID AS A PERCENT OF EDUCATION APPROPRIATIONSNOTES:
1. State public financial aid is any state appropriated student financial aid for public institutions, excluding loans and aid for students
attending medical schools. For many states, includes aid both for tuition costs and living expenses.
2. Financial aid data are not available prior to 2001. Over time, states have shifted from reporting appropriated student financial aid toreporting actual/awarded student financial aid (see measurement note). Any such updates are made to all historical data for each state.
3. Education appropriations are a measure of state and local support available for public higher education operating expenses andstudent financial aid, excluding appropriations for research, hospitals, and medical education. Education appropriations include
federal stimulus funding.
4. Constant 2021 dollars adjusted by the Higher Education Cost Adjustment (HECA).
SOURCE: State Higher Education Executive Officers Association

Despite increasing state allocations to student financial aid over the last several decades, student
contributions to higher education revenues have increased over time. However, in recent years,
simultaneous growth in education appropriations and declines in net tuition revenues haveresulted in small decreases in institutional reliance on student tuition dollars. In the next section,
we examine the student contribution to higher education, or the student share.

SHEEO: STATE HIGHER EDUCATION FINANCE: FY 2021

32

STUDENT SHARE
Figure 2.6 provides a comprehensive look at the reliance on net tuition as a revenue source—thestudent share. The measure of student share shows the proportion of total education revenue
from net tuition. Net tuition and fee revenue excludes state and institutional financial aid but does
not exclude federal financial aid or loans.
There has been a substantial shift of responsibility for financing public higher education toward
net tuition revenue (from 20.9% to 42.1%) since 1980. Historically, student share has increased
most rapidly during periods of economic recession, shifting more of higher education costs tostudents and families. The student share grew rapidly during the Great Recession, increasing from
35.8% in 2008 to an all-time high of 47.5% in 2013. During this time, students and their families
turned to federal aid to cushion their growing share of higher education costs. From 2008 to 2012,
the proportion of students attending public institutions using federal Pell Grant aid increased from
23.2% to 37.8%. Of greater concern, the percentage of students using federal loans increased from
23.7% to 30.1% during that time.22
When the economy stabilizes, the student share also stabilizes and, as in recent years, decreases.
Since the 2013 high point, the student share has declined 5.4 percentage points to 42.1% in
2021. In the last year, the student share declined 1.9 percentage points, the largest decrease
ever observed in the SHEF dataset. Decreases in student share occur when growth in education
appropriations outpaces growth in net tuition revenue. This year’s decrease in student shareis due to declines in FTE enrollment and net tuition revenue as well as the increase in federal
stimulus funding allocated to higher education. This downward trend may change in upcoming
years as federal stimulus funding is depleted and FTE enrollment declines level out.
There are regional differences in the student share, but the overall trend of sharp increases during
past economic recessions holds across each region. Additionally, from 2020 to 2021, the student
share declined in each region: 2.7 percentage points in the West, 2.4 in the Midwest, 1.5 in the
Northeast, and 1.2 in the South. Historically and today, the student share is highest in the Midwest
and Northeast, while the South tracks closely to the U.S. average, and the West has the lowest
regional student share (Figure 2.6).

22. These data were compiled from the U.S. Department of Education, National Center for Education Statistics, 2007-08 National
Postsecondary Student Aid Study (NPSAS:08) and the U.S. Department of Education, National Center for Education Statistics, 2011-12
National Postsecondary Student Aid Study (NPSAS:12).

SHEEO: STATE HIGHER EDUCATION FINANCE: FY 2021

33

FIGURE 2.6
NET TUITION AS A PERCENT OF TOTAL EDUCATION REVENUE, U.S., FY 1980-2021

STUDENT SHARE

60%

50%

MIDWEST, 50.0%

40%

NORTHEAST, 45.4%
SOUTH, 43.0%
U.S., 42.1%

WEST, 32.2%

30%

20%

10%

1980
1981
1982
1983
1984
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021

0%

RECESSIONNOTES:
1. The student share is a measure of the proportion of total education revenue at public institutions coming from net tuition revenue.
Net tuition revenue used for capital debt service is included in net tuition revenue, but excluded from total education revenue incalculating the above figures. Total education revenue includes federal stimulus funding.
2. Regional averages are based on the U.S. Census designation.
SOURCE: State Higher Education Executive Officers Association

Throughout the rest of the SHEF report, we more closely examine current and long-term U.S.,
state, and sector-level trends in each individual component of state funding, enrollment, net
tuition, and total revenue.

SHEEO: STATE HIGHER EDUCATION FINANCE: FY 2021

34

STATE FUNDING AND ENROLLMENT
There is wide variation in higher education finance across states. This section more deeply
examines trends and interstate differences for measures of enrollment and state funding(education appropriations and student financial aid). For the second year, we also present sectorlevel breakouts for each of these metrics.

STUDENT ENROLLMENT
Full-time equivalent (FTE) enrollment converts student credit hours to full-time, academic
year students, but excludes medical students. SHEF includes enrollment for all degree-seeking
undergraduate and graduate students at public institutions. For many years, enrollment remained
relatively stable both nationally and across states. However, with the onset of the COVID-19
pandemic in early 2020, enrollment declined across sectors.23 Visit the SHEF website to view theinteractive FTE enrollment map.24 This map shows net FTE enrollment across the nation and overtime.
NET FTE ENROLLMENTIN FY 2021

FTE enrollment has broadly increased since the start of the SHEF dataset in 1980. In 1980, U.S.
public institutions enrolled 6.85 million FTE students. Historically, enrollment has increased ineach decade, reaching:• 7.77 million in 1990.
• 8.38 million in 2000.
• 11.38 million in 2010.
However, the last decade has reversed this trend. Enrollment increased rapidly during and
immediately following the Great Recession and peaked at 11.65 million students in 2011. Since
2011, FTE enrollment has declined for ten straight years to 10.60 million in 2021. In recent years(since 2015), these declines have been less than 1.0% annually. However, in the last year, the
COVID-19 pandemic led to a 3.0% decline in FTE enrollment from 2020 to 2021. This corresponds

23. National Student Clearinghouse Research Center. (2021). Fall 2021 enrollment (as of October 21). nscresearchcenter.org/stay-informed
24. shef.sheeo.org/data-visualizations/map-3-1/?report_page=state-funding-and-enrollment&modal=map-3_1

SHEEO: STATE HIGHER EDUCATION FINANCE: FY 2021

35

to a loss of 323,952 students, the largest decline since the start of the SHEF dataset in 1980. As aresult, in 2021, public institutions enrolled 10,600,381 FTE students, down 9.0% from the peak in
2011, but still 3.3% above 2008 levels.

1. STATE COMPARISONS
Figure 3.1 shows net FTE enrollment for each state in fiscal year 2021. Table 3.1 provides additional
detail on how enrollment has changed over time in each state.
• Across the states, FTE enrollment ranged from roughly 2,700 students inWashington, D.C., and 13,700 in Alaska to 1.6 million in California. Only
California and Texas had more than 1 million FTE enrolled students in 2021,
and 25% of all students attending a public institution in the U.S. attended an
institution in either California or Texas.
• Enrollment declined in 47 states and Washington, D.C., between 2020 and
2021, more than in any other year. These declines ranged from 0.02% in South
Dakota (representing only 5 FTE) to 8.7% in Alaska (1,312 FTE) and 14.6% inWashington, D.C. (465 FTE). Enrollment declines were greater than 5.0% in 16
states and Washington, D.C.
• Enrollment increased in only three states: Illinois (0.9%), Utah (1.2%), andDelaware (2.4%).
• Enrollment has declined in 43 states and Washington D.C., since 2011, but inonly one state compared to the start of the SHEF dataset: FTE enrollment inIllinois has declined 10.7% since 1980.

FIGURE 3.1
PUBLIC HIGHER EDUCATION FULL-TIME EQUIVALENT (FTE) ENROLLMENT BY STATE, FY 2021
1,800,000

1.6 Million
1,600,000
1,400,000
1,200,000
1,000,000
800,000
600,000
400,000
200,000

2,711
D.C.
ALASKA
VERMONTWYOMINGRHODE ISLANDNORTH DAKOTA
SOUTH DAKOTANEW HAMPSHIRE
MAINE
MONTANAHAWAIIDELAWARE
IDAHO
WEST VIRGINIANEW MEXICONEBRASKACONNECTICUTNEVADA
ARKANSASIOWAMISSISSIPPIKANSAS
OKLAHOMAUTAH
OREGONKENTUCKYMASSACHUSETTSMISSOURILOUISIANA
SOUTH CAROLINAMINNESOTATENNESSEE
COLORADOALABAMA
WISCONSINMARYLANDWASHINGTONINDIANANEW JERSEYARIZONAVIRGINIAILLINOISPENNSYLVANIAMICHIGANGEORGIAOHIONORTH CAROLINANEW YORKFLORIDATEXASCALIFORNIA0NOTES:
1. Full-time equivalent enrollment converts student credit hours to full-time, academic year students, but excludes medical students.
SOURCE: State Higher Education Executive Officers Association

SHEEO: STATE HIGHER EDUCATION FINANCE: FY 2021

36

TABLE 3.1
PUBLIC HIGHER EDUCATION FULL-TIME EQUIVALENT (FTE) ENROLLMENT BY STATE,FY 1980-2021
2016

2020

2021

% CHANGE
SINCE 2020

% CHANGE
SINCE 2016

% CHANGE
SINCE 2011

% CHANGE
SINCE 2001

% CHANGE
SINCE 1980

138,620
165,833
212,758
195,536
10,53016,07921,09019,269120,148
194,629
275,071
279,239
53,13087,337124,085
117,112979,142 1,322,308 1,580,877 1,584,280
113,281
141,492
195,621
180,264
58,90960,97686,28185,705
20,66428,94434,64836,472
287,388
420,957
636,320
598,660
157,155
234,998
386,534
346,741
30,46531,81040,74338,414
26,64739,49553,201
52,744
342,097
323,876
393,313342,422
142,061
193,130
273,322249,925
84,210105,545
132,744
132,748
87,216
100,476
141,031
135,366
89,389119,500
159,806
149,314106,686
168,121
183,633
167,897
26,25029,28738,28434,604133,228
175,085
238,742
234,124
122,952
128,404
168,671
169,189
318,166
333,584435,592
380,128
149,418
167,238214,342
193,197
85,292
102,490
138,859
128,728
120,468
156,588
197,890
192,781
25,452
33,66040,961
37,95256,36065,72584,38476,442
19,367
48,107
69,16974,451
19,41526,50639,03636,640171,390
178,671
277,147
268,296
48,26866,847
92,07893,379418,679
449,959
578,830
556,312
165,642
266,217425,779
388,322
26,73531,922
37,91536,165
291,000
337,379
460,747
388,777
96,476
121,111150,171
134,960
96,946
111,006
168,374
151,544
243,296288,334
374,997
350,435
23,23725,62233,062
32,063
95,600132,404
172,375
171,202
18,62322,06433,31333,674
124,022
159,838
193,994
183,251
466,900
667,534
979,943 1,020,366
47,061
91,953125,073
122,066
13,656
15,914
22,57820,429175,197
236,014321,965
310,368
163,866
204,663
261,485
240,788
53,331
62,902
81,11671,026
174,163
196,523
240,625
217,856
14,04820,19826,392
23,812
6,852,242 8,709,255 11,654,967 11,085,435
N/A
N/A
3,659
4,041

200,991
15,051
314,892
110,945
1,611,971
188,864
81,42235,571
609,456
360,193
34,73655,155
302,722245,224
125,433
129,622
140,429
165,145
34,005
221,418
156,878
357,275
180,442
127,142
163,408
35,252
73,83378,164
34,695
261,616
70,090524,708
403,093
32,660385,027
126,370
137,801
331,077
32,088
168,719
31,962
184,992
1,071,308
127,833
20,562
301,730
228,720
65,445
206,545
21,653
10,924,333
3,176

194,930
13,739292,192
105,044
1,608,718
179,676
74,53836,409595,444356,921
34,151
53,699305,508
237,621118,991
123,169
137,574
163,735
32,862
213,324
145,913343,596
171,312
121,550
156,493
33,45972,56475,87332,348252,098
65,855494,065
392,374
31,900374,222
123,954
129,767
309,837
31,426
164,276
31,957
178,618
1,044,747
129,310
19,509298,864
214,902
62,038198,362
20,947
10,600,381
2,711

-3.0%
-8.7%
-7.2%
-5.3%
-0.2%
-4.9%
-8.5%
2.4%
-2.3%
-0.9%
-1.7%
-2.6%
0.9%
-3.1%
-5.1%
-5.0%
-2.0%
-0.9%
-3.4%
-3.7%
-7.0%
-3.8%
-5.1%
-4.4%
-4.2%
-5.1%
-1.7%
-2.9%
-6.8%
-3.6%
-6.0%
-5.8%
-2.7%
-2.3%
-2.8%
-1.9%
-5.8%
-6.4%
-2.1%
-2.6%
0.0%
-3.4%
-2.5%
1.2%
-5.1%
-0.9%
-6.0%
-5.2%
-4.0%
-3.3%
-3.0%
-14.6%-0.3%-28.7%
4.6%-10.3%
1.5%-0.3%-13.0%
-0.2%
-0.5%
2.9%
-11.1%
1.8%-10.8%-4.9%-10.4%
-9.0%
-7.9%
-2.5%
-5.0%
-8.9%
-13.8%-9.6%-11.3%-5.6%-18.8%-11.8%-5.1%
1.9%-11.7%-6.0%-29.5%-11.2%
1.0%-11.8%-3.7%-8.2%-14.4%-11.6%
-2.0%
-4.0%
-5.1%
-2.5%
2.4%
5.9%
-4.5%
-3.7%
-10.8%-12.7%-8.9%-12.0%-4.4%-32.9%-8.4%-34.9%
6.2%-15.3%
1.8%-8.2%-13.6%
5.1%
-6.4%
-7.7%
-16.2%
0.9%-22.3%-13.1%-10.4%-12.7%-13.9%-10.8%-14.2%-10.6%-13.5%-21.1%-20.1%-12.5%-20.9%-18.3%-14.0%
9.7%-17.1%-9.0%-28.5%-14.6%-7.8%-15.9%-18.8%-17.5%-22.9%-17.4%
-4.9%
-4.7%
-4.1%
-7.9%
6.6%
3.4%
-13.6%-7.2%-17.8%-23.5%-17.6%-20.6%-9.0%-25.9%

17.5%-14.6%
50.1%
20.3%
21.7%
27.0%
22.2%
25.8%
41.5%
51.9%
7.4%
36.0%
-5.7%
23.0%
12.7%
22.6%
15.1%
-2.6%
12.2%
21.8%
13.6%
3.0%
2.4%
18.6%
-0.1%
-0.6%
10.4%
57.7%
22.0%
41.1%
-1.5%
9.8%
47.4%
-0.1%
10.9%
2.3%
16.9%
7.5%
22.7%
24.1%
44.8%
11.7%
56.5%
40.6%
22.6%
26.6%
5.0%
-1.4%
0.9%
3.7%
21.7%
N/A

40.6%
30.5%
143.2%
97.7%
64.3%
58.6%
26.5%
76.2%
107.2%
127.1%
12.1%
101.5%-10.7%
67.3%
41.3%
41.2%
53.9%
53.5%
25.2%
60.1%
18.7%
8.0%
14.7%
42.5%
29.9%
31.5%
28.8%
291.8%
66.6%
47.1%
36.4%
18.0%
136.9%
19.3%
28.6%
28.5%
33.9%
27.3%
35.2%
71.8%
71.6%
44.0%
123.8%
174.8%
42.9%
70.6%
31.1%
16.3%
13.9%
49.1%
54.7%
N/A

1980
ALABAMAALASKA
ARIZONA
ARKANSASCALIFORNIACOLORADOCONNECTICUT
DELAWARE
FLORIDAGEORGIAHAWAIIIDAHOILLINOISINDIANAIOWAKANSASKENTUCKYLOUISIANA
MAINE
MARYLANDMASSACHUSETTSMICHIGANMINNESOTAMISSISSIPPIMISSOURIMONTANANEBRASKA
NEVADANEW HAMPSHIRENEW JERSEYNEW MEXICONEW YORKNORTH CAROLINANORTH DAKOTAOHIO
OKLAHOMA
OREGONPENNSYLVANIARHODE ISLAND
SOUTH CAROLINA
SOUTH DAKOTATENNESSEE
TEXAS
UTAH
VERMONTVIRGINIAWASHINGTONWEST VIRGINIA
WISCONSINWYOMING
U.S.
D.C.

2001

2011

NOTES:
1. Full-time equivalent enrollment converts student credit hours to full-time, academic year students, but excludes medical students.
2. The U.S. calculation does not include the District of Columbia. Data for the District of Columbia are not available prior to 2011.
3. The years 1980 and 2001 are included in this table because they are the starting points of the historical SHEF dataset and modern
SHEF data collection, respectively.
SOURCE: State Higher Education Executive Officers Association

SHEEO: STATE HIGHER EDUCATION FINANCE: FY 2021

37

2. SECTOR COMPARISONS
Table 3.1A presents data on net FTE enrollment for the public two-year and four-year sectors
separately. In 2021, there were 4.04 million FTE enrolled students at two-year institutions. Alaska
and Washington, D.C., have no public two-year institutions. Two-year enrollment across all otherstates ranged from 2,482 FTE in Vermont to 917,528 FTE in California. Twenty-three percent ofstudents attending a U.S. public two-year institution in 2021 attended an institution in California.
• In the last year, enrollment declined 6.1% at two-year institutions. Forty-fourstates had declines, 11 of which were greater than 10%. The largest two-year
FTE enrollment declines were in Connecticut (18.1%), Arizona (15.7%), West
Virginia (14.6%), and New Mexico (14.5%).
• Two-year FTE enrollment increased in only five states from 2020 to 2021: South
Dakota (0.2%), Delaware (0.9%), Illinois (2.3%), Oklahoma (2.6%), and Ohio (6.1%).
There were 6.56 million FTE enrolled students at four-year institutions in 2021, about 1.6 times
the number of two-year students. Enrollment at four-year institutions ranged from 2,711 in
Washington D.C., and 10,145 in Wyoming to 691,191 in California. Notably, Texas had the second
highest FTE enrollment of students attending four-year institutions (599,455), but less than half
as many two-year students as California. California represents about one-tenth of all four-year
public enrollment.
• From 2020 to 2021, FTE enrollment declined 0.9% at four-year institutions.
Thirty-five states and Washington, D.C., had declines. Only Washington, D.C.
(14.6%) was greater than 10%. The second and third largest declines were 8.7%
in Alaska and 6.1% in Ohio.
• Four-year FTE enrollment increased in 15 states from 2020 to 2021. The largest
increase was 2.8% in Delaware.
Thirty states had enrollment declines in both sectors, and the only state with increases in enrollment
across both sectors was Delaware. The two-year sector generally had larger enrollment declines
across states—in 43 states, enrollment took a larger hit in the two-year sector than in the four-year
sector from 2020 to 2021. However, in four states, enrollment declined in the four-year sector
only: Illinois, Ohio, Oklahoma, and South Dakota.
Figure 3.1A shows that states enroll different proportions of students across sectors. Overall,
38.1% of FTE students attended a two-year institution in the United States. The percentage of FTE
at two-year institutions varied from only 12.7% in Vermont to 57.0% in California. Only two states(California and Wyoming) had more FTE students enrolled in the two-year sector than in thefour-year sector.

SHEEO: STATE HIGHER EDUCATION FINANCE: FY 2021

38

FIGURE 3.1A
PERCENT OF PUBLIC HIGHER EDUCATION FULL-TIME EQUIVALENT (FTE) ENROLLMENT
ATTENDING TWO-YEAR INSTITUTIONS BY STATE, FY 2021
60%

57.0%

50%

38.1%

40%
30%
20%

12.7%
10%

CALIFORNIAFLORIDAWYOMINGILLINOISWASHINGTONIOWANORTH CAROLINA

NEW MEXICOTEXASMISSISSIPPIHAWAIIMINNESOTA

OREGONU.S.

KANSASNEVADATENNESSEENEW YORKMARYLANDNEW JERSEY

SOUTH CAROLINAVIRGINIAARIZONA

COLORADOMISSOURI

NEBRASKAMICHIGANOKLAHOMAOHIOKENTUCKYWISCONSINMASSACHUSETTSIDAHORHODE ISLAND

MAINE

CONNECTICUT

ALABAMA

ARKANSASINDIANANEW HAMPSHIRELOUISIANA

DELAWARE

GEORGIAPENNSYLVANIAUTAHNORTH DAKOTAMONTANA

SOUTH DAKOTAVERMONT

WEST VIRGINIA0%NOTES:
1. Full-time equivalent enrollment converts student credit hours to full-time, academic year students, but excludes medical students.
2. Alaska and the District of Columbia are excluded from this figure because they do not have any public two-year institutions.
3. Sector is determined at the institution level using the Carnegie Basic Classification (carnegieclassifications.acenet.edu).
Baccalaureate/Associate's Colleges and "less-than-two-year" degree-granting institutions not assigned a Carnegie classification are
considered two-year institutions.
4. Fiscal year 2021 two-year FTE is a projected amount for Illinois.
SOURCE: State Higher Education Executive Officers Association

MEASUREMENT NOTE: SECTOR ENROLLMENT MIX
States vary in the proportion of enrollment attending two-year and four-year public
institutions. In addition, as the following sections will show, the two-year and fouryear public sectors have very different revenue structures and total revenues. Thesevarying enrollment proportions and different revenue structures make state-level
data more difficult to compare. The Enrollment Mix Index (EMI) adjustment usedthroughout the state-level metrics in this report attempts to correct for this variation
in FTE enrollment. Sector-level data are not adjusted for EMI (and do not need to be).
See the SHEF website (shef.sheeo.org/data-definitions) to learn more about how theEMI adjustment is calculated.

SHEEO: STATE HIGHER EDUCATION FINANCE: FY 2021

39

TABLE 3.1A
PUBLIC HIGHER EDUCATION FULL-TIME EQUIVALENT (FTE) ENROLLMENT BY SECTOR AND
STATE, FY 2019-2021
TWO-YEAR FTE

ALABAMAALASKA
ARIZONA
ARKANSASCALIFORNIACOLORADOCONNECTICUT
DELAWARE
FLORIDAGEORGIAHAWAIIIDAHOILLINOISINDIANAIOWAKANSASKENTUCKYLOUISIANA
MAINE
MARYLANDMASSACHUSETTSMICHIGANMINNESOTAMISSISSIPPIMISSOURIMONTANANEBRASKA
NEVADANEW HAMPSHIRENEW JERSEYNEW MEXICONEW YORKNORTH CAROLINANORTH DAKOTAOHIO
OKLAHOMA
OREGONPENNSYLVANIARHODE ISLAND
SOUTH CAROLINA
SOUTH DAKOTATENNESSEE
TEXAS
UTAH
VERMONTVIRGINIAWASHINGTONWEST VIRGINIA
WISCONSINWYOMING
U.S.
D.C.

FOUR-YEAR FTE

2019

2020

2021

% CHANGE
SINCE 2020

59,288
0
110,557
31,641
938,182
56,00026,4198,886
315,763
86,54014,82015,992
140,71363,91357,23952,89543,44643,091
9,773
89,99049,799116,340
76,21958,29959,765
6,678
26,142
29,026
9,853
99,90437,798210,891
179,659
7,028
99,164
40,58560,77079,9799,333
57,624
5,810
72,783487,864
25,832
2,652
100,141
123,981
11,076
72,054
11,214
4,393,411
054,331
0
109,319
30,830930,195
61,55024,7798,412
312,291
86,454
14,411
15,235
136,458
62,78455,791
51,12443,53143,802
9,972
84,662
46,920108,318
74,26056,93851,524
6,386
24,09629,8909,059
97,36733,544200,823
186,8286,701
103,898
36,92756,052
78,2409,612
57,6485,839
72,808
485,422
24,933
2,569
96,823
117,118
11,03564,314
10,9404,302,763
051,745
092,151
27,633
917,528
56,515
20,295
8,486
291,691
77,837
13,697
14,782
139,651
58,77352,17647,17440,57939,608
8,925
76,48041,860102,319
69,472
52,232
48,416
5,964
22,681
27,955
8,066
87,901
28,678
174,908
174,757
6,493
110,206
37,88350,32071,0238,994
53,7305,848
66,125445,292
24,6582,482
94,137103,034
9,424
58,255
10,802
4,039,641
0

-4.8%
N/A
-15.7%-10.4%-1.4%-8.2%-18.1%
0.9%-6.6%-10.0%
-5.0%
-3.0%
2.3%
-6.4%
-6.5%
-7.7%
-6.8%
-9.6%
-10.5%-9.7%-10.8%
-5.5%
-6.4%
-8.3%
-6.0%
-6.6%
-5.9%
-6.5%
-11.0%-9.7%-14.5%-12.9%
-6.5%
-3.1%
6.1%
2.6%
-10.2%
-9.2%
-6.4%
-6.8%
0.2%
-9.2%
-8.3%
-1.1%
-3.4%
-2.8%
-12.0%-14.6%
-9.4%
-1.3%
-6.1%
N/A

% CHANGE
SINCE 2019

2019

2020

2021

% CHANGE
SINCE 2020

% CHANGE
SINCE 2019-12.7%
N/A-16.6%-12.7%-2.2%
0.9%-23.2%-4.5%-7.6%-10.1%
-7.6%
-7.6%
-0.8%
-8.0%
-8.8%
-10.8%
-6.6%
-8.1%
-8.7%
-15.0%-15.9%-12.1%-8.9%-10.4%-19.0%-10.7%-13.2%-3.7%-18.1%-12.0%-24.1%-17.1%
-2.7%
-7.6%
11.1%
-6.7%
-17.2%-11.2%
-3.6%
-6.8%
0.7%
-9.1%
-8.7%
-4.5%
-6.4%
-6.0%
-16.9%-14.9%-19.2%
-3.7%
-8.1%
N/A

143,485
16,721
182,299
81,697
672,687
127,744
57,374
27,524
293,197
269,808
20,43438,429166,254
182,388
72,14879,35898,556
120,841
24,174
139,253
110,528
249,975
108,148
71,200122,734
29,697
49,79847,39826,500162,374
39,242326,233
214,263
26,753
287,287
88,26083,519251,685
22,645
109,116
27,006111,689
578,843
102,270
17,806
201,878
112,000
55,501
137,600
10,9806,597,299
3,518

146,660
15,051
205,573
80,115
681,776
127,31456,64327,159297,165
273,739
20,32639,920166,264
182,441
69,64278,49896,897
121,344
24,033
136,756
110,527
248,957
106,182
70,204
111,884
28,86649,737
48,27325,636
164,249
36,546
323,886
216,265
25,959281,129
89,44381,749252,837
22,476
111,071
26,123112,184
585,886
102,901
17,993204,907
111,60254,410142,231
10,7136,622,142
3,176

143,185
13,739200,041
77,412
691,191
123,161
54,24327,923
303,753
279,084
20,45538,917
165,857
178,849
66,81575,99596,996
124,127
23,937
136,844
104,053
241,277
101,840
69,318108,077
27,49549,883
47,91824,282
164,197
37,176319,158
217,617
25,407
264,015
86,071
79,447
238,814
22,432
110,545
26,109112,493
599,455
104,654
17,027204,727
111,868
52,614140,108
10,1456,560,746
2,711

-2.4%
-8.7%
-2.7%
-3.4%
1.4%
-3.3%
-4.2%
2.8%
2.2%
2.0%
0.6%
-2.5%
-0.2%
-2.0%
-4.1%
-3.2%
0.1%
2.3%
-0.4%
0.1%
-5.9%
-3.1%
-4.1%
-1.3%
-3.4%
-4.7%
0.3%
-0.7%
-5.3%
0.0%
1.7%
-1.5%
0.6%
-2.1%
-6.1%
-3.8%
-2.8%
-5.5%
-0.2%
-0.5%
-0.1%
0.3%
2.3%
1.7%
-5.4%
-0.1%
0.2%
-3.3%
-1.5%
-5.3%
-0.9%
-14.6%-0.2%-17.8%
9.7%
-5.2%
2.8%
-3.6%
-5.5%
1.4%
3.6%
3.4%
0.1%
1.3%
-0.2%
-1.9%
-7.4%
-4.2%
-1.6%
2.7%
-1.0%
-1.7%
-5.9%
-3.5%
-5.8%
-2.6%
-11.9%
-7.4%
0.2%
1.1%
-8.4%
1.1%
-5.3%
-2.2%
1.6%
-5.0%
-8.1%
-2.5%
-4.9%
-5.1%
-0.9%
1.3%
-3.3%
0.7%
3.6%
2.3%
-4.4%
1.4%
-0.1%
-5.2%
1.8%
-7.6%
-0.6%
-22.9%NOTES:
1. Full-time equivalent enrollment converts student credit hours to full-time, academic year students, but excludes medical students.
2. The U.S. calculation does not include the District of Columbia. There are no two-year public institutions in Alaska or the Districtof Columbia.
3. Sector-level data are recently required components of the SHEF data collection and are not currently available for years prior to 2019.
4. Sector is determined at the institution level using the Carnegie Basic Classification (carnegieclassifications.acenet.edu).
Baccalaureate/Associate's Colleges and "less-than-two-year" degree-granting institutions not assigned a Carnegie classification
are considered two-year institutions.
5. Fiscal year 2021 two-year FTE is a projected amount for Illinois.
SOURCE: State Higher Education Executive Officers Association

SHEEO: STATE HIGHER EDUCATION FINANCE: FY 2021

40

EDUCATION APPROPRIATIONS
Education appropriations measure state and local support available for public higher education
operating expenses and exclude appropriations for independent institutions, financial aid forstudents attending independent or out-of-state institutions, research, hospitals, and medical
education. State-level education appropriations include state higher education agency allocations
and all federal stimulus funding allocated to public institutions, while sector-level education
appropriations exclude agency funding and include the federal stimulus funding allocated to twoyear or four-year public operating. In a handful of states, some uncategorizable state support anduncategorizable financial aid are not allocated to either sector. Visit the SHEF website to view theinteractive education appropriations map.25 This map shows education appropriations per FTE
across the nation and over time.
EDUCATION APPROPRIATIONS PER FTEIN FY 2021, ADJUSTEDHistorically, public higher education was primarily funded by the states. For the last four decades,funding has decreased during poor economic times and increased as the economy improved.
Beginning with the tech bust in 2001 and continuing after the Great Recession in 2008, however,annual increases in education appropriations per FTE have been smaller than the declines during
each recession. After a historic low in 2012 following the Great Recession, states entered the2020 recession with the lowest amount of education appropriations per FTE compared to thebeginning of any other recession period since 1980. During the 2020 recession, federal stimulus
funding protected education appropriation levels in many states, reversing the trend of large cuts
to education appropriations in years following economic recessions.26
Fiscal year 2021 marks the ninth straight year of per-FTE increases in education appropriations.
Inflation-adjusted education appropriations per FTE increased 4.5% from 2020 to 2021, reaching$9,327 (Table 3.2). Despite recent increases, education appropriations remain 1.2% below 2008
levels and 10.2% below 2001 levels (two pre-recession high points). Excluding federal stimulus
funding, education appropriations per FTE increased 2.0% in the last year, yet remain 4.7%
below 2008 levels and 13.4% below 2001 levels.

25. shef.sheeo.org/data-visualizations/map-3-2/?report_page=state-funding-and-enrollment&modal=map-3_2
26. Federal stimulus funds protected education appropriations in two ways: States received federal stimulus funding for other priority budget
areas, reducing the need to redirect higher education funds toward those areas, and states received targeted federal stimulus funding
directly to higher education.

SHEEO: STATE HIGHER EDUCATION FINANCE: FY 2021

41

1. STATE COMPARISONSStates vary widely in their per-student funding for higher education. Education appropriations
per FTE in 2021 ranged from $4,370 in New Hampshire to $26,393 in Wyoming and $34,466 in
Washington, D.C. (Figure 3.2).
• From 2020 to 2021, education appropriations per FTE declined in 10 states.
Only Nevada had a decline greater than 15% (18.7%). Nevada’s declines were
due to a special reduction in general fund appropriations following shortfalls instate revenue during the COVID-19 pandemic.
• Education appropriations per FTE increased in 40 states and Washington, D.C.,
in the last year. In 14 states and Washington, D.C., the increases were greaterthan 10%. The largest increases were in Vermont (98.6%), Washington, D.C.
(46.3%), Wyoming (33.3%), Minnesota (31.8%), and New Hampshire (30.7%).
These increases were primarily but not entirely due to federal stimulus funds. In
Vermont, education appropriations increased 44.6% over the last year, even after
excluding federal stimulus funds. This increase is due to the state’s low base of
per-student funding coupled with a one-time bridge appropriation in 2021.
The majority of states continue funding higher education at a lower level than prior to the GreatRecession. Twenty-nine states have not yet recovered from the 2008 Great Recession (meaning
their education appropriations per FTE in 2021 remain below 2008 levels). In 36 states, education
appropriations per FTE remain below the level seen in 2001 prior to the tech bust.
Federal stimulus funding has a heavy impact on the above figures. On average, states allocated$335 per FTE of stimulus to higher education. In 2021, three states and Washington, D.C., allocatedmore than $3,000 per FTE in federal stimulus funding to public higher education: Washington,
D.C. ($10,853), Wyoming ($6,355), Minnesota ($3,140), and Vermont ($3,077). After excluding
federal stimulus funding from all years in which it was allocated (2009-2012 and 2020-2021):• Education appropriations per FTE declined in 18 states from 2020 to 2021.
The largest declines were in Colorado (37.6%), Nevada (15.1%), and Louisiana(10.0%).27• Education appropriations increased in 32 states and Washington, D.C., in thelast year. The largest increases were in Vermont (44.6%), Washington (15.7%),
and Michigan (15.5%).
• Thirty-three states have not yet recovered from the 2008 recession, and 37
have not yet recovered from the 2001 recession.

27. Louisiana higher education institutions were appropriated $96.7 million of Coronavirus Relief Funds (CRF) from the CARES Act in fiscal
year 2020. These funds were utilized by higher education in fiscal year 2021 to alleviate a $121 million dollar state general fund reduction.
Along with $3.3 million of additional CRF funds for use in fiscal year 2021, higher education received a true operating reduction of $21
million. In fiscal year 2022, the full state general fund reduction was restored.

SHEEO: STATE HIGHER EDUCATION FINANCE: FY 2021

42

FIGURE 3.2
PUBLIC HIGHER EDUCATION APPROPRIATIONS PER FTE BY STATE, FY 2021 (ADJUSTED)$40,000

AZ$34,466

WA$35,000$30,000$25,000$20,000

IL$15,000

MI$9,327$10,000$5,000$4,370NH

NC

NEW HAMPSHIRE
COLORADOOKLAHOMAPENNSYLVANIAIOWARHODE ISLANDARIZONALOUISIANA
WEST VIRGINIAINDIANA
NEVADADELAWARE
VIRGINIAVERMONTOREGONOHIO
SOUTH CAROLINAMONTANA
SOUTH DAKOTA
ALABAMANEW JERSEYKENTUCKYMISSISSIPPIMICHIGANFLORIDAKANSASUTAH
MAINE
ARKANSASTEXASMARYLANDWISCONSINNORTH DAKOTAU.S.
MISSOURIMASSACHUSETTS
GEORGIACALIFORNIAWASHINGTONIDAHONORTH CAROLINANEBRASKACONNECTICUTTENNESSEEMINNESOTANEW YORKHAWAII
NEW MEXICOALASKAILLINOISWYOMING
D.C.

$-

AZ

KY NOTES:
1. Education appropriations are a measure of state and local support available for public higher education operating expenses andstudent financial aid, excluding appropriations for research, hospitals, and medical education. Education appropriations include
federal stimulus funding.
2. The U.S. calculation does not include the District of Columbia.
FL
3. Adjustment factors to arrive at constant dollar figures include Cost of Living Index (COLI) and Enrollment Mix Index (EMI).
The COLI is not a measure of inflation over time.
SOURCE: State Higher Education Executive Officers AssociationIL

EDUCATION APPROPRIATIONSUSED FOR PENSIONSCASTATE SPOTLIGHT: COLORADO
CO

2021
41.9%

In 2021, Colorado state and local education appropriations per FTE (excluding
2009:
federal stimulus funding) declined by 37.6%. However, after
including federal stimulus
12.4%
funding, the state saw a 7.8% increase in education appropriations per FTE. This wide
difference is due to an unadjusted $404 million (39.1%) decline in Colorado’s state andCO
local education appropriations and an influx
of $458 million in federal CARES Act funding
FEDERAL CONTRIBUTIONS TO
allocated to higher education to stimulate the
EDUCATION APPROPRIATIONS PER FTE
economy by supporting Colorado’s workforce
19%
42%
46%
through increasing student retention and13%completion at state institutions of public
higher education. In 2021, 42.1% of Colorado’s
education appropriations came from federal
2008 2009 2010
2011
2012
2020
2021
stimulus funding.
MI
TWO-YEAR, FOUR-YEAR, AND
UNCATEGORIZABLE STATE
PUBLIC FINANCIAL AID

2019

SHEEO: STATE HIGHER EDUCATION FINANCE: FY 2021

2020

2021

43

TABLE 3.2
PUBLIC HIGHER EDUCATION APPROPRIATIONS PER FTE BY STATE, FY 1980-2021(CONSTANT ADJUSTED DOLLARS)ALABAMAALASKA
ARIZONA
ARKANSASCALIFORNIACOLORADOCONNECTICUT
DELAWARE
FLORIDAGEORGIAHAWAIIIDAHOILLINOISINDIANAIOWAKANSASKENTUCKYLOUISIANA
MAINE
MARYLANDMASSACHUSETTSMICHIGANMINNESOTAMISSISSIPPIMISSOURIMONTANANEBRASKA
NEVADANEW HAMPSHIRENEW JERSEYNEW MEXICONEW YORKNORTH CAROLINANORTH DAKOTAOHIO
OKLAHOMA
OREGONPENNSYLVANIARHODE ISLAND
SOUTH CAROLINA
SOUTH DAKOTATENNESSEE
TEXAS
UTAH
VERMONTVIRGINIAWASHINGTONWEST VIRGINIA
WISCONSINWYOMING
U.S.
D.C.

1980

2001

2011

2016

2020

2021

% CHANGE
SINCE 2020

% CHANGE
SINCE 2016

% CHANGE
SINCE 2011

% CHANGE
SINCE 2001

% CHANGE
SINCE 1980

$7,160$23,052$7,995$9,475$8,574$5,439$8,071$7,630$6,755$9,382$9,156$12,663$9,505$9,444$10,109$9,571$10,403$9,333$6,990$7,254$8,067$10,008$10,591$8,699$10,737$7,568$8,671$8,724$4,575$8,002$10,857$11,223$10,431$8,739$8,381$8,463$7,231$9,825$10,420$9,635$9,422$9,222$8,407$10,051$4,525$7,660$8,908$7,868$10,322$16,030$9,068N/A$8,428$14,242$9,057$9,596$9,415$6,587$15,833$8,829$10,242$14,515$9,170$13,486$14,407$9,373$11,071$10,918$12,649$8,253$10,327$9,743$10,886$12,274$10,734$10,595$12,859$5,838$8,635$9,150$5,064$10,812$11,019$10,602$13,494$7,426$10,068$10,346$7,830$9,834$9,029$8,267$8,910$9,665$9,768$8,722$4,131$9,537$8,572$7,533$11,546$13,095$10,386
N/A$7,066$15,089$7,370$9,364$7,629$4,006$13,007$6,041$6,845$9,105$8,847$8,480$13,203$6,101$6,140$7,161$8,686$9,229$7,374$6,983$6,697$6,878$6,766$7,702$7,990$5,359$9,175$8,486$3,089$8,023$9,668$10,516$10,383$7,972$6,184$8,819$4,699$5,753$5,080$5,647$6,484$9,518$8,629$6,576$3,283$6,342$6,390$6,138$8,993$18,715$7,930$17,208$6,524$16,000$5,920$8,680$8,670$4,493$10,695$5,774$6,974$9,436$10,017$9,388$13,822$6,784$6,040$6,757$8,061$6,177$7,726$7,670$7,556$7,265$7,669$7,905$7,883$5,984$10,519$7,223$2,823$7,753$11,488$11,184$10,846$9,575$6,882$7,315$5,307$4,642$5,424$5,906$6,324$9,336$8,734$7,845$2,942$5,697$7,101$5,330$7,823$20,944$8,174$14,894$8,073$16,598$5,812$8,619$9,578$5,066$9,917$6,544$8,118$10,468$13,366$10,264$18,353$6,569$5,925$7,520$7,783$6,263$8,150$9,012$8,707$7,669$8,921$6,837$8,907$6,272$10,677$7,986$3,345$8,705$14,792$12,396$10,845$9,041$6,569$6,267$6,717$5,704$5,190$6,687$7,952$11,306$8,293$8,984$3,711$7,312$8,670$6,137$8,394$19,793$8,927$23,563$7,733$17,497$6,194$8,886$9,859$5,462$11,287$6,984$8,323$9,844$13,881$10,612$18,752$6,408$6,115$8,680$7,931$6,209$8,724$9,050$9,611$8,197$11,759$8,161$9,504$7,646$11,113$6,490$4,370$7,753$15,134$12,428$11,090$9,133$7,567$5,838$7,395$6,097$6,137$7,624$7,665$11,412$9,039$8,717$7,370$7,215$10,296$6,309$9,107$26,393$9,327$34,466

-4.2%
5.4%
6.6%
3.1%
2.9%
7.8%
13.8%
6.7%
2.5%
-6.0%
3.8%
3.4%
2.2%
-2.4%
3.2%
15.4%
1.9%
-0.9%
7.0%
0.4%
10.4%
6.9%
31.8%
19.4%
6.7%
21.9%
4.1%
-18.7%
30.7%-10.9%
2.3%
0.3%
2.3%
1.0%
15.2%
-6.8%
10.1%
6.9%
18.3%
14.0%
-3.6%
0.9%
9.0%
-3.0%
98.6%
-1.3%
18.8%
2.8%
8.5%
33.3%
4.5%
46.3%

18.5%
9.4%
4.6%
2.4%
13.7%
21.6%
5.5%
20.9%
19.3%
4.3%
38.6%
13.0%
35.7%
-5.5%
1.3%
28.5%
-1.6%
0.5%
12.9%
18.0%
27.2%
12.8%
53.3%
3.2%
20.6%
27.8%
5.6%
-10.1%
54.8%
0.0%
31.7%
11.1%
2.3%
-4.6%
10.0%
-20.2%
39.4%
31.3%
13.2%
29.1%
21.2%
22.2%
3.5%
11.1%
150.5%
26.6%
45.0%
18.4%
16.4%
26.0%
14.1%
131.4%

9.4%
16.0%-16.0%
-5.1%
29.2%
36.4%
-13.2%
15.6%
21.6%
8.1%
56.9%
25.1%
42.0%
5.0%
-0.4%
21.2%
-8.7%
-32.7%
18.3%
29.6%
43.5%
19.2%
73.8%
6.0%
18.9%
42.7%
21.1%
-23.5%
41.5%
-3.4%
56.5%
18.2%
6.8%
14.6%
22.4%
-33.8%
57.4%
6.0%
20.8%
35.0%
18.2%
19.9%
4.7%
32.6%
124.5%
13.8%
61.1%
2.8%
1.3%
41.0%
17.6%
100.3%-8.2%
22.8%-31.6%-7.4%
4.7%-17.1%-28.7%-20.9%-18.7%-32.2%
51.4%-21.3%
30.2%-31.6%-44.8%-20.5%-37.3%-24.8%-15.5%-7.1%-11.7%-33.2%
9.5%-23.0%-26.1%
31.0%
28.7%-29.1%-13.7%-28.3%
37.3%
17.2%-17.8%
23.0%-24.8%-43.6%-5.6%-38.0%-32.0%-7.8%-14.0%
18.1%
-7.5%
-0.1%
78.4%
-24.3%
20.1%-16.3%-21.1%
101.5%-10.2%
N/A

8.0%-24.1%-22.5%
-6.2%
15.0%
0.4%
39.8%
-8.5%
23.2%
4.9%
51.6%
-16.2%
97.3%-32.1%-39.5%-9.3%-23.8%-33.5%
24.8%
24.8%
19.1%
-18.1%
11.0%-6.2%-11.5%
1.0%
28.2%-25.6%
-4.5%
-3.1%
39.4%
10.7%
6.3%
4.5%
-9.7%
-31.0%
2.3%-37.9%-41.1%-20.9%-18.7%
23.8%
7.5%-13.3%
62.9%
-5.8%
15.6%
-19.8%-11.8%
64.7%
2.9%
N/A

NOTES:
1. Education appropriations are a measure of state and local support available for public higher education operating expenses andstudent financial aid, excluding appropriations for research, hospitals, and medical education. Education appropriations include
federal stimulus funding.
2. The U.S. calculation does not include the District of Columbia. Data for the District of Columbia are not available prior to 2011.
3. The years 1980 and 2001 are included in this table because they are the starting points of the historical SHEF dataset and modern
SHEF data collection, respectively.
4. Adjustment factors to arrive at constant dollar figures include Cost of Living Index (COLI), Enrollment Mix Index (EMI), and Higher
Education Cost Adjustment (HECA). The COLI is not a measure of inflation over time.
SOURCE: State Higher Education Executive Officers Association

SHEEO: STATE HIGHER EDUCATION FINANCE: FY 2021

44

2. SECTOR COMPARISONS
Table 3.2A presents data on education appropriations per FTE for the public two-year and fouryear sectors separately. Two- and four-year institutions have different funding structures in manystates and vary in the amount of funding they receive from state and local sources.28
In the last year, inflation-adjusted state and local education appropriations increased 11.0% at
two-year institutions, reaching $9,347 per FTE. Because one in five FTE students at two-year
institutions are located in California, the U.S. weighted average is heavily affected by California’s
relatively high education appropriations. When excluding California, the U.S. average state andlocal education appropriations at two-year institutions is nearly $1,000 per FTE lower ($8,399 per
FTE). Two-year public education appropriations per FTE ranged widely across states, from $3,962
in Louisiana to $18,718 per FTE in Wyoming. In the last year, two-year education appropriations
per FTE declined in seven states. The largest declines were in Nevada (14.5%) and Oklahoma(12.6%). Forty-two states had increases, and 22 states had single-year increases greater than 10%.
The largest increases were in Mississippi (37.5%), Minnesota (38.8%), and Vermont (74.5%).
At four-year institutions, education appropriations per FTE were largely flat from 2020 to 2021
(a 0.6% increase above inflation), reaching $8,859. Appropriations ranged even more widely inthe four-year sector, from less than $5,000 per student in Arizona and New Hampshire to over
$20,000 per student in Illinois, Wyoming, and Washington, D.C.29 From 2020 to 2021, four-year
education appropriations per FTE declined in 16 states. The largest declines were in Nevada (16.0%)
and New Jersey (15.2%). Of the 34 states and Washington D.C., with increases, 14 were above 10%.
The largest increases were 71.0% in Vermont (due to increases in federal stimulus funding and a
one-time bridge appropriation from the state), 46.5% in Wyoming, and 42.2% in New Hampshire.
Sector-level education appropriations in 2021 included $214 per FTE in federal stimulus for twoyear institutions, and $288 per FTE in federal stimulus for four-year institutions. Excluding federal
stimulus funding, education appropriations at two-year institutions increased 9.1% from 2020 to2021, while appropriations at four-year institutions decreased 1.4%.
• Without federal stimulus funding, two-year education appropriations declinedin 10 states. The largest declines were in Colorado (26.2%), Nevada (14.5%),
Oklahoma (11.7%), and Louisiana (9.1%).
• Twenty-seven states had declines in four-year education appropriations whenexcluding federal stimulus funding. In 11 states, declines were greater than
5% per FTE. The largest declines were in Colorado (46.6%), Nevada (16.0%),
Louisiana (12.2%), and Missouri (10.2%).
Figure 3.2A displays the disparity in funding between the two- and four-year public sectors withineach state. States on the left side of the figure (the light blue bars) have relatively higher per-FTE
appropriations in the two-year sector, while states on the right side of the figure (the dark bluebars) have higher per-FTE appropriations in the four-year sector.

28. Unlike state-level education appropriations, sector-level education appropriations exclude agency funding, and include only the
portion of federal stimulus funding known to be allocated for two-year or four-year public operating purposes. In a handful of states,
some uncategorizable state support and uncategorizable financial aid are not allocated to either sector and are excluded from thesector-level data.
29. A large portion of education appropriations in Illinois are not available for operations at public institutions. See the Illinois state spotlightto learn more.

SHEEO: STATE HIGHER EDUCATION FINANCE: FY 2021

45

• In 2019 and 2020, four-year institutions received more in education appropriations
per student than two-year institutions, but in 2021 they received $488 less per
FTE. This means that in 2021, two-year education appropriations per FTE were
5.4% higher than four-year education appropriations, with 25 states reporting
higher funding in the two-year sector.
• Arizona had the largest disparity favoring the two-year sector (99.2% higher),although this is entirely due to local appropriations that exclusively support
community colleges. Florida has the highest disparity favoring the four-year sector,
with 77.3% greater education appropriations per FTE at four-year institutions.
These high-level data on education appropriations should be interpreted cautiously and withconsideration of each state’s broader context. This is because education appropriations attempt tomake higher education funding more comparable across states by including local appropriations(which primarily support two-year institutions) but excluding research, agriculture, and medical
appropriations, which only support four-year institutions.
To help explain the components of sector-level education appropriations, Table 3.2B breaks out
the different sources of state and local support per FTE for two- and four-year public institutions
in fiscal year 2021.
• Two-year public institutions received $5,647 per FTE in state general operating
appropriations, 76.2% of the four-year general operating appropriation ($7,414).
• State financial aid awards averaged $510 at two-year institutions, 44.8% of the$1,138 awarded to students attending four-year institutions.
• Local appropriations were 151.8 times higher at two-year institutions ($2,976)
compared to four-year institutions ($20 per FTE). There were two-year local
appropriations in 29 states, compared to only eight for four-year institutions.
• RAM averaged $1,690 at four-year institutions. These funds, which are only
allocated to four-year institutions, are excluded from education appropriations
but included in total state support.
• Total state and local support at two-year institutions was $9,347, 88.6% of theamount at four-year institutions ($10,555).

SHEEO: STATE HIGHER EDUCATION FINANCE: FY 2021

46

FIGURE 3.2A
PERCENT DIFFERENCE IN TWO-YEAR AND FOUR-YEAR PUBLIC HIGHER EDUCATIONAPPROPRIATIONS PER FTE BY STATE, FY 2021

PERCENT DIFFERENCE PER FTE

120%
100%

TWO-YEAR
99.2% HIGHER
FOUR-YEAR
77.3% HIGHER

80%

60%
40%
20%

TWO-YEAR
5.4% HIGHER

TWO-YEAR FUNDING IS HIGHERFLORIDANEW JERSEYNEVADAILLINOISIDAHOWYOMINGLOUISIANA

NORTH CAROLINAVIRGINIAGEORGIAIOWANEW YORKVERMONTKENTUCKYMASSACHUSETTS

HAWAIIMONTANA

INDIANATENNESSEEOHIONEW MEXICO

SOUTH DAKOTAOKLAHOMARHODE ISLAND

MAINE

SOUTH CAROLINAWASHINGTONNORTH DAKOTAU.S.

MARYLANDTEXASMISSOURI

ARKANSAS

CONNECTICUTUTAHCALIFORNIAMINNESOTAMISSISSIPPIALABAMAPENNSYLVANIACOLORADOKANSASNEBRASKA

WEST VIRGINIAMICHIGAN

DELAWARE

NEW HAMPSHIREARIZONA

OREGONWISCONSIN

0%

FOUR-YEAR FUNDING IS HIGHERNOTES:
1 Education appropriations are a measure of state and local support available for public higher education operating expenses andstudent financial aid, excluding appropriations for research, hospitals, and medical education. Sector-level education appropriations
include any portion of federal stimulus funding allocated specifically to each sector, but exclude state agency funding.
2. Alaska and the District of Columbia are excluded from this figure because they do not have any public two-year institutions.
3. Sector is determined at the institution level using the Carnegie Basic Classification (carnegieclassifications.acenet.edu).
Baccalaureate/Associate's Colleges and "less-than-two-year" degree-granting institutions not assigned a Carnegie classification
are considered two-year institutions.
SOURCE: State Higher Education Executive Officers Association

The SHEF website includes interactive profiles highlighting trends inhigher education revenues for each state. Visit shef.sheeo.org/state-profileand select your state for to learn more.

SHEEO: STATE HIGHER EDUCATION FINANCE: FY 2021

47

TABLE 3.2A
PUBLIC HIGHER EDUCATION APPROPRIATIONS PER FTE BY SECTOR AND STATE,FY 2019-2021 (CONSTANT ADJUSTED DOLLARS)TWO-YEAR EDUCATION APPROPRIATIONSALABAMAALASKA
ARIZONA
ARKANSASCALIFORNIACOLORADOCONNECTICUT
DELAWARE
FLORIDAGEORGIAHAWAIIIDAHOILLINOISINDIANAIOWAKANSASKENTUCKYLOUISIANA
MAINE
MARYLANDMASSACHUSETTSMICHIGANMINNESOTAMISSISSIPPIMISSOURIMONTANANEBRASKA
NEVADANEW HAMPSHIRENEW JERSEYNEW MEXICONEW YORKNORTH CAROLINANORTH DAKOTAOHIO
OKLAHOMA
OREGONPENNSYLVANIARHODE ISLAND
SOUTH CAROLINA
SOUTH DAKOTATENNESSEE
TEXAS
UTAH
VERMONTVIRGINIAWASHINGTONWEST VIRGINIA
WISCONSINWYOMING
U.S.
D.C.

2019

2020

2021

INDEX
TO U.S.

$7,443$$9,871$8,091$8,850$6,148$9,012$9,143$4,877$7,093$10,668$5,643$12,547$5,934$4,759$8,939$6,268$3,755$7,512$7,746$6,795$9,933$6,740$6,348$6,895$5,573$11,533$6,153$4,673$4,077$10,425$9,004$8,266$7,296$7,922$5,846$7,933$5,546$4,923$7,046$5,095$9,140$7,299$9,430$2,717$4,969$6,687$7,132$12,100$17,057$8,156$-$9,270$$10,308$8,412$8,653$6,182$9,408$9,989$4,945$7,156$10,948$5,974$13,702$5,951$5,213$9,348$6,393$3,770$7,416$8,467$7,406$10,801$7,572$6,651$8,618$6,048$12,796$5,862$6,010$4,606$12,244$9,058$8,051$7,878$7,369$6,700$9,092$5,867$4,351$7,563$5,900$9,268$7,655$10,227$2,951$5,494$7,711$7,991$13,389$16,396$8,422$-$8,894$$11,550$9,139$9,776$6,541$11,949$10,274$5,230$7,377$11,551$6,233$13,631$5,985$5,610$10,518$6,708$3,962$8,392$9,177$8,362$11,873$10,513$9,145$9,623$7,224$13,650$5,011$6,792$4,476$14,389$9,978$8,690$7,998$7,346$5,858$10,050$6,532$5,499$7,738$6,504$9,915$8,934$9,820$5,150$5,633$9,788$9,148$14,452$18,718$9,347
$-

0.95
N/A
1.24
0.98
1.05
0.70
1.28
1.10
0.56
0.79
1.24
0.67
1.46
0.64
0.60
1.13
0.72
0.42
0.90
0.98
0.89
1.27
1.12
0.98
1.03
0.77
1.46
0.54
0.73
0.48
1.54
1.07
0.93
0.86
0.79
0.63
1.08
0.70
0.59
0.83
0.70
1.06
0.96
1.05
0.55
0.60
1.05
0.98
1.55
2.00
1.00
N/A

FOUR-YEAR EDUCATION APPROPRIATIONS% CHANGE
SINCE 2020

% CHANGE
SINCE 2019

2019

2020

2021

INDEX
TO U.S.

% CHANGE
SINCE 2020

% CHANGE
SINCE 2019

-4.1%
N/A
12.1%
8.6%
13.0%
5.8%
27.0%
2.9%
5.8%
3.1%
5.5%
4.3%
-0.5%
0.6%
7.6%
12.5%
4.9%
5.1%
13.2%
8.4%
12.9%
9.9%
38.8%
37.5%
11.7%
19.4%
6.7%
-14.5%
13.0%
-2.8%
17.5%
10.2%
7.9%
1.5%
-0.3%
-12.6%
10.5%
11.3%
26.4%
2.3%
10.2%
7.0%
16.7%
-4.0%
74.5%
2.5%
26.9%
14.5%
7.9%
14.2%
11.0%
N/A

19.5%
N/A
17.0%
13.0%
10.5%
6.4%
32.6%
12.4%
7.2%
4.0%
8.3%
10.5%
8.6%
0.9%
17.9%
17.7%
7.0%
5.5%
11.7%
18.5%
23.1%
19.5%
56.0%
44.1%
39.6%
29.6%
18.4%
-18.6%
45.3%
9.8%
38.0%
10.8%
5.1%
9.6%
-7.3%
0.2%
26.7%
17.8%
11.7%
9.8%
27.7%
8.5%
22.4%
4.1%
89.6%
13.4%
46.4%
28.3%
19.4%
9.7%
14.6%
N/A

$7,158$15,915$3,680$8,167$8,789$4,224$9,932$5,661$12,039$10,463$13,406$9,401$19,942$7,156$6,639$6,195$8,183$6,501$7,655$8,162$8,494$6,607$8,106$6,767$7,573$6,321$9,727$9,059$2,353$10,312$14,638$13,619$12,714$7,521$6,248$6,283$4,649$5,091$5,004$5,790$6,218$10,499$8,003$8,122$2,809$6,593$8,357$5,308$5,637$19,096$8,565$18,241$7,388$16,111$3,614$8,259$9,393$4,629$10,170$6,329$12,077$10,757$12,984$9,256$20,689$6,928$6,973$6,476$8,330$6,320$7,907$8,964$8,751$6,602$8,572$7,085$8,671$6,805$9,939$9,269$2,724$10,921$16,555$13,662$12,414$7,812$6,258$6,249$5,055$5,172$4,983$6,257$7,125$11,082$7,424$8,735$3,587$7,942$9,052$5,934$5,521$19,535$8,806$22,221$7,276$16,983$3,894$8,501$8,540$5,019$10,936$6,717$11,822$9,901$13,199$9,389$21,357$6,483$6,999$7,550$8,338$6,062$8,280$8,702$9,731$6,877$9,527$7,578$9,103$8,273$10,094$7,784$3,873$9,258$15,163$13,007$12,096$7,846$7,591$5,994$5,580$5,345$5,574$7,667$6,739$11,120$8,319$8,393$6,133$7,542$9,639$6,038$6,217$28,610$8,859$28,183

0.82
1.92
0.44
0.96
0.96
0.57
1.23
0.76
1.33
1.12
1.49
1.06
2.41
0.73
0.79
0.85
0.94
0.68
0.93
0.98
1.10
0.78
1.08
0.86
1.03
0.93
1.14
0.88
0.44
1.04
1.71
1.47
1.37
0.89
0.86
0.68
0.63
0.60
0.63
0.87
0.76
1.26
0.94
0.95
0.69
0.85
1.09
0.68
0.70
3.23
1.00
3.18

-1.5%
5.4%
7.8%
2.9%
-9.1%
8.4%
7.5%
6.1%
-2.1%
-8.0%
1.7%
1.4%
3.2%
-6.4%
0.4%
16.6%
0.1%
-4.1%
4.7%
-2.9%
11.2%
4.2%
11.1%
7.0%
5.0%
21.6%
1.6%
-16.0%
42.2%-15.2%
-8.4%
-4.8%
-2.6%
0.4%
21.3%
-4.1%
10.4%
3.4%
11.9%
22.5%
-5.4%
0.3%
12.1%
-3.9%
71.0%
-5.0%
6.5%
1.7%
12.6%
46.5%
0.6%
26.8%

1.6%
6.7%
5.8%
4.1%
-2.8%
18.8%
10.1%
18.7%
-1.8%
-5.4%
-1.5%
-0.1%
7.1%
-9.4%
5.4%
21.9%
1.9%
-6.8%
8.2%
6.6%
14.6%
4.1%
17.5%
12.0%
20.2%
30.9%
3.8%
-14.1%
64.6%-10.2%
3.6%
-4.5%
-4.9%
4.3%
21.5%
-4.6%
20.0%
5.0%
11.4%
32.4%
8.4%
5.9%
4.0%
3.3%
118.4%
14.4%
15.3%
13.8%
10.3%
49.8%
3.4%
54.5%

NOTES:
1. Education appropriations are a measure of state and local support available for public higher education operating expenses andstudent financial aid, excluding appropriations for research, hospitals, and medical education. Sector-level education appropriations
include any portion of federal stimulus funding allocated specifically to each sector, but exclude state agency funding.
2. The U.S. calculation does not include the District of Columbia. There are no two-year public institutions in Alaska or the Districtof Columbia.
3. Sector-level data are recently required components of the SHEF data collection and are not currently available for years prior
to 2019.
4. Sector is determined at the institution level using the Carnegie Basic Classification (carnegieclassifications.acenet.edu).
Baccalaureate/Associate's Colleges and "less-than-two-year" degree-granting institutions not assigned a Carnegie classification are
considered two-year institutions.
5. Adjustment factors to arrive at constant dollar figures include Cost of Living Index (COLI) and Higher Education Cost Adjustment(HECA). The COLI is not a measure of inflation over time. The Enrollment Mix Index (EMI) is not applied to sector-level data.
SOURCE: State Higher Education Executive Officers Association

SHEEO: STATE HIGHER EDUCATION FINANCE: FY 2021

48

TABLE 3.2B
COMPONENTS OF PUBLIC HIGHER EDUCATION APPROPRIATIONS PER FTE BY SECTOR
AND STATE, FY 2021 (ADJUSTED)TWO-YEAR PUBLIC INSTITUTIONSALABAMAALASKA
ARIZONA
ARKANSASCALIFORNIACOLORADOCONNECTICUT
DELAWARE
FLORIDAGEORGIAHAWAIIIDAHOILLINOISINDIANAIOWAKANSASKENTUCKYLOUISIANA
MAINE
MARYLANDMASSACHUSETTSMICHIGANMINNESOTAMISSISSIPPIMISSOURIMONTANANEBRASKA
NEVADANEW HAMPSHIRENEW JERSEYNEW MEXICONEW YORKNORTH CAROLINANORTH DAKOTAOHIO
OKLAHOMA
OREGONPENNSYLVANIARHODE ISLAND
SOUTH CAROLINA
SOUTH DAKOTATENNESSEE
TEXAS
UTAH
VERMONTVIRGINIAWASHINGTONWEST VIRGINIA
WISCONSINWYOMING
U.S.
D.C.

FOUR-YEAR PUBLIC INSTITUTIONSSTATEOPERATINGSTATE
FINANCIAL AID

LOCAL

EDUC.
APPROPS.

STATE AND
LOCAL

STATE
OPERATINGSTATE
FINANCIAL AID

LOCAL

EDUC.
APPROPS.

RAM

STATE AND
LOCAL

$8,744$$1,069$7,157$6,592$1,801$11,588$9,670$4,555$6,356$11,161$3,458$6,395$5,177$4,298$3,930$4,704$2,917$7,568$4,021$7,724$4,916$6,993$5,241$3,453$4,716$4,747$4,448$5,988$1,677$7,130$3,598$6,305$7,371$4,845$3,905$5,680$3,935$4,745$3,596$5,795$6,919$3,411$9,700$4,153$4,852$8,274$7,565$9,166$10,699$5,647
$-

$133
$$7
$429
$318
$972
$362
$100
$504
$867
$164
$197
$374
$808
$407
$24
$1,720
$509
$701
$145
$503
$195
$532
$153
$1,355
$60
$195
$563
$306
$730
$455
$777
$103
$551
$32
$464
$754
$351
$299
$2,261$216$2,853
$372
$120
$713
$678
$1,124$1,584
$415
$563
$510
$-

$17
$$10,475$1,397$2,819$1,788$$$172$$$2,519$6,701$$782$6,304$$$$4,930$$6,763$$1,451$4,147$1,562$8,708$$$1,971$6,789$5,603$1,782$$2,189$1,489$3,537$2,043$$1,678$$$5,152$$$104$$$4,871$4,086$2,976$-$8,894$$11,550$9,139$9,776$6,541$11,949$10,274$5,230$7,377$11,551$6,233$13,631$5,985$5,610$10,518$6,708$3,962$8,392$9,177$8,362$11,873$10,513$9,145$9,623$7,224$13,650$5,011$6,792$4,476$14,389$9,978$8,690$7,998$7,346$5,858$10,050$6,532$5,499$7,738$6,504$9,915$8,934$9,820$5,150$5,633$9,788$9,148$14,452$18,718$9,347$-$8,894$$11,550$9,139$9,776$6,541$11,949$10,274$5,230$7,377$11,551$6,233$13,631$5,985$5,610$10,518$6,708$3,962$8,392$9,177$8,362$11,873$10,513$9,145$9,623$7,224$13,650$5,011$6,792$4,476$14,389$9,978$8,690$7,998$7,346$5,858$10,050$6,532$5,499$7,738$6,504$9,915$8,934$9,820$5,150$5,633$9,788$9,148$14,452$18,718$9,347$-$6,910$15,179$3,200$6,846$6,634$1,570$10,647$5,109$9,291$7,055$12,990$8,882$19,807$5,133$6,915$5,831$6,068$2,886$7,259$8,108$9,222$6,863$7,624$6,006$7,217$7,056$9,793$6,045$2,674$7,772$14,898$11,428$11,459$7,251$6,355$5,059$5,088$4,629$4,745$3,883$6,216$8,312$7,668$8,106$3,695$6,403$7,357$4,594$5,070$18,434$7,414$21,949

$366
$772
$54
$1,408$1,906
$900
$289
$493
$2,531$2,826$93$414$1,338$1,351$62$193$1,504$2,661
$431
$412
$464
$14
$913
$578
$574
$85
$300
$1,727$32$1,417$169$1,423
$637
$518
$401
$934
$475
$695
$174
$2,262$350$2,718
$361
$287
$358
$1,080$2,178$1,444$679$2,770$1,138
$705

$$51
$$109
$$$$$$$$$$$$368$320$$$$$$$$$$$12$$$$156$$$$$$$$15$$$$$$59$$$$$20$-$7,276$16,983$3,894$8,501$8,540$5,019$10,936$6,717$11,822$9,901$13,199$9,389$21,357$6,483$6,999$7,550$8,338$6,062$8,280$8,702$9,731$6,877$9,527$7,578$9,103$8,273$10,094$7,784$3,873$9,258$15,163$13,007$12,096$7,846$7,591$5,994$5,580$5,345$5,574$7,667$6,739$11,120$8,319$8,393$6,133$7,542$9,639$6,038$6,217$28,610$8,859$28,183$2,961$1,394$1,205$3,446$1,127$596$5,170$335$1,672$1,476$3,631$1,604$1,204$1,639$2,091$3,008$1,895$2,441$1,149$1,893$438$803$2,046$4,719$40$1,475$4,560$1,684$474$1,478$3,863$836$2,686$3,382$992$1,759$1,350$371$$1,577$1,881$3,529$3,363$930$985$1,155$834$2,891$1,461$4,259$1,690$4,409$10,255$18,377$5,099$11,961$9,667$5,615$16,106$7,052$13,494$11,377$16,831$10,993$22,592$8,123$9,102$10,641$10,233$8,526$9,429$10,595$10,169$7,679$11,573$12,297$9,143$9,748$14,654$9,468$4,347$10,735$19,180$13,843$14,782$11,228$8,583$7,753$6,930$5,716$5,574$9,346$8,620$14,649$11,682$9,323$7,155$8,700$10,473$8,934$7,678$32,869$10,555$32,592

NOTES:
1.

State public operating appropriations are a measure of state support directly allocated to public two- and four-year institutions. State public operating excludes local appropriations, agency
funding, RAM, and student financial aid.
State public financial aid is any state appropriated student financial aid for public institutions, excluding loans and aid for students attending medical schools. For many states, it includes aid
for both tuition costs and living expenses.
3. Local appropriations are any local government taxes allocated directly to institutions for operating expenses.
4. Education appropriations are a measure of state and local support available for public higher education operating expenses and student financial aid, excluding appropriations for research,hospitals, and medical education. Sector-level education appropriations include any portion of federal stimulus funding allocated specifically to each sector, but exclude state agency
funding.
5. RAM refers to the total appropriations intended for the direct operations of research, agriculture, public health care services, and medical schools.
6. Total state and local support is the sum of federal stimulus funds, state and local tax appropriations, non-tax support, non-appropriated support, state-funded endowment earnings, andother state funds, net of any funds not available for use. RAM is included in four-year state and local support. Sector-level state and local support includes any portion of federal stimulus
funding allocated specifically to each sector.
7. The U.S. calculation does not include the District of Columbia. There are no two-year public institutions in Alaska or the District of Columbia.
8. Sector-level data are recently required components of the SHEF data collection and are not currently available for years prior to 2019. Sector is determined at the institution level using
the Carnegie Basic Classification (carnegieclassifications.acenet.edu). Baccalaureate/Associate's Colleges and "less-than-two-year" degree-granting institutions not assigned a Carnegie
classification are considered two-year institutions.
9. Alabama was unable to provide sector-level breakouts for all financial programs. As a result, 49% of Alabama's 2021 state public financial aid is excluded from this table. New Mexico was
unable to provide complete financial aid data. Financial aid for fiscal years 2020 and 2021 are missing non-reverting and lottery funds. Additionally, four-year public operating funds for New
Mexico are estimated.
10. Adjusted by the Cost of Living Index (COLI). The COLI is not a measure of inflation over time. The Enrollment Mix Index (EMI) is not applied to sector-level data.
SOURCE: State Higher Education Executive Officers Association
2.

SHEEO: STATE HIGHER EDUCATION FINANCE: FY 2021

49

STATE PUBLIC FINANCIAL AID
State public financial aid is the part of education appropriations allocated to financial aid forstudents attending public institutions, excluding loans. While we present financial aid on a perFTE basis along with all other metrics in the SHEF report, it is important to note that financial aid
is not awarded to all students, and increases in aid per FTE could be due to rising award amounts
or an increase in the number of students receiving an award.
Financial aid has increased steadily despite economic recessions that negatively impacted the restof education appropriations. The SHEF data collection on financial aid goes back to 2001. Fromthat year forward, financial aid per FTE has increased in all but three years. Visit the SHEF website
to view the interactive financial aid map.30 This map shows state public financial aid per FTE acrossthe nation.
State public financial aid per FTE increased 8.8% from 2020 to2021 and reached an all-time high of $921 per FTE enrolled
student. Nationally, state public financial aid has increased
39.8% since 2008 and 75.6% since 2001. Because financial
aid per FTE has a low base, percentage increases represent
smaller dollar-amount increases than similar figures in theother revenue metrics. The 8.8% increase in the last year
corresponded to an additional $74 per FTE in financial aid.

STATE PUBLIC FINANCIAL AID PER FTEIN FY 2021, ADJUSTED

1. STATE COMPARISONSStates vary considerably in the size and extent of their financial aid programs (Figure 3.3). In 2021, allstates and Washington, D.C., had at least one public financial aid program. Public state financial aid
ranged from under $100 per FTE in four states (Arizona, Michigan, Montana, and New Hampshire)
to over $2,000 per FTE in another four states (Georgia, Louisiana, South Carolina, and Tennessee).
Since 2001, per-student aid has increased in 38 states. Despite the longstanding increases infinancial aid nationally, per-student aid has decreased in 19 states and Washington, D.C., in thelast year (Table 3.3). The largest percentage decrease was in Washington, D.C. (26.0%), with adecrease of $259 per FTE. Outside of Washington, D.C., the largest declines in financial aid werein Oklahoma (15.0% or $136 per FTE) and New York (11.8% or $165 per FTE).
Of the 31 states with increases from 2020 to 2021, financial aid per FTE increased more than
10% in nine states, and there were notable increases in Washington (32.2% or $464 per FTE) andCalifornia (41.8% or $319 per FTE). In California, the increase is due to growth in financial aid
awards to student parents and a reallocation in the sources of state financial aid from federal tostate funds. Michigan had the highest percentage increase (393.3%), however, this percentage
only represents an increase of $57 per FTE, and was largely due to declines in enrollment and theimplementation of two new financial aid programs in the two-year sector.31

30. shef.sheeo.org/data-visualizations/map-3-3/?report_page=state-funding-and-enrollment&modal=map-3_3
31. Some states, like California and Michigan, also use federal TANF allocations for state financial aid programs; these funds are not included
in SHEF education appropriations. Michigan’s TANF allocations for state financial aid represent a large portion of the state’s total financial
aid allocations. See State Spotlight: Michigan for more information.

SHEEO: STATE HIGHER EDUCATION FINANCE: FY 2021

50

MEASUREMENT NOTE: FINANCIAL AID REPORTING
Starting in 2020, the SHEF data collection asked states to provide state financial
aid by sector. For many statewide programs, there is not a separate financial aid
appropriation for two-year and four-year public institutions, and actual allocations
must be reported to obtain accurate sector-level data. As a result, many statesswitched from reporting financial aid appropriations to reporting actual allocations
by sector. A handful of states, including those with multiple sector-level data
providers, have always provided financial aid allocations. This reporting change isnoteworthy because financial aid awards depend on the number of students who
qualify and apply for each aid program, and appropriations rarely match allocations.
In all cases, prior year data were corrected to match the new reporting methodology,
or unallocated funds were listed as "uncategorizable public aid" to ensure continuity
in state support definitions over time. Nevertheless, this reporting change marks
a departure from the historical practice of SHEF reporting state appropriations forfinancial aid.

FIGURE 3.3
PUBLIC HIGHER EDUCATION STATE FINANCIAL AID PER FTE BY STATE, FY 2021 (ADJUSTED)$3,000$2,831$2,500$2,000$1,500$921$1,000$500$38
GEORGIATENNESSEE

SOUTH CAROLINAWYOMINGLOUISIANA

WASHINGTONFLORIDAKENTUCKY

WEST VIRGINIANEVADANEW YORKNEW JERSEYINDIANA

ARKANSAS

COLORADOCALIFORNIAU.S.

ILLINOISVIRGINIAALASKAMISSOURI

OKLAHOMA

D.C.

MINNESOTAWISCONSINPENNSYLVANIA

MAINE

OREGONALABAMA

NORTH DAKOTAVERMONTMASSACHUSETTSNORTH CAROLINA

DELAWARE

MISSISSIPPI

TEXAS

IDAHO

RHODE ISLAND

SOUTH DAKOTAOHIOMARYLANDNEW MEXICOCONNECTICUT

IOWA

UTAH

NEBRASKAHAWAIIKANSASNEW HAMPSHIREARIZONA

MONTANAMICHIGAN$-NOTES:
1. State public financial aid is any state appropriated student financial aid for public institutions, excluding loans and aid for students
attending medical schools. For many states, it includes aid for both tuition costs and living expenses. In several states, financial aid
may include unawarded funds that were reverted back to the state.
2. The U.S. calculation does not include the District of Columbia.
3. New Mexico was unable to provide complete financial aid data. Financial aid for fiscal year 2021 is missing non-reverting and lottery
funds.
4. Adjustment factors to arrive at constant dollar figures include Cost of Living Index (COLI) and Enrollment Mix Index (EMI). The COLI
is not a measure of inflation over time.
SOURCE: State Higher Education Executive Officers Association

SHEEO: STATE HIGHER EDUCATION FINANCE: FY 2021

51

TABLE 3.3
PUBLIC HIGHER EDUCATION STATE FINANCIAL AID PER FTE BY STATE, FY 2001-2021(CONSTANT ADJUSTED DOLLARS)ALABAMAALASKA
ARIZONA
ARKANSASCALIFORNIACOLORADOCONNECTICUT
DELAWARE
FLORIDAGEORGIAHAWAIIIDAHOILLINOISINDIANAIOWAKANSASKENTUCKYLOUISIANA
MAINE
MARYLANDMASSACHUSETTSMICHIGANMINNESOTAMISSISSIPPIMISSOURIMONTANANEBRASKA
NEVADANEW HAMPSHIRENEW JERSEYNEW MEXICONEW YORKNORTH CAROLINANORTH DAKOTAOHIO
OKLAHOMA
OREGONPENNSYLVANIARHODE ISLAND
SOUTH CAROLINA
SOUTH DAKOTATENNESSEE
TEXAS
UTAH
VERMONTVIRGINIAWASHINGTONWEST VIRGINIA
WISCONSINWYOMING
U.S.
D.C.

2001

2011

2016

2020

2021

% CHANGE
SINCE 2020

% CHANGE
SINCE 2016

% CHANGE
SINCE 2011

% CHANGE
SINCE 2001

$152
$$30
$642
$366
$679
$485
$452
$831
$1,830$10$104$1,066
$597
$52
$115
$312
$847
$430
$362
$594
$705
$714
$533
$299
$135
$52
$898
$36
$885
$1,098$1,018
$304
$51
$314
$347
$194
$848
$169
$508
$7
$300
$20
$89
$484
$504
$683
$404
$413
$1,037
$525
N/A

$277
$68
$51
$1,562
$708
$552
$432
$420
$966
$2,406
$66
$123
$676
$870
$91
$99
$1,088$1,140
$269
$322
$325
$147
$411
$234
$436
$104
$166
$990
$71
$927
$324
$1,073
$570
$322
$206
$832
$104
$610
$239
$1,794$171$2,012
$364
$143
$388
$552
$911
$1,222$564$1,296$682$1,925

$390
$716
$45
$1,187
$772
$795
$342
$371
$651
$2,012
$64
$139
$601
$1,113$92$97$1,300$2,114
$556
$340
$331
$18
$656
$382
$659
$71
$188
$1,113$42$1,042$309$1,285
$466
$487
$259
$883
$381
$727
$247
$1,757$258$2,434
$264
$143
$470
$666
$1,234$1,317$605$1,477$725$1,204

$517
$728
$37
$1,108$765$1,027$296$388$1,427$2,257
$110
$396
$958
$1,152$207$124$1,572$2,090
$517
$342
$386
$15
$782
$380
$770
$65
$245
$1,197$84$1,325$265$1,396
$409
$547
$316
$908
$586
$718
$337
$2,292$342$2,814
$307
$241
$425
$919
$1,440$1,378$595$1,417
$847
$994

$531
$796
$38
$1,174$1,084$1,026$306$370$1,479$2,333
$117
$368
$925
$1,165$213$126$1,543$2,156
$545
$322
$484
$72
$770
$385
$831
$75
$262
$1,201$93$1,199$308$1,231
$409
$542
$310
$772
$574
$748
$335
$2,195$339$2,831
$365
$253
$412
$932
$1,904$1,377$591$1,783
$921
$735

2.8%
9.3%
5.0%
6.0%
41.8%
-0.2%
3.4%
-4.8%
3.7%
3.4%
6.3%
-7.1%
-3.4%
1.1%
2.7%
1.7%
-1.9%
3.2%
5.4%
-5.9%
25.6%
393.9%
-1.5%
1.5%
8.0%
15.0%
7.1%
0.3%
10.2%
-9.5%
16.2%
-11.8%
0.1%
-0.8%
-1.7%
-15.0%
-2.0%
4.2%
-0.6%
-4.2%
-1.1%
0.6%
19.0%
4.9%
-2.9%
1.4%
32.2%
-0.1%
-0.7%
25.8%
8.8%
-26.0%

36.2%
11.1%-14.6%
-1.1%
40.3%
29.1%
-10.6%-0.4%
127.3%
16.0%
82.6%
164.2%
54.0%
4.6%
131.0%
29.7%
18.6%
2.0%
-1.9%
-5.4%
46.2%
310.2%
17.4%
0.8%
26.2%
4.9%
39.1%
7.9%
122.9%
15.0%
-0.2%
-4.2%
-12.2%
11.4%
19.5%-12.6%
50.8%
2.9%
36.0%
25.0%
31.4%
16.3%
38.3%
76.2%
-12.2%
40.0%
54.3%
4.6%
-2.3%
20.7%
27.0%
-38.9%

92.1%
1074.4%-24.5%-24.8%
53.1%
85.9%-29.3%-12.0%
53.2%
-3.0%
76.9%
200.1%
36.8%
33.9%
132.8%
26.9%
41.8%
89.2%
102.9%-0.1%
49.1%-51.0%
87.2%
64.9%
90.7%
-27.7%
58.3%
21.2%
30.2%
29.3%
-4.9%
14.7%
-28.2%
68.6%
50.8%
-7.2%
454.2%
22.7%
40.1%
22.4%
97.9%
40.7%
0.4%
76.2%
6.2%
68.7%
108.9%
12.7%
4.8%
37.6%
35.0%
-61.8%

249.3%
N/A
30.1%
82.9%
196.5%
51.1%-37.0%-18.2%
78.0%
27.5%
1098.5%255.7%-13.2%
95.1%
307.5%
9.1%
395.1%
154.4%
26.9%-11.3%-18.4%-89.8%
7.9%-27.8%
178.2%-44.7%
400.4%
33.7%
157.2%
35.4%-71.9%
20.9%
34.6%
963.5%-1.2%
122.3%
195.6%-11.8%
98.8%
332.5%
4636.3%843.7%
1691.4%184.9%-14.8%
84.9%
178.7%
240.4%
43.0%
71.9%
75.6%
N/A

NOTES:
1. State public financial aid is any state appropriated student financial aid for public institutions, excluding loans and aid for students
attending medical schools. For many states, it includes aid for both tuition costs and living expenses. In several states, financial aid
may include unawarded funds that were reverted back to the state.
2. Financial aid data are not available prior to 2001. Over time, states have shifted from reporting appropriated student financial aid
to reporting actual/awarded student financial aid. Any such updates are made to all historical data for each state.
3. The U.S. calculation does not include the District of Columbia. Data for the District of Columbia are not available prior to 2011.
4. New Mexico was unable to provide complete financial aid data. Financial aid for fiscal years 2020 and 2021 are missing non-reverting
and lottery funds.
5. Adjustment factors to arrive at constant dollar figures include Cost of Living Index (COLI), Enrollment Mix Index (EMI), and Higher
Education Cost Adjustment (HECA). The COLI is not a measure of inflation over time.
SOURCE: State Higher Education Executive Officers Association

SHEEO: STATE HIGHER EDUCATION FINANCE: FY 2021

52

2. SECTOR COMPARISONS
Table 3.3A presents state financial aid allocated to FTE students attending the public two-year andfour-year sectors, separately. In some cases, states were not able to identify the sector for someof their financial aid dollars. In those cases, the funds were listed as “uncategorizable” and are
excluded from this section.32
At two-year institutions, state public financial aid increased 4.6% from 2020 to 2021 (a $22
increase per FTE), reaching $510 per FTE. Aid ranged from $7 in Arizona to $2,853 in Tennessee.
Overall, in 2021, five states (Arizona, Delaware, Kansas, Montana, and Ohio) awarded less than$100 in financial aid per FTE at two-year institutions, and six (Kentucky, Missouri, South Carolina,
Tennessee, Washington, and West Virginia) awarded more than $1,000 per FTE.
Over the last year, aid to two-year institutions increased in 29 states. The largest increase was3,623.3% in Michigan ($189 per FTE) due to two new financial aid programs, which received $30
million in state funds in fiscal year 2021. Of the 20 states with declines, the largest was 39.7% inILOklahoma ($306 per FTE). This decline was due to several factors, including a reduction in statefunded financial aid, an enrollment decline at two-year institutions,and a decline
in enrollment
EDUCATION
APPROPRIATIONSUSED FOR PENSIONS
under Oklahoma’s largest scholarship program (OK Promise).
AZ

WA

2021
41.9%

STATE SPOTLIGHT: MICHIGAN
2009:
12.4%

MI

NH

KY

FL

CA

Historically,
the largest proportion of Michigan’s state public financial aid funding hasILbeen concentrated in the four-year sector. In 2019 and 2020, 65.3% and 80.8% of allCOstate public financial aid dollars went to the four-year sector, while only 8.5% (2019)
and 10.6% (2020) flowed to two-year colleges.33 In 2021,
there was a dramatic shift
FEDERAL CONTRIBUTIONS TOEDUCATION
APPROPRIATIONSPER FTEin sector-level financial aid allocation that led to a 3,623.3%
increasein Michigan’s
two-year sector state public financial aid: Michigan’s governor
introduced two
19%
AZ
42%
46%Reconnect),13%
new financial aid programs (Futures for Frontliners and Michigan
bothNCof which provide free tuition and fees for eligible students enrolled in Michigan’scommunity colleges. As a result, two-year public aid in Michigan increased from $5
per FTE in 2020 to $195 per FTE in 2021.
2008 2009 2010
2011
2012
2020
2021
The first program, Futures for Frontliners, was initially funded with $24 million infederal GEER funds (not included in state public financial
MI aid reported in SHEF) but will
be funded with state appropriations in fiscal
TWO-YEAR, FOUR-YEAR, AND
year 2022. In 2021, a second program, called
UNCATEGORIZABLE STATE
Michigan Reconnect, received $30 million in
PUBLIC FINANCIAL AID
state funds and is projected to receive $55
million in state funds in fiscal year 2022. Bothof these financial aid programs are fundedthrough Michigan’s Department of Labor and
2019
2020
2021
Economic Opportunity budget.

COCA
TWO-YEAR STUDENT SHARE

32. Overall, 2.5% of state public financial aid was uncategorizable. Twenty-nine states and Washington, D.C., were able to classify all statepublic financial aid by sector and listed no uncategorizable aid. In seven states, more than 5% of aid could not be classified by sector:
Ohio (6.7%), Michigan (8.6%), Washington (10.2%), Colorado (14.2%), Pennsylvania (20.9%), Rhode Island (33.6%), and Alabama (45.3%).

2001:
33. These percentages were calculated using the sum of two-year, four-year, and uncategorizablepublic financial aid.
4.5%

SHEEO: STATE HIGHER EDUCATION FINANCE: FY 2021

2021:
2.7%

53

At four-year institutions, state public financial aid increased 8.1% in the last year, or $86 per FTE,
reaching $1,138 per FTE nationally. Aid ranged from $14 per FTE in Michigan to $2,826 in Georgia.
Six states (Arizona, Hawaii, Iowa, Michigan, Montana, and New Hampshire) awarded less than$100 per FTE in financial aid to students attending four-year institutions, while 17 states awarded
more than $1,000 per FTE.
From 2020 to 2021, four-year aid allocations increased in 21 states. The largest increase was 172.3%($20 per FTE) in New Hampshire, which has a relatively small financial aid program. Twenty-ninestates and Washington, D.C., had decreases in per-FTE financial aid this year. While New Mexico
had the largest percentage decrease (32.1%, representing $80 per FTE), New Jersey had the largest
real decline (18.9% or $330 per FTE).
Figure 3.3A displays the disparity in state financial aid between the two- and four-year public
sectors within each state. States on the left side of the figure (the light blue bars) have higher
per-FTE financial aid in the two-year sector, while states on the right side of the figure (thedark blue bars) have relatively higher per-FTE financial aid in the four-year sector. While moststates have greater financial aid in the four-year sector (76.2% higher, on national average), thefour-year sector also has much higher tuition rates. Michigan had the largest disparity favoring
its two-year sector (173.3% higher), while Ohio had the largest disparity favoring its four-year
sector (170.5% higher).
FIGURE 3.3A
PERCENT DIFFERENCE IN TWO-YEAR AND FOUR-YEAR PUBLIC HIGHER EDUCATION STATEFINANCIAL AID PER FTE BY STATE, FY 2021
PERCENT DIFFERENCE PER FTE

200%
180%

TWO-YEAR
173.3% HIGHER

160%

FOUR-YEAR
170.5% HIGHER

140%
120%

FOUR-YEAR
76.2% HIGHER

100%
80%
60%
40%
20%

TWO-YEAR AID IS HIGHEROHIOKANSASARIZONANORTH CAROLINAFLORIDALOUISIANA

CALIFORNIAWYOMING

DELAWARE

ILLINOISMISSISSIPPIARKANSAS

NEVADAGEORGIAALABAMAMARYLAND

U.S.

UTAH

IDAHO

OKLAHOMANEW JERSEYPENNSYLVANIAWASHINGTONINDIANANEW YORKMINNESOTAWISCONSINVIRGINIA

SOUTH DAKOTANEBRASKAMONTANATEXAS

TENNESSEE

SOUTH CAROLINACOLORADONORTH DAKOTAMASSACHUSETTS

KENTUCKY

WEST VIRGINIACONNECTICUT

MAINE

OREGONHAWAIIRHODE ISLANDMISSOURIVERMONTIOWANEW MEXICOMICHIGAN

NEW HAMPSHIRE

0%

FOUR-YEAR AID IS HIGHERNOTES:
1. State public financial aid is any state appropriated student financial aid for public institutions, excluding loans and aid for students
attending medical schools. For many states, it includes aid for both tuition costs and living expenses. Sector-level state publicfinancial aid excludes any financial aid that could not be categorized by sector. Differences in aid amounts across sector capture
variation in the proportion of students receiving an award as well as differences in average award size.
2. Alaska and the District of Columbia are excluded from this figure because they do not have any public two-year institutions.
3. Alabama was unable to provide sector-level breakouts for all financial aid programs. As a result, 49% of Alabama's 2021 state publicfinancial aid is excluded from this table.
4. New Mexico was unable to provide complete financial aid data. Financial aid for fiscal year 2021 is missing non-reverting and lottery
funds.
5. Sector is determined at the institution level using the Carnegie Basic Classification (carnegieclassifications.acenet.edu).
Baccalaureate/Associate's Colleges and "less-than-two-year" degree-granting institutions not assigned a Carnegie classification are
considered two-year institutions.
SOURCE: State Higher Education Executive Officers Association

SHEEO: STATE HIGHER EDUCATION FINANCE: FY 2021

54

TABLE 3.3A
PUBLIC HIGHER EDUCATION STATE FINANCIAL AID PER FTE BY SECTOR AND STATE,FY 2019-2021 (CONSTANT ADJUSTED DOLLARS)TWO-YEAR FINANCIAL AID

ALABAMAALASKA
ARIZONA
ARKANSASCALIFORNIACOLORADOCONNECTICUT
DELAWARE
FLORIDAGEORGIAHAWAIIIDAHOILLINOISINDIANAIOWAKANSASKENTUCKYLOUISIANA
MAINE
MARYLANDMASSACHUSETTSMICHIGANMINNESOTAMISSISSIPPIMISSOURIMONTANANEBRASKA
NEVADANEW HAMPSHIRENEW JERSEYNEW MEXICONEW YORKNORTH CAROLINANORTH DAKOTAOHIO
OKLAHOMA
OREGONPENNSYLVANIARHODE ISLAND
SOUTH CAROLINA
SOUTH DAKOTATENNESSEE
TEXAS
UTAH
VERMONTVIRGINIAWASHINGTONWEST VIRGINIA
WISCONSINWYOMING
U.S.
D.C.

2019

2020

2021

INDEX
TO U.S.

$166
$$6
$283
$244
$935
$319
$100
$487
$829
$142
$209
$330
$662
$111
$21
$1,565
$444
$727
$78
$384
$6
$525
$132
$872
$24
$211
$544
$316
$518
$271
$1,106
$105
$435
$36
$654
$711
$335
$302
$2,280$192$2,977
$190
$81
$848
$593
$760
$1,012
$498
$645
$451
$-

$161
$$6
$313
$302
$960
$309
$104
$494
$898
$143
$246
$400
$666
$391
$22
$1,782
$463
$631
$119
$340
$5
$527
$157
$1,081
$49
$222
$541
$314
$561
$254
$1,003
$99
$544
$37
$770
$804
$353
$288
$2,530$221$2,963
$203
$95
$743
$698
$896
$1,358
$408
$644
$487
$-

$133
$$7
$429
$318
$972
$362
$100
$504
$867
$164
$197
$374
$808
$407
$24
$1,720
$509
$701
$145
$503
$195
$532
$153
$1,355
$60
$195
$563
$306
$730
$455
$777
$103
$551
$32
$464
$754
$351
$299
$2,261$216$2,853
$372
$120
$713
$678
$1,124$1,584
$415
$563
$510
$-

0.26
N/A
0.01
0.84
0.62
1.91
0.71
0.20
0.99
1.70
0.32
0.39
0.73
1.58
0.80
0.05
3.37
1.00
1.37
0.28
0.99
0.38
1.04
0.30
2.66
0.12
0.38
1.10
0.60
1.43
0.89
1.53
0.20
1.08
0.06
0.91
1.48
0.69
0.59
4.44
0.42
5.60
0.73
0.24
1.40
1.33
2.20
3.11
0.81
1.10
1.00
N/A

FOUR-YEAR FINANCIAL AID% CHANGE
SINCE 2020

% CHANGE
SINCE 2019

2019

2020

2021

INDEX
TO U.S.

% CHANGE
SINCE 2020

% CHANGE
SINCE 2019-17.7%
N/A
15.5%
37.0%
5.5%
1.3%
17.0%
-3.5%
2.0%
-3.5%
14.6%
-19.8%
-6.3%
21.4%
4.1%
11.4%
-3.5%
9.8%
11.0%
21.7%
47.7%
3623.3%
0.9%
-2.5%
25.4%
23.1%
-12.2%
4.1%
-2.8%
30.0%
79.0%
-22.5%
4.1%
1.3%-13.2%-39.7%
-6.2%
-0.7%
4.1%
-10.6%
-2.5%
-3.7%
83.4%
27.1%
-4.0%
-2.8%
25.5%
16.6%
1.5%
-12.7%
4.6%
N/A-19.9%
N/A
14.8%
51.5%
30.4%
4.0%
13.6%
0.2%
3.4%
4.5%
15.5%
-5.7%
13.4%
22.1%
267.2%
13.6%
9.9%
14.5%
-3.7%
85.7%
30.9%
2967.8%
1.2%
16.1%
55.5%
148.8%
-7.7%
3.5%
-3.4%
40.8%
67.9%
-29.7%-1.7%
26.7%-10.9%-29.1%
6.1%
4.6%
-0.7%
-0.8%
12.4%
-4.2%
95.4%
48.7%
-15.9%
14.4%
48.0%
56.5%
-16.7%-12.8%
13.0%
N/A

$519
$717
$62
$1,354$1,150
$826
$280
$523
$2,339$2,665$95$390$1,240$1,458$57$195$1,425$2,674
$440
$425
$361
$23
$952
$545
$574
$50
$240
$1,787$4$1,673$278$1,559
$676
$470
$338
$1,068
$440
$607
$180
$2,226$339$2,475
$378
$264
$379
$987
$1,715$1,497$679$2,064$1,006$1,138

$450
$706
$54
$1,373$1,232
$915
$294
$520
$2,523$2,770$94$433$1,364$1,388$59$194$1,514$2,656
$414
$471
$392
$17
$941
$578
$605
$75
$263
$1,760$12$1,747$249$1,573
$658
$525
$404
$997
$452
$677
$179
$2,249$353$2,614
$393
$279
$369
$1,054$1,946$1,487$695$1,964$1,052
$954

$366
$772
$54
$1,408$1,906
$900
$289
$493
$2,531$2,826$93$414$1,338$1,351$62$193$1,504$2,661
$431
$412
$464
$14
$913
$578
$574
$85
$300
$1,727$32$1,417$169$1,423
$637
$518
$401
$934
$475
$695
$174
$2,262$350$2,718
$361
$287
$358
$1,080$2,178$1,444$679$2,770$1,138
$705

0.32
0.68
0.05
1.24
1.68
0.79
0.25
0.43
2.22
2.48
0.08
0.36
1.18
1.19
0.05
0.17
1.32
2.34
0.38
0.36
0.41
0.01
0.80
0.51
0.50
0.07
0.26
1.52
0.03
1.25
0.15
1.25
0.56
0.46
0.35
0.82
0.42
0.61
0.15
1.99
0.31
2.39
0.32
0.25
0.31
0.95
1.91
1.27
0.60
2.43
1.00
0.62

-18.7%
9.3%
0.1%
2.6%
54.7%
-1.7%
-1.7%
-5.3%
0.3%
2.0%
-0.8%
-4.4%
-1.9%
-2.7%
5.4%
-0.7%
-0.7%
0.2%
4.1%
-12.5%
18.3%-20.1%
-2.9%
-0.1%
-5.2%
13.7%
14.2%
-1.9%
172.3%-18.9%-32.1%
-9.5%
-3.2%
-1.4%
-0.6%
-6.3%
5.1%
2.6%
-2.5%
0.6%
-0.9%
4.0%
-8.3%
2.8%
-2.9%
2.5%
11.9%
-2.9%
-2.3%
41.0%
8.1%
-26.0%-29.5%
7.7%-12.8%
4.0%
65.7%
9.0%
3.0%
-5.7%
8.2%
6.0%
-1.8%
6.1%
7.9%
-7.3%
8.9%
-1.1%
5.5%
-0.5%
-2.1%
-3.1%
28.4%
-38.5%
-4.1%
6.0%
-0.1%
70.8%
25.2%
-3.4%
650.2%-15.3%-39.3%
-8.7%
-5.8%
10.1%
18.7%
-12.5%
8.0%
14.5%
-2.8%
1.6%
3.3%
9.8%
-4.7%
8.8%
-5.4%
9.4%
27.0%
-3.6%
0.1%
34.2%
13.0%
-38.0%NOTES:
1. State public financial aid is any state appropriated student financial aid for public institutions, excluding loans and aid for students
attending medical schools. For many states, it includes aid for both tuition costs and living expenses. Sector-level state publicfinancial aid excludes any financial aid that could not be categorized by sector.
2. The U.S. calculation does not include the District of Columbia. There are no two-year public institutions in Alaska or the Districtof Columbia.
3. Sector-level data are recently required components of the SHEF data collection and are not currently available for years prior to 2019.
4. Sector is determined at the institution level using the Carnegie Basic Classification (carnegieclassifications.acenet.edu).
Baccalaureate/Associate's Colleges and "less-than-two-year" degree-granting institutions not assigned a Carnegie classification are
considered two-year institutions.
5. Alabama was unable to provide sector-level breakouts for all programs. As a result, 49% of Alabama's 2021 state public financial aid
is excluded from this table.
6. New Mexico was unable to provide complete financial aid data. Financial aid for fiscal years 2020 and 2021 are missing non-reverting
and lottery funds.
7. Adjustment factors to arrive at constant dollar figures include Cost of Living Index (COLI) and Higher Education Cost Adjustment(HECA). The COLI is not a measure of inflation over time. The Enrollment Mix Index (EMI) is not applied to sector-level data.
SOURCE: State Higher Education Executive Officers Association

SHEEO: STATE HIGHER EDUCATION FINANCE: FY 2021

55

FINANCIAL AID PERCENTAGE OF EDUCATION APPROPRIATIONS
Financial aid is one component of education appropriations, and its share of education
appropriations has increased over time. This section provides data on state public financial aid asa percentage of education appropriations (the financial aid allocation) by state and sector.
The percentage of education appropriations allocated to state financial aid has increased overtime. In 2001, 5.1% of education appropriations were directed toward student financial aid; by2021, this proportion had increased to 9.9% (a growth of 4.8 percentage points).

1. STATE COMPARISONSStates vary considerably in how much of their total funding is allocated to student financial aid. On
the low end, Arizona has a very small aid program that comprises only 0.6% of its total education
appropriations. On the high end, the financial aid allocation accounts for 34.7% of Louisiana’s total
funding for public higher education (Figure 3.4).
Financial aid as a percentage of education appropriations has increased in 39 states since 2001,
when financial aid data were first collected. This proportion increased by more than 10 percentage
points in eight states. The largest increases were in Louisiana (24.5 percentage points), South
Carolina (22.7), and Tennessee (21.7). Of the 11 states with declines in the proportion of education
appropriations allocated to financial aid, only two states had declines greater than 5 percentage
points: Vermont (6.1 percentage points) and New Mexico (7.9).
FIGURE 3.4
PUBLIC HIGHER EDUCATION STATE FINANCIAL AID AS A PERCENT OF EDUCATIONAPPROPRIATIONS BY STATE, FY 2021
40%

34.7%

35%
30%
25%
20%
15%

9.9%

10%
5%

0.6%
LOUISIANA

SOUTH CAROLINAGEORGIATENNESSEEWEST VIRGINIANEVADAKENTUCKY

COLORADOINDIANAWASHINGTONFLORIDAOKLAHOMANEW JERSEYVIRGINIA

ARKANSASPENNSYLVANIAU.S.

NEW YORKCALIFORNIA

OREGONMISSOURI

ALABAMAWYOMINGMINNESOTA

MAINE

WISCONSINVERMONTNORTH DAKOTARHODE ISLANDILLINOISDELAWARE

MASSACHUSETTSALASKAMISSISSIPPIOHIO

SOUTH DAKOTATEXASNORTH CAROLINAIOWAMARYLAND

UTAH

IDAHO

CONNECTICUT

D.C.

NEBRASKANEW HAMPSHIREKANSASNEW MEXICOMONTANAHAWAIIMICHIGANARIZONA0%NOTES:
1. State public financial aid is any state appropriated student financial aid for public institutions, excluding loans and aid for students
attending medical schools. For many states, it includes aid for both tuition costs and living expenses. In several states, financial aid
may include unawarded funds that were reverted back to the state.
2. Education appropriations are a measure of state and local support available for public higher education operating expenses andstudent financial aid, excluding appropriations for research, hospitals, and medical education. Education appropriations include
federal stimulus funding.
3. New Mexico was unable to provide complete financial aid data. Financial aid for fiscal year 2021 is missing non-reverting andlottery funds.
SOURCE: State Higher Education Executive Officers Association

SHEEO: STATE HIGHER EDUCATION FINANCE: FY 2021

56

2. SECTOR COMPARISONS
The percentage of education appropriations allocated to financial aid differs for two- and fouryear institutions. In fiscal year 2021, 5.5% of funding at two-year institutions went to financial aid,
compared to 12.8% at four-year institutions.34• The financial aid allocation at two-year institutions ranged from 0.1% in Arizona
to 29.2% in South Carolina. Five states (Arizona, Delaware, Kansas, Montana,
and Ohio) had a two-year financial aid allocation of less than 1%.
• At four-year institutions, Michigan had the lowest financial aid allocation (0.2%),and Louisiana had the highest (43.9%). Four states (Hawaii, Iowa, Michigan, andNew Hampshire) had a four-year financial aid allocation of less than 1%.
Figure 3.4A shows the difference in the financial aid allocation as a percentage of sector-level
education appropriations between two- and four-year institutions. In states on the figure’s left
side (the light blue bars), the financial aid allocation as a percentage of two-year education
appropriations is highest in the two-year sector. Most states are on the right side of Figure
3.4A (the dark blue bars), indicating that in a majority of states, the mix of funding for four-year
institutions leans more toward student aid than at two-year institutions.
FIGURE 3.4A
DIFFERENCE IN TWO-YEAR AND FOUR-YEAR STATE FINANCIAL AID AS A PERCENTOF EDUCATION APPROPRIATIONS BY STATE, FY 2021
PERCENTAGE POINT DIFFERENCE

35%

FOUR-YEAR
31.1% HIGHER

30%
25%
20%
15%

TWO-YEAR
8.0% HIGHER
FOUR-YEAR
7.4% HIGHER

10%
5%

TWO-YEAR AID SHARE IS HIGHERLOUISIANA

GEORGIACALIFORNIAFLORIDA

ARKANSAS

NEVADAWASHINGTONWISCONSIN

U.S.

OKLAHOMAINDIANAPENNSYLVANIAWYOMING

DELAWARE

WEST VIRGINIAOHIOMISSISSIPPIMINNESOTANORTH CAROLINAILLINOISALABAMANEW YORKMARYLANDKANSASCOLORADOUTAHVIRGINIANEBRASKA

SOUTH DAKOTAIDAHOARIZONA

OREGON

SOUTH CAROLINATEXASMONTANANORTH DAKOTAHAWAII

CONNECTICUTNEW JERSEYMICHIGANMASSACHUSETTS

NEW MEXICOMAINERHODE ISLANDIOWATENNESSEENEW HAMPSHIREMISSOURIKENTUCKYVERMONT0%

FOUR-YEAR AID SHARE IS HIGHERNOTES:
1. State public financial aid is any state appropriated student financial aid for public institutions, excluding loans and aid for students
attending medical schools. For many states, it includes aid for both tuition costs and living expenses. Sector-level state publicfinancial aid excludes any financial aid that could not be categorized by sector. Differences in aid amounts across sector capture
variation in the proportion of students receiving an award as well as differences in average award size.
2. Education appropriations are a measure of state and local support available for public higher education operating expenses andstudent financial aid, excluding appropriations for research, hospitals, and medical education. Sector-level education appropriations
include any portion of federal stimulus funding allocated specifically to each sector, but exclude state agency funding.
3. Percentage point differences show the number of percentage points by which the student share is higher at either two- or four-year
institutions, not the percent difference between the two.
4. Alaska and the District of Columbia are excluded from this figure because they do not have any public two-year institutions.
5. Alabama was unable to provide sector-level breakouts for all financial aid programs. As a result, 49% of Alabama's 2021 state publicfinancial aid is excluded from this table.
6. New Mexico was unable to provide complete financial aid data. Financial aid for fiscal year 2021 is missing non-reverting and lottery funds.
SOURCE: State Higher Education Executive Officers Association

34. For a breakdown of state aid as a percentage of education appropriations over time for each state and by sector, visit the web-only
Tables 3.4 and 3.4A on the SHEF website at shef.sheeo.org/report/?report_page=state-funding-and-enrollment#financial-aid-share.
SHEEO: STATE HIGHER EDUCATION FINANCE: FY 2021

57

NET TUITION AND TOTALEDUCATION REVENUEThis section thoroughly examines the trends and interstate differences in net tuition revenue andtotal education revenue, including the student share. We also present sector-level breakouts foreach of these metrics.

NET TUITION REVENUE
Net tuition revenue is calculated by taking the gross amount of tuition and fees net of state andinstitutional financial aid, tuition waivers or discounts, and medical student tuition and fees.
Federal financial aid and student loans are included in net tuition revenue. Visit the SHEF website
to view the interactive tuition revenue map.35 This map shows net tuition revenue per FTE acrossthe nation.
NET TUITION REVENUE PER FTEIN FY 2021, ADJUSTEDInflation-adjusted net tuition and fee revenue has increased substantially over time. In 1980 (thestart of the SHEF dataset), public institutions averaged $2,396 in net tuition revenue per FTE. Since
that time, tuition revenue per FTE has increased 180.5%, and there have been only five years with adecline in net tuition revenue (2000, 2001, 2019, 2020, 2021). Overall, the average annual change
in tuition and fee revenue is a 2.6% increase above inflation. These increases are primarily due toincreases in tuition and fee rates and an increasing proportion of out-of-state, international, andgraduate student enrollment.
Recently, this trend has shifted; tuition and fee revenue has declined for the last three years. Public
institutions received $6,723 in net tuition revenue from in-state and out-of-state students in
2021, down 3.2% from 2020 and 4.7% over the last five years. Declines in net tuition revenue arelargely due to increases in state financial aid and minimal tuition rate growth.

35. shef.sheeo.org/data-visualizations/map-4-1/?report_page=net-tuition-and-total-education-revenue&modal=map-4_1

SHEEO: STATE HIGHER EDUCATION FINANCE: FY 2021

58

1. STATE COMPARISONS
Net tuition revenue per FTE ranged widely across the states due to differences in the mix ofstudents paying different tuition rates, the level of state support and availability of state publicfinancial aid, and whether institutions can freely raise their tuition rates (Figure 4.1). On the low
end, net tuition revenue was less than $3,000 per FTE in California, Florida, and Nevada. On thehigh end, net tuition revenue is over $15,000 in Delaware and Vermont. Seven states had net
tuition revenue averages below $5,000 per FTE, and 11 states were above $10,000 per FTE.
• Table 4.1 shows that net tuition revenue per FTE declined in 36 states
between 2020 and 2021. Five states saw declines greater than 10% (California,
Connecticut, Delaware, New Mexico, and Wyoming). Increases in financial aid
account for most of the declines seen in California and Wyoming.
• Of the 14 states and Washington, D.C., with net tuition revenue increases in thelast year, only three had increases higher than 5% (Arizona, North Dakota, andRhode Island).
In the last five years (since 2016), net tuition and fee revenue has declined in 26 states andWashington, D.C. Despite these recent declines, since 1980 net tuition revenue per FTE has
increased in every state and has increased by more than 100% in 44 states. The smallest increase
was 25.0% in Nevada; the largest increases, both more than 400%, were in Alabama and Hawaii.
FIGURE 4.1
PUBLIC HIGHER EDUCATION NET TUITION REVENUE PER FTE BY STATE, FY 2021 (ADJUSTED)$17,500$16,517$15,000$12,500$10,000$7,500$6,723$5,000$2,500$2,301D.C.
NORTH CAROLINA
ALASKAWASHINGTONTEXASLOUISIANAMASSACHUSETTS
NEW YORKUTAH
U.S.
MONTANATENNESSEENEBRASKA
MAINE
ARKANSASKANSASWISCONSINNEW JERSEYMISSOURI
WEST VIRGINIAMARYLANDMISSISSIPPIILLINOISOKLAHOMAIDAHOOREGON
SOUTH DAKOTAVIRGINIARHODE ISLANDARIZONAKENTUCKYNEW HAMPSHIREOHIO
MINNESOTA
IOWA
CONNECTICUTCOLORADOINDIANANORTH DAKOTA
SOUTH CAROLINAPENNSYLVANIAALABAMAMICHIGANVERMONTDELAWARE

FLORIDACALIFORNIANEVADAWYOMINGNEW MEXICOHAWAIIGEORGIA$-NOTES:
1. Net tuition revenue is calculated by taking the gross amount of tuition and fees, less state and institutional financial aid, tuition waivers
or discounts, and medical student tuition and fees.
2. The U.S. calculation does not include the District of Columbia.
3. Fiscal year 2021 includes estimated net tuition revenue for Illinois, New Jersey, and Pennsylvania.
4. Adjustment factors to arrive at constant dollar figures include Cost of Living Index (COLI) and Enrollment Mix Index (EMI). The COLI
is not a measure of inflation over time.
SOURCE: State Higher Education Executive Officers Association

SHEEO: STATE HIGHER EDUCATION FINANCE: FY 2021

59

TABLE 4.1
PUBLIC HIGHER EDUCATION NET TUITION REVENUE PER FTE BY STATE, FY 1980-2021(CONSTANT ADJUSTED DOLLARS)ALABAMAALASKA
ARIZONA
ARKANSASCALIFORNIACOLORADOCONNECTICUT
DELAWARE
FLORIDAGEORGIAHAWAIIIDAHOILLINOISINDIANAIOWAKANSASKENTUCKYLOUISIANA
MAINE
MARYLANDMASSACHUSETTSMICHIGANMINNESOTAMISSISSIPPIMISSOURIMONTANANEBRASKA
NEVADANEW HAMPSHIRENEW JERSEYNEW MEXICONEW YORKNORTH CAROLINANORTH DAKOTAOHIO
OKLAHOMA
OREGONPENNSYLVANIARHODE ISLAND
SOUTH CAROLINA
SOUTH DAKOTATENNESSEE
TEXAS
UTAH
VERMONTVIRGINIAWASHINGTONWEST VIRGINIA
WISCONSINWYOMING
U.S.
D.C.

1980

2001

2011

2016

2020

2021

% CHANGE
SINCE 2020

% CHANGE
SINCE 2016

% CHANGE
SINCE 2011

% CHANGE
SINCE 2001

% CHANGE
SINCE 1980

$2,602$2,384$2,158$2,913$699$3,144$2,199$4,655$1,701$2,093$854$2,137$1,865$3,601$3,279$2,886$2,707$2,122$3,308$2,598$2,386$4,224$2,395$3,021$3,028$1,988$2,487$2,044$5,444$1,985$2,090$2,737$2,055$2,551$4,099$2,088$2,385$4,631$3,182$2,315$3,565$2,683$1,920$2,501$7,476$2,427$2,274$1,849$3,682$2,612$2,396
N/A$6,211$3,172$4,250$3,442$1,068$4,688$5,382$10,323$3,131$2,572$2,229$4,135$3,299$6,631$6,011$4,332$5,363$2,948$6,111$5,761$4,445$7,441$4,536$4,146$4,877$4,395$4,216$2,634$9,557$6,806$1,378$4,470$3,153$5,033$6,971$2,805$4,378$9,345$7,106$4,863$6,650$4,884$5,030$3,163$13,297$4,541$2,641$4,317$4,025$3,616$4,223
N/A$9,797$4,635$6,092$4,702$1,683$7,764$6,579$14,212$2,998$3,244$4,064$5,277$6,575$8,433$8,888$6,379$8,985$3,387$7,804$7,133$6,280$11,472$9,332$5,764$6,888$5,953$5,704$3,292$9,103$8,393$3,606$5,064$3,678$7,840$8,223$4,855$6,102$11,454$8,110$8,250$7,934$6,080$5,188$5,336$14,204$7,155$4,358$6,243$5,533$2,432$5,747$6,479$13,624$4,776$8,784$6,650$2,729$9,807$10,712$16,783$3,658$5,740$4,691$8,476$8,566$10,450$9,777$7,345$9,729$5,020$7,056$7,528$5,748$14,251$9,816$7,494$7,537$6,706$6,766$3,703$10,300$10,051$3,563$6,448$5,653$8,894$10,024$6,819$7,963$11,260$8,611$10,137$8,672$7,811$5,871$6,602$16,468$8,483$5,963$8,094$6,821$3,060$7,057$6,099$13,633$5,091$8,580$7,208$2,963$10,396$11,826$18,663$2,428$5,257$4,447$8,193$8,397$10,346$10,150$7,358$9,649$5,450$7,142$7,857$5,856$15,287$9,969$7,901$7,704$6,959$7,082$2,436$9,628$7,312$4,156$6,091$5,195$9,614$9,954$8,443$8,538$11,116$8,495$10,754$9,151$7,178$5,620$6,698$16,071$8,844$5,936$7,692$7,033$3,852$6,946$4,927$13,685$5,128$9,102$7,129$2,533$10,310$10,273$16,517$2,301$4,983$4,381$8,457$8,002$10,391$10,129$7,234$9,312$5,588$7,098$7,801$5,646$14,922$9,931$7,994$7,528$6,948$7,027$2,554$9,467$7,369$3,685$5,763$5,096$10,562$9,652$8,129$8,636$10,850$9,087$10,697$8,710$7,021$5,567$6,039$15,436$8,866$5,460$7,577$7,250$3,287$6,723$5,005

0.4%
0.7%
6.1%
-1.1%
-14.5%-0.8%-13.1%-11.5%
-5.2%
-5.2%
-1.5%
3.2%
-4.7%
0.4%
-0.2%
-1.7%
-3.5%
2.5%
-0.6%
-0.7%
-3.6%
-2.4%
-0.4%
1.2%
-2.3%
-0.2%
-0.8%
4.8%
-1.7%
0.8%
-11.3%
-5.4%
-1.9%
9.9%
-3.0%
-3.7%
1.2%
-2.4%
7.0%
-0.5%
-4.8%
-2.2%
-0.9%
-9.8%
-4.0%
0.2%
-8.0%
-1.5%
3.1%
-14.7%
-3.2%
1.6%

0.4%
7.4%
3.6%
7.2%
-7.2%
5.1%
-4.1%
-1.6%
-37.1%-13.2%
-6.6%
-0.2%
-6.6%
-0.6%
3.6%
-1.5%
-4.3%
11.3%
0.6%
3.6%
-1.8%
4.7%
1.2%
6.7%
-0.1%
3.6%
3.9%
-31.0%-8.1%-26.7%
3.4%-10.6%
-9.9%
18.8%
-3.7%
19.2%
8.5%
-3.6%
5.5%
5.5%
0.4%
-10.1%
-5.2%
-8.5%
-6.3%
4.5%
-8.4%
-6.4%
6.3%
7.4%
-4.7%
-17.9%

39.7%
10.7%
49.4%
51.6%
50.5%
32.8%
56.2%
16.2%
-23.2%
53.6%
7.8%
60.3%
21.7%
23.2%
14.0%
13.4%
3.6%
65.0%
-9.0%
9.4%
-10.1%
30.1%
6.4%
38.7%
9.3%
16.7%
23.2%
-22.4%
4.0%-12.2%
2.2%
13.8%
38.6%
34.7%
17.4%
67.5%
41.5%
-5.3%
12.0%
29.6%
9.8%
15.5%
7.3%
13.2%
8.7%
23.9%
25.3%
21.4%
31.0%
35.2%
17.0%
-22.8%

120.3%
61.7%
114.2%
107.1%
137.1%
119.9%
90.9%
60.0%-26.5%
93.8%
96.6%
104.5%
142.6%
56.7%
68.5%
67.0%
73.6%
89.6%
16.2%
35.4%
27.0%
100.5%
119.0%
92.8%
54.4%
58.1%
66.7%
-3.0%
-0.9%
8.3%
167.5%
28.9%
61.6%
109.8%
38.5%
189.8%
97.3%
16.1%
27.9%
120.0%
31.0%
43.8%
10.7%
90.9%
16.1%
95.2%
106.7%
75.5%
80.1%
-9.1%
59.2%
N/A

425.80%115.2%
321.8%
144.7%
262.4%
227.9%
367.1%
254.8%
35.3%
138.0%
412.9%
295.7%
329.2%
188.5%
208.9%
150.7%
244.0%
163.4%
114.6%
200.3%
136.6%
253.3%
314.7%
164.6%
148.6%
249.5%
182.6%
25.0%
73.9%
271.2%
76.3%
110.6%
148.0%
314.1%
135.5%
289.2%
262.1%
134.3%
185.6%
362.0%
144.3%
161.7%
190.0%
141.5%
106.5%
265.3%
140.1%
309.8%
96.9%
25.9%
180.5%N/A

NOTES:
1. Net tuition revenue is calculated by taking the gross amount of tuition and fees, less state and institutional financial aid, tuition
waivers or discounts, and medical student tuition and fees.
2. The U.S. calculation does not include the District of Columbia. Data for the District of Columbia are not available prior to 2011.
3. The years 1980 and 2001 are included in this table because they are the starting points of the historical SHEF dataset and modern
SHEF data collection, respectively.
4. Fiscal years 2020 and 2021 include estimated net tuition revenue for New Jersey and Pennsylvania. Fiscal year 2021 includes
estimated net tuition revenue for Illinois.
5. Adjustment factors to arrive at constant dollar figures include Cost of Living Index (COLI), Enrollment Mix Index (EMI), and Higher
Education Cost Adjustment (HECA). The COLI is not a measure of inflation over time.
SOURCE: State Higher Education Executive Officers Association

SHEEO: STATE HIGHER EDUCATION FINANCE: FY 2021

60

2. SECTOR COMPARISONS
Table 4.1A presents new data on net tuition revenue per FTE for the two- and four-year public
sectors separately.
Net tuition revenue at two-year institutions averaged $2,604 per FTE in 2021, down 1.7% ($44 per
FTE) from 2020 and 5.4% ($147 per FTE) from 2019. This year, two-year net tuition ranged froma low of $266 per FTE in California (the only state with less than $1,000 per FTE in net tuition
revenue in either sector) to over $6,000 per FTE in Connecticut and Michigan.
In the last year, per-FTE tuition revenue declined at two-year institutions in 31 states. Delaware had
the largest two-year tuition decline (11.6%). Of the 18 states with increases, the largest was 19.4%
in Arizona. The only other increase above 10% was South Carolina (13.1%).
At four-year institutions, tuition revenue averaged $9,295 per FTE, 3.6 times the average tuition in
the two-year sector. Only five states and Washington, D.C., averaged less than $5,000 in four-year
net tuition revenue per FTE: Alaska, Florida, Nevada, New Mexico, and Wyoming. Florida had thelowest four-year tuition ($2,148 per FTE). On the other hand, four states had net tuition revenue
greater than $15,000 per FTE: Alabama, Delaware, Michigan, and Vermont. Delaware had thehighest four-year net tuition revenue ($22,443 per FTE).
From 2020 to 2021, four-year net tuition revenue decreased in 40 states. Seven states had declines
greater than 10% (California, Connecticut, Delaware, New Mexico, New York, Utah, and Wyoming).
The largest percentage decline was 24.0% in Wyoming, but the largest per-FTE declines werein Connecticut ($2,666) and Delaware ($2,998). In Wyoming, the decline was almost entirely
explained by increases in financial aid. In Utah, the decline was due to an increase in institutional aid
during the COVID-19 pandemic. However, in both Connecticut and Delaware, the declines were
due to decreases in gross tuition and fee revenue (rather than increases in state or institutional aid).
Figure 4.1A displays the disparity in net tuition revenue per FTE between each state’s two- andfour-year public sectors. On average, four-year institutions receive 112.4% more tuition and fee
revenue than two-year institutions. Only Florida is on the figure’s left side (the light blue bar), with
20.8% higher per-FTE net tuition revenue in the two-year sector. All other states are on the figure’s
right side (the dark blue bars), with relatively higher net tuition revenue per FTE in the four-year
sector. California has the largest disparity in net tuition revenue across sectors, with 180.8% higher
net tuition and fee revenue in the four-year sector.

SHEEO: STATE HIGHER EDUCATION FINANCE: FY 2021

61

FIGURE 4.1A
PERCENT DIFFERENCE IN TWO-YEAR AND FOUR-YEAR PUBLIC HIGHER EDUCATION NETTUITION REVENUE PER FTE BY STATE, FY 2021

PERCENT DIFFERENCE PER FTE

200%

FOUR-YEAR
180.8% HIGHER

180%
160%
140%

FOUR-YEAR
112.4% HIGHER

120%
100%
80%
60%

TWO-YEAR
20.8% HIGHER

40%
20%

TWO-YEAR NET TUITION IS HIGHERCALIFORNIAARIZONA

MONTANA

DELAWARE

TENNESSEENORTH CAROLINA

TEXAS

SOUTH CAROLINA

OREGONWASHINGTONOHIOINDIANAU.S.

COLORADO

WISCONSINNEW JERSEYIDAHONEBRASKAMICHIGANPENNSYLVANIAKANSASVIRGINIAMAINENORTH DAKOTA

ALABAMAIOWAMISSOURIVERMONTHAWAII

SOUTH DAKOTAKENTUCKY

OKLAHOMAMINNESOTANEW MEXICONEW HAMPSHIREUTAHMARYLAND

WEST VIRGINIAILLINOISRHODE ISLANDMISSISSIPPIMASSACHUSETTS

NEVADA

CONNECTICUTGEORGIA

ARKANSASLOUISIANA

FLORIDAWYOMINGNEW YORK

0%

FOUR-YEAR NET TUITION IS HIGHERNOTES:
1. Net tuition revenue is calculated by taking the gross amount of tuition and fees, less state and institutional financial aid, tuition waivers
or discounts, and medical student tuition and fees.
2. Alaska and the District of Columbia are excluded from this figure because they do not have any public two-year institutions.
3. Fiscal year 2021 includes estimated net tuition revenue for New Jersey and Pennsylvania. Fiscal year 2021 includes estimated two-year
net tuition revenue for Illinois, Massachusetts, and Michigan.
4. Sector is determined at the institution level using the Carnegie Basic Classification (carnegieclassifications.acenet.edu). Baccalaureate/
Associate's Colleges and "less-than-two-year" degree-granting institutions not assigned a Carnegie classification are considered twoyear institutions.
SOURCE: State Higher Education Executive Officers Association

Explore the full context of higher education enrollment and revenues inany state using the SHEF State Profiles on our website. Select your state andchoose a comparison group at shef.sheeo.org/state-profile.

SHEEO: STATE HIGHER EDUCATION FINANCE: FY 2021

62

TABLE 4.1A
PUBLIC HIGHER EDUCATION NET TUITION REVENUE PER FTE BY SECTOR AND STATE,FY 2019-2021 (CONSTANT ADJUSTED DOLLARS)TWO-YEAR TUITION REVENUEALABAMAALASKA
ARIZONA
ARKANSASCALIFORNIACOLORADOCONNECTICUT
DELAWARE
FLORIDAGEORGIAHAWAIIIDAHOILLINOISINDIANAIOWAKANSASKENTUCKYLOUISIANA
MAINE
MARYLANDMASSACHUSETTSMICHIGANMINNESOTAMISSISSIPPIMISSOURIMONTANANEBRASKA
NEVADANEW HAMPSHIRENEW JERSEYNEW MEXICONEW YORKNORTH CAROLINANORTH DAKOTAOHIO
OKLAHOMA
OREGONPENNSYLVANIARHODE ISLAND
SOUTH CAROLINA
SOUTH DAKOTATENNESSEE
TEXAS
UTAH
VERMONTVIRGINIAWASHINGTONWEST VIRGINIA
WISCONSINWYOMING
U.S.
D.C.

2019

2020

2021

INDEX
TO U.S.

$5,600$$2,140$4,471$366$4,394$5,694$5,845$2,806$3,175$2,505$3,591$5,474$3,613$5,811$3,034$4,633$4,091$2,983$3,928$3,225$6,463$5,165$4,741$3,006$1,759$2,891$1,803$5,221$3,049$1,950$4,247$1,909$3,790$3,993$4,163$3,843$4,598$4,638$3,481$3,479$1,916$2,115$3,012$6,154$4,054$2,488$4,136$2,979$2,694$2,752$-$6,000$$2,112$4,582$279$3,889$5,807$5,851$2,702$3,257$2,462$3,358$4,885$3,536$5,400$3,173$4,365$3,970$2,907$3,924$3,490$6,685$5,269$4,829$3,391$1,736$2,871$1,755$5,183$2,977$2,112$4,372$1,806$3,865$3,562$4,262$2,888$4,492$4,646$3,103$3,710$1,983$2,134$2,999$6,248$3,813$2,335$3,856$2,709$2,930$2,649$-$5,997$$2,522$4,547$266$3,934$6,137$5,170$2,647$3,349$2,310$3,175$4,827$3,419$5,456$3,323$4,481$4,307$2,810$4,066$3,191$6,306$5,237$5,169$3,327$1,699$2,821$1,757$4,913$2,948$1,962$4,601$1,756$4,006$3,252$3,973$3,029$4,369$4,583$3,509$3,557$2,025$1,999$2,941$5,647$3,866$2,188$3,889$2,702$2,884$2,604
$-

2.30
N/A
0.97
1.75
0.10
1.51
2.36
1.99
1.02
1.29
0.89
1.22
1.85
1.31
2.09
1.28
1.72
1.65
1.08
1.56
1.23
2.42
2.01
1.98
1.28
0.65
1.08
0.67
1.89
1.13
0.75
1.77
0.67
1.54
1.25
1.53
1.16
1.68
1.76
1.35
1.37
0.78
0.77
1.13
2.17
1.48
0.84
1.49
1.04
1.11
1.00
N/A

FOUR-YEAR TUITION REVENUE% CHANGE
SINCE 2020

% CHANGE
SINCE 2019

2019

2020

2021

INDEX
TO U.S.

% CHANGE
SINCE 2020

% CHANGE
SINCE 2019

-0.1%
N/A
19.4%
-0.8%
-4.4%
1.2%
5.7%
-11.6%
-2.0%
2.8%
-6.2%
-5.4%
-1.2%
-3.3%
1.0%
4.7%
2.6%
8.5%
-3.3%
3.6%
-8.6%
-5.7%
-0.6%
7.0%
-1.9%
-2.1%
-1.7%
0.1%
-5.2%
-1.0%
-7.1%
5.2%
-2.8%
3.7%
-8.7%
-6.8%
4.9%
-2.7%
-1.3%
13.1%
-4.1%
2.1%
-6.3%
-2.0%
-9.6%
1.4%
-6.3%
0.9%
-0.3%
-1.6%
-1.7%
N/A

7.1%
N/A
17.9%
1.7%
-27.3%-10.5%
7.8%-11.5%
-5.7%
5.5%
-7.8%
-11.6%-11.8%
-5.4%
-6.1%
9.5%
-3.3%
5.3%
-5.8%
3.5%
-1.0%
-2.4%
1.4%
9.0%
10.7%
-3.4%
-2.4%
-2.5%
-5.9%
-3.3%
0.6%
8.3%
-8.1%
5.7%
-18.6%-4.6%-21.2%
-5.0%
-1.2%
0.8%
2.2%
5.7%
-5.5%
-2.4%
-8.2%
-4.7%
-12.1%
-6.0%
-9.3%
7.0%
-5.4%
N/A

$18,111$4,799$13,498$8,309$6,323$14,234$13,946$24,032$2,715$6,094$6,287$11,937$10,883$13,240$14,656$10,551$12,038$6,244$8,441$10,040$6,646$19,170$12,750$10,813$9,435$8,890$9,264$3,149$12,328$9,990$5,695$6,935$8,302$10,465$11,807$10,208$11,808$14,296$9,061$15,483$10,094$10,567$8,640$7,520$17,686$11,812$8,844$9,283$9,249$4,827$9,809$5,938$17,551$4,942$12,321$8,368$6,309$14,511$14,616$25,441$2,338$6,083$6,116$9,604$10,826$13,310$14,845$10,315$12,249$5,929$8,463$10,087$6,671$19,635$13,009$10,776$9,475$8,762$9,333$3,178$12,168$9,712$5,926$6,864$7,880$10,703$12,482$10,571$12,649$13,958$9,620$15,272$9,928$10,286$8,518$7,686$17,077$11,724$9,444$9,099$9,175$4,134$9,767$4,727$17,663$4,978$12,439$8,190$5,278$14,191$11,950$22,443$2,148$5,618$6,021$10,015$10,239$13,298$14,656$9,885$11,547$5,942$8,276$9,692$6,481$19,169$12,890$10,498$9,201$8,731$9,144$3,348$11,918$9,577$4,930$6,135$7,547$11,804$12,500$10,300$12,420$13,569$10,333$14,696$9,446$9,711$8,227$6,850$16,481$11,665$8,603$8,843$9,330$3,141$9,295$4,801

1.90
0.54
1.34
0.88
0.57
1.53
1.29
2.41
0.23
0.60
0.65
1.08
1.10
1.43
1.58
1.06
1.24
0.64
0.89
1.04
0.70
2.06
1.39
1.13
0.99
0.94
0.98
0.36
1.28
1.03
0.53
0.66
0.81
1.27
1.34
1.11
1.34
1.46
1.11
1.58
1.02
1.04
0.89
0.74
1.77
1.26
0.93
0.95
1.00
0.34
1.00
0.52

0.6%
0.7%
1.0%
-2.1%
-16.4%-2.2%-18.2%-11.8%
-8.1%
-7.6%
-1.5%
4.3%
-5.4%
-0.1%
-1.3%
-4.2%
-5.7%
0.2%
-2.2%
-3.9%
-2.8%
-2.4%
-0.9%
-2.6%
-2.9%
-0.4%
-2.0%
5.3%
-2.1%
-1.4%
-16.8%-10.6%
-4.2%
10.3%
0.1%
-2.6%
-1.8%
-2.8%
7.4%
-3.8%
-4.9%
-5.6%
-3.4%
-10.9%
-3.5%
-0.5%
-8.9%
-2.8%
1.7%
-24.0%
-4.8%
1.6%

-2.5%
3.7%
-7.8%
-1.4%
-16.5%-0.3%-14.3%-6.6%-20.9%-7.8%-4.2%-16.1%
-5.9%
0.4%
0.0%
-6.3%
-4.1%
-4.8%
-1.9%
-3.5%
-2.5%
0.0%
1.1%
-2.9%
-2.5%
-1.8%
-1.3%
6.3%
-3.3%
-4.1%
-13.4%-11.5%
-9.1%
12.8%
5.9%
0.9%
5.2%
-5.1%
14.0%
-5.1%
-6.4%
-8.1%
-4.8%
-8.9%
-6.8%
-1.2%
-2.7%
-4.7%
0.9%
-34.9%-5.2%-19.1%NOTES:
1. Net tuition revenue is calculated by taking the gross amount of tuition and fees, less state and institutional financial aid, tuition waivers or
discounts, and medical student tuition and fees.
2. The U.S. calculation does not include the District of Columbia. There are no two-year public institutions in Alaska or the District of Columbia.
3. Sector-level data are a recently required component of the SHEF report and are not currently available for years prior to 2019. Sector isdetermined at the institution level using the Carnegie Basic Classification (carnegieclassifications.acenet.edu). Baccalaureate/Associate's
Colleges and "less-than-two-year" degree-granting institutions not assigned a Carnegie classification are considered two-year institutions.
4. Fiscal years 2020 and 2021 include estimated net tuition revenue for New Jersey and Pennsylvania. Fiscal year 2021 includes estimated twoyear net tuition revenue for Illinois, Massachusetts, and Michigan.
5. Adjustment factors to arrive at constant dollar figures include Cost of Living Index (COLI) and Higher Education Cost Adjustment (HECA). The
COLI is not a measure of inflation over time. The Enrollment Mix Index (EMI) is not applied to sector-level data.
SOURCE: State Higher Education Executive Officers Association

SHEEO: STATE HIGHER EDUCATION FINANCE: FY 2021

63

TOTAL EDUCATION REVENUE
Total education revenue is the sum of education appropriations and net tuition, excluding net
tuition revenue used for capital debt service. Visit the SHEF website to view the interactive
education revenue map.36 This map shows total education revenue per FTE across the nation.
TOTAL EDUCATION REVENUE PER FTEIN FY 2021, ADJUSTED

Total education revenue increased 1.1% from 2020 to 2021, reaching an all-time high of $15,959
per FTE. Total education revenue has increased eight out of the last nine years following declines
during the Great Recession and has increased 9.4% since 2001 and 39.2% since the start of the
SHEF dataset in 1980.
Record high total revenue does not indicate that all public institutions have more revenue than everbefore. Following declines in state funding after the last two recessions, institutions varied widely intheir ability to increase tuition revenue (either by increasing rates or out-of-state enrollment). Total
education revenue is at an all-time high in only 18 states and Washington D.C. 37 Many institutions,particularly those most reliant on state funding, have not been able to increase tuition revenue tooffset declines in state funding and are not at an all-time high for total education revenue.38
Additionally, the slight increase in inflation-adjusted total education revenue per FTE in the lastyear is due to federal stimulus funding. Excluding federal stimulus funding, total education
revenue declined 0.3% from 2020 to 2021.

1. STATE COMPARISONS
Total education revenue per FTE ranges from a low of $9,044 in Nevada to over $25,000 in Illinois
and Wyoming, and $39,471 in Washington, D.C. (Figure 4.2).39,40• Public institutions in nine states and Washington, D.C., have more than
$20,000 per FTE in education revenue. These funds are primarily sourced

36. shef.sheeo.org/data-visualizations/map-4-1/?report_page=net-tuition-and-total-education-revenue&modal=map-4_2
37. Data for Washington, D.C., are not available prior to 2011.
38. State Higher Education Executive Officers Association. (2021). Investigating the impacts of state higher education appropriations
and financial aid. sheeo.org/wp-content/uploads/2021/05/SHEEO_ImpactAppropationsFinancialAid.pdf
39. In Illinois, a large portion of education appropriations (which constitute most of the state’s total education revenue) are not available for
operations at public institutions. See the Illinois state spotlight to learn more.
40. Washington, D.C., had high total education revenue in 2021 due to $15,801 per FTE in federal stimulus funding.

SHEEO: STATE HIGHER EDUCATION FINANCE: FY 2021

64

from education appropriations in Alaska, Illinois, Washington, D.C., andWyoming, come mainly from tuition revenue in Alabama, Delaware, Michigan,
and Vermont, and are an even mix of the two sources in Connecticut andMinnesota.
• Total education revenue per FTE decreased in 18 states from 2020 to 2021
(Table 4.2). The largest decrease was in Nevada (13.2%). Nevada’s total
education revenue declines were due to sharp decreases in education
appropriations.
• Total education revenue increased in 32 states and Washington, D.C., this year.
In five states and Washington, D.C., increases were greater than 10%. The largest
increases were in Wyoming (25.6%) and Washington, D.C. (38.5%), both due
entirely to federal stimulus funding.
• Total revenue has increased in 36 states since 2001 and 48 states since 1980.
The two states with inflation-adjusted declines in total education revenue per
FTE since 1980 are Nevada (16.0%) and Alaska (11.0%). In Alabama, Connecticut,
and Illinois, total education revenue per FTE has increased by more than 100%since 1980.

FIGURE 4.2
PUBLIC HIGHER EDUCATION TOTAL EDUCATION REVENUE PER FTE BY STATE, FY 2021
(ADJUSTED)$45,000$39,471$40,000$35,000$30,000$25,000$20,000$15,959$15,000$10,000$9,044$5,000

NEVADAFLORIDALOUISIANA
CALIFORNIA
WEST VIRGINIANEW HAMPSHIRE
OKLAHOMA
ARKANSASMONTANATEXAS
UTAH
GEORGIAARIZONANEW JERSEYRHODE ISLANDMASSACHUSETTS
SOUTH DAKOTAKANSASWASHINGTONCOLORADO
MAINE
U.S.
VIRGINIAOREGONMISSISSIPPINORTH CAROLINA
IOWA
WISCONSIN
INDIANAMARYLANDPENNSYLVANIAKENTUCKYMISSOURI
OHIO
SOUTH CAROLINANEBRASKAHAWAIITENNESSEENEW YORKIDAHONEW MEXICONORTH DAKOTA
ALABAMA
CONNECTICUTMINNESOTAVERMONTALASKAMICHIGAN
DELAWARE
ILLINOISWYOMINGD.C.

$-

NOTES:
1. Total education revenue is the sum of education appropriations and net tuition, excluding net tuition revenue used for capital debt
service. Total education revenue includes federal stimulus funding.
2. The U.S. calculation does not include the District of Columbia.
3. Total education revenue for fiscal year 2021 includes estimated net tuition revenue for Illinois, New Jersey, and Pennsylvania.
4. Adjustment factors to arrive at constant dollar figures include Cost of Living Index (COLI) and Enrollment Mix Index (EMI). The COLI
is not a measure of inflation over time.
SOURCE: State Higher Education Executive Officers Association

SHEEO: STATE HIGHER EDUCATION FINANCE: FY 2021

65

TABLE 4.2
PUBLIC HIGHER EDUCATION TOTAL EDUCATION REVENUE PER FTE BY STATE, FY 1980-2021(CONSTANT ADJUSTED DOLLARS)ALABAMAALASKA
ARIZONA
ARKANSASCALIFORNIACOLORADOCONNECTICUT
DELAWARE
FLORIDAGEORGIAHAWAIIIDAHOILLINOISINDIANAIOWAKANSASKENTUCKYLOUISIANA
MAINE
MARYLANDMASSACHUSETTSMICHIGANMINNESOTAMISSISSIPPIMISSOURIMONTANANEBRASKA
NEVADANEW HAMPSHIRENEW JERSEYNEW MEXICONEW YORKNORTH CAROLINANORTH DAKOTAOHIO
OKLAHOMA
OREGONPENNSYLVANIARHODE ISLAND
SOUTH CAROLINA
SOUTH DAKOTATENNESSEE
TEXAS
UTAH
VERMONTVIRGINIAWASHINGTONWEST VIRGINIA
WISCONSINWYOMING
U.S.
D.C.

1980

2001

2011

2016

2020

2021

% CHANGE
SINCE 2020

% CHANGE
SINCE 2016

% CHANGE
SINCE 2011

% CHANGE
SINCE 2001

% CHANGE
SINCE 1980

$9,762$25,435$10,153$12,388$9,273$8,583$10,270$12,285$8,456$11,476$10,011$14,800$11,370$13,046$13,388$12,457$13,110$11,455$10,298$9,852$10,453$14,233$12,986$11,720$13,765$9,556$11,158$10,768$10,019$9,988$12,947$13,960$12,486$11,290$12,480$10,551$9,617$14,456$13,602$11,950$12,987$11,904$10,327$12,552$12,001$10,087$11,181$9,717$14,003$18,641$11,465
N/A$14,639$17,414$12,952$13,038$10,483$11,275$21,215$19,152$13,374$17,040$11,399$17,621$17,706$16,004$17,082$15,250$18,012$11,201$16,438$15,503$15,331$19,715$15,270$14,742$17,736$10,232$12,852$11,784$14,621$17,618$12,397$15,072$16,647$12,460$17,039$13,151$12,208$19,179$16,135$12,752$15,560$14,550$14,799$11,885$17,313$14,078$11,212$11,005$15,572$16,712$14,588
N/A$16,230$19,724$13,098$13,128$9,312$11,770$19,585$20,151$9,844$12,330$12,911$13,757$19,566$14,534$15,027$13,540$17,670$12,616$15,178$14,116$12,977$18,350$16,098$13,466$14,878$11,312$14,879$11,778$12,192$16,416$13,274$15,580$14,061$15,812$14,407$13,673$10,801$17,207$13,190$13,192$13,922$15,402$13,818$11,912$16,967$13,418$10,748$11,620$14,526$21,147$13,619$23,687$19,248$20,776$14,308$14,433$11,400$14,300$21,407$22,363$10,633$15,167$14,708$17,865$22,047$17,050$15,817$14,102$17,513$11,197$14,782$15,198$13,304$21,516$17,485$15,398$15,420$12,690$17,027$10,925$13,123$17,804$15,051$17,632$16,499$18,470$16,906$14,134$13,270$15,903$14,034$15,374$14,492$16,912$14,605$14,447$18,735$14,090$13,065$12,577$14,644$23,962$15,155$20,993$20,823$21,690$14,038$13,547$12,541$15,463$21,744$25,011$10,546$15,722$17,672$17,970$26,428$16,678$16,076$14,878$17,152$11,714$15,293$16,869$14,563$22,956$18,890$14,738$16,611$13,231$17,504$10,423$12,973$16,016$18,948$18,487$16,040$18,655$16,523$14,710$15,256$16,819$13,685$16,885$16,595$18,194$13,913$15,682$19,171$16,065$14,607$13,038$15,427$23,605$15,784$28,491$20,446$22,625$14,906$14,514$12,392$15,772$21,559$23,313$10,625$14,827$18,131$18,571$26,318$16,535$16,245$15,749$17,009$11,797$15,822$16,851$15,257$23,119$21,690$16,154$17,032$14,594$17,887$9,044$13,837$15,122$18,819$18,191$16,186$19,695$17,220$13,967$16,031$16,947$15,224$17,704$15,679$18,138$14,606$14,755$22,142$15,992$15,756$13,179$16,358$29,649$15,959$39,471

-1.8%
4.3%
6.2%
7.1%
-1.2%
2.0%
-0.8%
-6.8%
0.7%
-5.7%
2.6%
3.3%
-0.4%
-0.9%
1.1%
5.9%
-0.8%
0.7%
3.5%
-0.1%
4.8%
0.7%
14.8%
9.6%
2.5%
10.3%
2.2%
-13.2%
6.7%
-5.6%
-0.7%
-1.6%
0.9%
5.6%
4.2%
-5.0%
5.1%
0.8%
11.2%
4.9%
-5.5%
-0.3%
5.0%
-5.9%
15.5%
-0.5%
7.9%
1.1%
6.0%
25.6%
1.1%
38.5%

6.2%
8.9%
4.2%
0.6%
8.7%
10.3%
0.7%
4.2%
-0.1%
-2.2%
23.3%
4.0%
19.4%
-3.0%
2.7%
11.7%
-2.9%
5.4%
7.0%
10.9%
14.7%
7.4%
24.0%
4.9%
10.5%
15.0%
5.1%
-17.2%
5.4%-15.1%
25.0%
3.2%
-1.9%
6.6%
1.9%
-1.2%
20.8%
6.6%
8.5%
15.2%
8.2%
7.2%
0.0%
2.1%
18.2%
13.5%
20.6%
4.8%
11.7%
23.7%
5.3%
88.0%

26.0%
14.7%
13.8%
10.6%
33.1%
34.0%
10.1%
15.7%
7.9%
20.2%
40.4%
35.0%
34.5%
13.8%
8.1%
16.3%
-3.7%
-6.5%
4.2%
19.4%
17.6%
26.0%
34.7%
20.0%
14.5%
29.0%
20.2%
-23.2%
13.5%
-7.9%
41.8%
16.8%
15.1%
24.6%
19.5%
2.2%
48.4%
-1.5%
15.4%
34.2%
12.6%
17.8%
5.7%
23.9%
30.5%
19.2%
46.6%
13.4%
12.6%
40.2%
17.2%
66.6%

39.7%
29.9%
15.1%
11.3%
18.2%
39.9%
1.6%
21.7%
-20.6%-13.0%
59.1%
5.4%
48.6%
3.3%
-4.9%
3.3%
-5.6%
5.3%
-3.7%
8.7%
-0.5%
17.3%
42.0%
9.6%
-4.0%
42.6%
39.2%
-23.2%-5.4%-14.2%
51.8%
20.7%
-2.8%
58.1%
1.1%
6.2%
31.3%
-11.6%
-5.6%
38.8%
0.8%
24.7%
-1.3%
24.2%
27.9%
13.6%
40.5%
19.8%
5.0%
77.4%
9.4%
N/A

109.4%-11.0%
46.8%
17.2%
33.6%
83.8%
109.9%
89.8%
25.7%
29.2%
81.1%
25.5%
131.5%
26.7%
21.3%
26.4%
29.7%
3.0%
53.6%
71.0%
46.0%
62.4%
67.0%
37.8%
23.7%
52.7%
60.3%
-16.0%
38.1%
51.4%
45.4%
30.3%
29.6%
74.4%
38.0%
32.4%
66.7%
17.2%
11.9%
48.1%
20.7%
52.4%
41.4%
17.6%
84.5%
58.5%
40.9%
35.6%
16.8%
59.1%
39.2%
N/A

NOTES:
1. Total education revenue is the sum of education appropriations and net tuition, excluding net tuition revenue used for capitaldebt service. Total education revenue includes federal stimulus funding.
2. The U.S. calculation does not include the District of Columbia. Data for the District of Columbia are not available prior to 2011.
3. The years 1980 and 2001 are included in this table because they are the starting points of the historical SHEF dataset and modern
SHEF data collection, respectively.
4. Total education revenue for fiscal years 2020 and 2021 includes estimated net tuition revenue for New Jersey and Pennsylvania.
Fiscal year 2021 includes estimated net tuition revenue for Illinois.
5. Adjustment factors to arrive at constant dollar figures include Cost of Living Index (COLI), Enrollment Mix Index (EMI), and Higher
Education Cost Adjustment (HECA). The COLI is not a measure of inflation over time.
SOURCE: State Higher Education Executive Officers Association

SHEEO: STATE HIGHER EDUCATION FINANCE: FY 2021

66

2. SECTOR COMPARISONS
Table 4.2A presents new data on total education revenue per FTE for the two- and four-year
public sectors separately.
At two-year public institutions, total education revenue averaged $11,928 per FTE, up 8.0% from2020. Total revenue ranged from $6,768 in Nevada to $21,601 in Wyoming. Ten states had an
average total revenue of less than $10,000 per FTE at two-year institutions. In nine states, twoyear total revenue was greater than $15,000 per FTE; only Wyoming was greater than $20,000
per FTE.
Two-year total education revenue declined in 10 states from 2020 to 2021. The largest declines,
both above 10%, were in Nevada (11.1%) and Oklahoma (10.3%). Of the 39 states with increases,
two were above 20%: Minnesota (22.7%) and Mississippi (24.7%). In both states, these increases
were primarily due to federal stimulus funds, which supplemented additional state support.
Total education revenue at four-year institutions averaged $18,021 in 2021, a 2.3% decline
from 2020 and 1.2% decline from 2019. Four-year institutions had, on average, 1.51 times theamount of total revenue per FTE of two-year institutions. Nevada and Louisiana had the lowest
revenue per FTE ($11,131 and $12,004, respectively). Fourteen states and Washington, D.C., had
total revenue greater than $20,000—and Illinois, Washington, D.C., and Wyoming had more than
$30,000 per FTE. 41
In the last year, four-year total education revenue declined in 27 states. Three states had declines
greater than 10%: California (12.0%), Nevada (10.6%), and New Mexico (10.6%). In California and New
Mexico, the decline was due to decreases in both tuition revenue and education appropriations. In
Nevada, the decline was due to decreases in education appropriations alone.
Figure 4.2A displays the disparity in total education revenue per FTE between each state’s twoyear and four-year public sectors. Only Wisconsin is on the figure’s left side (the light blue bar),with 9.8% higher total education revenue in the two-year sector. All other states are on the figure’s
right side (the dark blue bars), with relatively higher total education revenue per FTE in the fouryear sector. New Jersey had the largest disparity in total education revenue across sectors, wherefour-year institutions had 2.5 times the total revenue of two-year institutions.

41. A large portion of education appropriations in Illinois are not available for operations at public institutions. See the Illinois state spotlightto learn more.

SHEEO: STATE HIGHER EDUCATION FINANCE: FY 2021

67

FIGURE 4.2A
PERCENT DIFFERENCE IN TWO-YEAR AND FOUR-YEAR PUBLIC HIGHER EDUCATION TOTALEDUCATION REVENUE PER FTE BY STATE, FY 2021

90%

FOUR-YEAR
86.9% HIGHER

80%
70%
60%

FOUR-YEAR
40.7% HIGHER

50%
40%
30%

TWO-YEAR
9.8% HIGHER

20%

INDIANANEW JERSEYVERMONT

IOWA

IDAHO

VIRGINIA

SOUTH CAROLINAOHIOMONTANA

DELAWARE

NORTH CAROLINACOLORADOFLORIDAKENTUCKY

SOUTH DAKOTAILLINOISTENNESSEEPENNSYLVANIAALABAMANEVADA

OKLAHOMANORTH DAKOTAWASHINGTONRHODE ISLANDU.S.

TWO-YEAR REVENUE IS HIGHER

TEXAS

MAINE

GEORGIAWYOMINGMICHIGANLOUISIANAMISSOURI

MINNESOTAMASSACHUSETTS

HAWAIIMARYLANDOREGONCALIFORNIANEW YORKNEW HAMPSHIREKANSASMISSISSIPPICONNECTICUTUTAHNEW MEXICO

ARKANSASARIZONANEBRASKA

0%

WISCONSIN

10%
WEST VIRGINIAPERCENT DIFFERENCE PER FTE

100%

FOUR-YEAR REVENUE IS HIGHERNOTES:
1. Total education revenue is the sum of education appropriations and net tuition, excluding net tuition revenue used for capital debt
service. Sector-level total education revenue includes any portion of federal stimulus funding allocated specifically to each sector.
2. Alaska and the District of Columbia are excluded from this figure because they do not have any public two-year institutions.
3. Total education revenue for fiscal year 2021 includes estimated net tuition revenue for New Jersey, and Pennsylvania. Fiscal year 2021
total education revenue includes estimated two-year net tuition revenue for Illinois, Massachusetts, and Michigan.
4. Sector is determined at the institution level using the Carnegie Basic Classification (carnegieclassifications.acenet.edu). Baccalaureate/
Associate's Colleges and "less-than-two-year" degree-granting institutions not assigned a Carnegie classification are considered twoyear institutions.
SOURCE: State Higher Education Executive Officers Association

Visit the SHEF website (shef.sheeo.org) to download all state- andsector-level data used in this report.

SHEEO: STATE HIGHER EDUCATION FINANCE: FY 2021

68

TABLE 4.2A
PUBLIC HIGHER EDUCATION TOTAL EDUCATION REVENUE PER FTE BY SECTOR AND STATE,FY 2019-2021 (CONSTANT ADJUSTED DOLLARS)TWO-YEAR TOTAL REVENUEALABAMAALASKA
ARIZONA
ARKANSASCALIFORNIACOLORADOCONNECTICUT
DELAWARE
FLORIDAGEORGIAHAWAIIIDAHOILLINOISINDIANAIOWAKANSASKENTUCKYLOUISIANA
MAINE
MARYLANDMASSACHUSETTSMICHIGANMINNESOTAMISSISSIPPIMISSOURIMONTANANEBRASKA
NEVADANEW HAMPSHIRENEW JERSEYNEW MEXICONEW YORKNORTH CAROLINANORTH DAKOTAOHIO
OKLAHOMA
OREGONPENNSYLVANIARHODE ISLAND
SOUTH CAROLINA
SOUTH DAKOTATENNESSEE
TEXAS
UTAH
VERMONTVIRGINIAWASHINGTONWEST VIRGINIA
WISCONSINWYOMING
U.S.
D.C.

2019

2020

2021

INDEX
TO U.S.

$12,463$$12,010$11,922$9,216$10,542$14,706$14,988$7,683$10,269$13,054$9,234$18,021$9,435$10,570$11,973$10,616$7,846$10,495$11,674$10,019$16,396$11,905$11,088$9,901$7,332$14,254$7,955$9,895$7,126$12,375$13,251$10,175$11,085$11,915$10,009$11,776$10,143$9,561$10,147$8,574$11,048$9,414$12,442$8,870$8,989$9,175$11,084$15,078$19,751$10,886$-$14,674$$12,420$11,894$8,931$10,071$15,215$15,840$7,647$10,358$13,291$9,274$18,587$9,374$10,613$12,520$10,480$7,740$10,323$12,390$10,895$17,486$12,841$11,480$12,009$7,784$15,459$7,618$11,193$7,584$14,356$13,430$9,858$11,743$10,931$10,962$11,980$10,359$8,997$10,580$9,611$11,245$9,789$13,226$9,199$9,271$10,046$11,706$16,099$19,326$11,048$-$14,286$$14,072$12,650$10,042$10,476$18,086$15,444$7,877$10,671$13,737$9,354$18,458$9,287$11,065$13,842$10,923$8,268$11,201$13,243$11,553$18,179$15,749$14,314$12,950$8,923$16,262$6,768$11,705$7,425$16,351$14,579$10,445$12,004$10,598$9,831$13,079$10,901$10,082$11,147$8,980$11,934$10,933$12,761$10,796$9,463$11,976$12,905$17,153$21,601$11,928
$-

1.20
N/A
1.18
1.06
0.84
0.88
1.52
1.29
0.66
0.89
1.15
0.78
1.55
0.78
0.93
1.16
0.92
0.69
0.94
1.11
0.97
1.52
1.32
1.20
1.09
0.75
1.36
0.57
0.98
0.62
1.37
1.22
0.88
1.01
0.89
0.82
1.10
0.91
0.85
0.93
0.75
1.00
0.92
1.07
0.91
0.79
1.00
1.08
1.44
1.81
1.00
N/A

FOUR-YEAR TOTAL REVENUE% CHANGE
SINCE 2020

% CHANGE
SINCE 2019

2019

2020

2021

INDEX
TO U.S.

% CHANGE
SINCE 2020

% CHANGE
SINCE 2019

-2.6%
N/A
13.3%
6.4%
12.4%
4.0%
18.9%
-2.5%
3.0%
3.0%
3.4%
0.9%
-0.7%
-0.9%
4.3%
10.6%
4.2%
6.8%
8.5%
6.9%
6.0%
4.0%
22.7%
24.7%
7.8%
14.6%
5.2%
-11.1%
4.6%
-2.1%
13.9%
8.6%
6.0%
2.2%
-3.0%
-10.3%
9.2%
5.2%
12.1%
5.4%
-6.6%
6.1%
11.7%
-3.5%
17.4%
2.1%
19.2%
10.2%
6.5%
11.8%
8.0%
N/A

14.6%
N/A
17.2%
6.1%
9.0%
-0.6%
23.0%
3.0%
2.5%
3.9%
5.2%
1.3%
2.4%
-1.6%
4.7%
15.6%
2.9%
5.4%
6.7%
13.4%
15.3%
10.9%
32.3%
29.1%
30.8%
21.7%
14.1%
-14.9%
18.3%
4.2%
32.1%
10.0%
2.7%
8.3%
-11.1%
-1.8%
11.1%
7.5%
5.5%
9.9%
4.7%
8.0%
16.1%
2.6%
21.7%
5.3%
30.5%
16.4%
13.8%
9.4%
9.6%
N/A

$24,163$20,714$16,564$15,473$15,112$18,458$23,878$29,407$14,754$16,553$19,528$21,338$29,884$20,134$21,295$16,746$19,934$12,745$16,096$18,202$15,139$25,777$20,856$17,581$17,008$15,211$18,703$12,208$14,680$20,302$20,333$20,554$21,015$17,985$18,055$16,492$16,457$19,387$14,065$19,971$15,723$20,606$16,643$15,641$19,773$18,288$17,201$13,605$14,886$23,846$18,245$24,179$23,894$21,053$15,379$13,864$15,703$19,141$24,785$31,484$14,415$16,836$18,936$18,235$30,945$19,944$21,818$16,791$20,292$12,249$16,370$19,051$15,422$26,236$21,580$17,861$18,146$15,568$18,986$12,448$14,893$20,633$22,481$20,525$20,294$18,515$18,740$16,820$17,704$19,130$14,603$20,701$16,456$20,905$15,941$16,421$19,980$19,546$18,497$14,047$14,696$23,596$18,440$26,948$23,774$21,960$15,750$15,004$13,818$19,209$22,886$28,887$13,970$15,518$19,077$18,764$30,817$19,452$21,655$17,163$19,658$12,004$16,556$18,393$16,211$26,046$22,417$18,076$18,303$17,004$18,958$11,131$15,791$18,835$20,092$19,142$19,643$19,650$20,091$16,294$18,001$18,915$15,907$21,467$15,608$20,375$16,546$15,243$21,869$19,090$18,242$14,016$15,547$31,692$18,021$32,985

1.32
1.22
0.87
0.83
0.77
1.07
1.27
1.60
0.78
0.86
1.06
1.04
1.71
1.08
1.20
0.95
1.09
0.67
0.92
1.02
0.90
1.45
1.24
1.00
1.02
0.94
1.05
0.62
0.88
1.05
1.11
1.06
1.09
1.09
1.11
0.90
1.00
1.05
0.88
1.19
0.87
1.13
0.92
0.85
1.21
1.06
1.01
0.78
0.86
1.76
1.00
1.83

-0.5%
4.3%
2.4%
8.2%
-12.0%
0.4%
-7.7%
-8.2%
-3.1%
-7.8%
0.7%
2.9%
-0.4%
-2.5%
-0.7%
2.2%
-3.1%
-2.0%
1.1%
-3.5%
5.1%
-0.7%
3.9%
1.2%
0.9%
9.2%
-0.1%
-10.6%
6.0%-8.7%-10.6%
-6.7%
-3.2%
6.1%
7.2%
-3.1%
1.7%
-1.1%
8.9%
3.7%
-5.2%
-2.5%
3.8%
-7.2%
9.5%
-2.3%
-1.4%
-0.2%
5.8%
34.3%
-2.3%
22.4%

-1.6%
6.0%
-4.9%
-3.0%
-8.6%
4.1%
-4.2%
-1.8%
-5.3%
-6.2%
-2.3%
-12.1%
3.1%
-3.4%
1.7%
2.5%
-1.4%
-5.8%
2.9%
1.1%
7.1%
1.0%
7.5%
2.8%
7.6%
11.8%
1.4%
-8.8%
7.6%
-7.2%
-1.2%
-6.9%
-6.5%
9.3%
11.3%
-1.2%
9.4%
-2.4%
13.1%
7.5%
-0.7%
-1.1%
-0.6%
-2.5%
10.6%
4.4%
6.1%
3.0%
4.4%
32.9%
-1.2%
36.4%

NOTES:
1. Total education revenue is the sum of education appropriations and net tuition, excluding net tuition revenue used for capital debt
service. Sector-level total education revenue includes any portion of federal stimulus funding allocated specifically to each sector.
2. The U.S. calculation does not include the District of Columbia. There are no two-year public institutions in Alaska or the Districtof Columbia.
3. Sector-level data are recently required components of the SHEF data collection and are not currently available for years prior to 2019.
4. Sector is determined at the institution level using the Carnegie Basic Classification (carnegieclassifications.acenet.edu).
Baccalaureate/Associate's Colleges and "less-than-two-year" degree-granting institutions not assigned a Carnegie classification are
considered two-year institutions.
5. Fiscal years 2020 and 2021 total education revenue include estimated net tuition revenue for New Jersey and Pennsylvania. Fiscal
year 2021 includes estimated net tuition revenue for Illinois.
6. Adjustment factors to arrive at constant dollar figures include Cost of Living Index (COLI) and Higher Education Cost Adjustment(HECA). The COLI is not a measure of inflation over time. The Enrollment Mix Index (EMI) is not applied to sector-level data.
SOURCE: State Higher Education Executive Officers Association

SHEEO: STATE HIGHER EDUCATION FINANCE: FY 2021

69

STUDENT SHARE
Net tuition as a percentage of total education revenue (the student share) shows the overall relianceof public institutions on tuition as a revenue source. Net tuition excludes state and institutional
financial aid but does not exclude federal financial aid or loans. Visit the SHEF website to view theinteractive student share map. 42 This map shows the student share for students attending twoand four-year institutions across the nation.
STUDENT SHAREIN FY 2021

The student share has consistently increased over time due to declines in education appropriations
and net tuition revenue increases. In 1980 (the earliest available data), the student share was 20.9%.
By 2001 (the start of the modern SHEF data collection and a pre-recession high point in education
appropriations), the student share had already increased to 29.0%. In 2021, the U.S. average student
share was 42.1%. This means that, on average, 42.1% of revenues at public institutions came fromstudent tuition and fees. Excluding federal stimulus funding, the student share in 2021 was 43.0%.

1. STATE COMPARISONS
There is wide variation in the student share across states. In 2021, 20 states had a student shareabove 50%. This is a notable decrease after a four-year trend (fiscal years 2017-2020) in which
at least half of all states had a student share above 50%. However, excluding federal stimulus
funds from total education revenue would result in four additional states (Louisiana, Minnesota,
Mississippi, and Montana) having a student share above 50% in 2021. Only one state, Delaware(70.8%), had a student share above 70%. Conversely, six states and Washington, D.C., had a student
share below 25% (Figure 4.3).
From 2020 to 2021, student share decreased in 40 states and Washington, D.C. Over the last five
years, seven states (Arkansas, Connecticut, Kansas, Minnesota, Mississippi, Montana, and New
Jersey) reduced the student share in their state from more to less than 50%. This was in part due tofederal stimulus funding. It is not yet clear how these trends will continue following the depletionof federal stimulus dollars, but these decreases in student share indicate that states are making
efforts to address college affordability. Still, over the last 10 years, the student share has increased
in 23 states—and it has increased in all but three states (Florida, Vermont, and Wyoming) since2001 (Table 4.3).

42. shef.sheeo.org/report/?report_page=net-tuition-and-total-education-revenue#student-share

SHEEO: STATE HIGHER EDUCATION FINANCE: FY 2021

70

TABLE 4.3
NET TUITION AS A PERCENT OF TOTAL EDUCATION REVENUE BY STATE, FY 1980-2021

ALABAMAALASKA
ARIZONA
ARKANSASCALIFORNIACOLORADOCONNECTICUT
DELAWARE
FLORIDAGEORGIAHAWAIIIDAHOILLINOISINDIANAIOWAKANSASKENTUCKYLOUISIANA
MAINE
MARYLANDMASSACHUSETTSMICHIGANMINNESOTAMISSISSIPPIMISSOURIMONTANANEBRASKA
NEVADANEW HAMPSHIRENEW JERSEYNEW MEXICONEW YORKNORTH CAROLINANORTH DAKOTAOHIO
OKLAHOMA
OREGONPENNSYLVANIARHODE ISLAND
SOUTH CAROLINA
SOUTH DAKOTATENNESSEE
TEXAS
UTAH
VERMONTVIRGINIAWASHINGTONWEST VIRGINIA
WISCONSINWYOMING
U.S.
D.C.

1980

2001

2011

2016

2020

2021

CHANGESINCE 2020

CHANGESINCE 2016

CHANGESINCE 2011

CHANGESINCE 2001

CHANGESINCE 1980

26.7%
9.4%
21.3%
23.5%
7.5%
36.6%
21.4%
37.9%
20.1%
18.2%
8.5%
14.4%
16.4%
27.6%
24.5%
23.2%
20.6%
18.5%
32.1%
26.4%
22.8%
29.7%
18.4%
25.8%
22.0%
20.8%
22.3%
19.0%
54.3%
19.9%
16.1%
19.6%
16.5%
22.6%
32.8%
19.8%
24.8%
32.0%
23.4%
19.4%
27.4%
22.5%
18.6%
19.9%
62.3%
24.1%
20.3%
19.0%
26.3%
14.0%
20.9%
N/A

42.4%
18.2%
32.8%
26.4%
10.2%
41.6%
25.4%
53.9%
23.4%
15.1%
19.6%
23.5%
18.6%
41.4%
35.2%
28.4%
29.8%
26.3%
37.2%
37.2%
29.0%
37.7%
29.7%
28.1%
27.5%
42.9%
32.8%
22.4%
65.4%
38.6%
11.1%
29.7%
18.9%
40.4%
40.9%
21.3%
35.9%
48.7%
44.0%
38.1%
42.7%
33.6%
34.0%
26.6%
76.8%
32.3%
23.6%
39.2%
25.8%
21.6%
29.0%
N/A

60.4%
23.5%
46.5%
35.8%
18.1%
66.0%
33.6%
70.5%
30.5%
26.3%
31.5%
38.4%
33.6%
58.0%
59.1%
47.1%
50.8%
26.8%
51.4%
50.5%
48.4%
62.5%
58.0%
42.8%
46.3%
52.6%
38.3%
27.9%
74.7%
51.1%
27.2%
32.5%
26.2%
49.6%
57.1%
35.5%
56.5%
66.6%
61.5%
62.5%
57.0%
39.5%
37.5%
44.8%
83.7%
53.3%
40.5%
53.7%
38.1%
11.5%
42.2%
27.4%

70.8%
23.0%
61.4%
46.1%
23.9%
68.6%
50.0%
75.0%
34.4%
37.8%
31.9%
47.4%
38.9%
61.3%
61.8%
52.1%
55.6%
44.8%
47.7%
49.5%
43.2%
66.2%
56.1%
48.7%
48.9%
52.8%
39.7%
33.9%
78.5%
56.5%
23.7%
36.6%
34.3%
48.2%
59.3%
48.2%
60.0%
70.8%
61.4%
65.9%
59.8%
46.2%
40.2%
45.7%
87.9%
60.2%
45.6%
64.4%
46.6%
12.8%
46.6%
29.1%

65.5%
23.5%
61.1%
53.2%
23.6%
67.2%
54.4%
74.6%
23.0%
33.4%
25.2%
45.6%
31.8%
62.0%
63.1%
49.5%
56.3%
46.5%
46.7%
46.6%
40.2%
66.6%
52.8%
53.6%
46.4%
52.6%
40.5%
23.4%
74.2%
45.7%
21.9%
32.9%
32.4%
51.5%
60.2%
57.4%
56.0%
66.1%
62.1%
63.7%
55.1%
39.5%
40.4%
42.7%
83.8%
55.0%
40.6%
59.0%
45.6%
16.3%
44.0%
17.3%

66.9%
22.7%
61.1%
49.1%
20.4%
65.4%
47.6%
70.8%
21.7%
33.6%
24.2%
45.5%
30.4%
62.8%
62.4%
45.9%
54.7%
47.4%
44.9%
46.3%
37.0%
64.5%
45.8%
49.5%
44.2%
47.6%
39.3%
28.2%
68.4%
48.7%
19.6%
31.7%
31.5%
53.6%
56.1%
58.2%
53.9%
64.0%
59.7%
60.4%
55.6%
38.7%
38.1%
40.9%
69.7%
55.4%
34.7%
57.5%
44.3%
11.1%
42.1%
12.7%

1.5
-0.8
-0.1
-4.1
-3.2
-1.9
-6.7
-3.8
-1.4
0.2
-1.0
-0.1
-1.4
0.8
-0.8
-3.5
-1.5
0.8
-1.8
-0.3
-3.2
-2.0
-7.0
-4.1
-2.2
-5.0
-1.2
4.9
-5.8
3.1
-2.4
-1.3
-0.9
2.1
-4.2
0.8
-2.1
-2.1
-2.4
-3.3
0.4
-0.7
-2.3
-1.8
-14.1
0.4
-6.0
-1.5
-1.3
-5.2
-1.9
-4.6

-3.8
-0.3
-0.3
3.0
-3.5
-3.2
-2.4
-4.2
-12.7
-4.2
-7.7
-1.9
-8.4
1.6
0.5
-6.2
-0.8
2.5
-2.9
-3.2
-6.2
-1.7
-10.4
0.8
-4.7
-5.2
-0.5
-5.6
-10.1
-7.7
-4.1
-4.9
-2.8
5.5
-3.2
10.0
-6.1
-6.8
-1.7
-5.5
-4.3
-7.5
-2.1
-4.8
-18.2
-4.8
-11.0
-6.9
-2.3
-1.7
-4.4
-16.4

6.6
-0.8
14.6
13.3
2.4
-0.6
14.1
0.3
-8.8
7.3
-7.3
7.2
-3.2
4.8
3.2
-1.2
3.9
20.5
-6.6
-4.2
-11.4
2.0
-12.2
6.7
-2.1
-5.0
0.9
0.3
-6.2
-2.4
-7.6
-0.8
5.3
4.0
-1.0
22.7
-2.6
-2.5
-1.8
-2.1
-1.4
-0.8
0.6
-3.9
-14.0
2.1
-5.9
3.8
6.2
-0.4
-0.1
-14.7

24.5
4.5
28.2
22.7
10.3
23.8
22.3
17.0
-1.8
18.5
4.6
22.1
11.8
21.4
27.2
17.5
25.0
21.0
7.7
9.1
8.0
26.8
16.1
21.4
16.7
4.7
6.5
5.9
3.1
10.1
8.5
2.0
12.5
13.2
15.1
36.9
18.0
15.3
15.6
22.3
12.8
5.1
4.1
14.3
-7.1
23.2
11.1
18.3
18.5
-10.6
13.2
N/A

40.3
13.3
39.8
25.6
12.9
28.7
26.2
33.0
1.6
15.4
15.6
31.1
14.0
35.2
37.9
22.8
34.1
28.8
12.7
19.9
14.2
34.9
27.3
23.7
22.2
26.8
17.0
9.3
14.1
28.9
3.4
12.1
15.0
31.0
23.2
38.4
29.1
32.0
36.3
41.0
28.1
16.2
19.5
21.0
7.4
31.4
14.3
38.5
18.0
-2.9
21.2
N/A

NOTES:
1. The student share is a measure of the proportion of total education revenue at public institutions coming from net tuition revenue.
Net tuition revenue used for capital debt service is included in net tuition revenue, but excluded from total education revenue incalculating the above figures. Total education revenue includes federal stimulus funding.
2. Year change columns show percentage point increases or decreases, not percent change.
3. The U.S. calculation does not include the District of Columbia. Data for the District of Columbia are not available prior to 2011.
4. The years 1980 and 2001 are included in this table because they are the starting points of the historical SHEF dataset and modern
SHEF data collection, respectively.
5. Fiscal years 2020 and 2021 include estimated net tuition revenue for New Jersey and Pennsylvania. Fiscal year 2021 includes
estimated net tuition revenue for Illinois.
SOURCE: State Higher Education Executive Officers Association

SHEEO: STATE HIGHER EDUCATION FINANCE: FY 2021

71

FIGURE 4.3
NET TUITION AS A PERCENT OF TOTAL EDUCATION REVENUE BY STATE, FY 2021
80%

70.8%

70%
60%
50%

42.1%

40%
30%
20%

11.1%
10%

WYOMING
D.C.
NEW MEXICOCALIFORNIAFLORIDAALASKAHAWAII
NEVADAILLINOISNORTH CAROLINANEW YORKGEORGIAWASHINGTONMASSACHUSETTSTEXASTENNESSEENEBRASKAUTAHU.S.
MISSOURI
WISCONSIN
MAINE
IDAHO
MINNESOTAKANSASMARYLANDLOUISIANA
MONTANA
CONNECTICUTNEW JERSEY
ARKANSASMISSISSIPPINORTH DAKOTA
OREGONKENTUCKYVIRGINIA
SOUTH DAKOTA
OHIOWEST VIRGINIAOKLAHOMARHODE ISLAND
SOUTH CAROLINAARIZONAIOWA
INDIANAPENNSYLVANIAMICHIGAN
COLORADOALABAMANEW HAMPSHIREVERMONTDELAWARE

0%NOTES:
1. The student share is a measure of the proportion of total education revenue at public institutions coming from net tuition revenue.
Net tuition revenue used for capital debt service is included in net tuition revenue, but excluded from total education revenue incalculating the above figures. Total education revenue includes federal stimulus funding.
2. Fiscal year 2021 includes estimated net tuition revenue for Illinois, New Jersey, and Pennsylvania.
SOURCE: State Higher Education Executive Officers Association

2. SECTOR COMPARISONS
The student share is perhaps the most dramatically different SHEF metric when comparing twoand four-year public institutions. At two-year institutions, the fiscal year 2021 student share wasless than a quarter (21.8%); it was over half (51.6%) at four-year institutions (Table 4.3A).
• The student share at two-year institutions is generally between 15% and 50%.
Only California (2.7%) has a student share of less than 10%. New Mexico (12.0%)
and Wyoming (13.3%) each reported student shares less than 15%. On the other
hand, two states have a two-year student share greater than 50%: Louisiana(52.1%) and Vermont (52.3%).
• At four-year institutions, student share ranged from 9.9% in Wyoming to 79.0%
in Arizona. In 31 states, the four-year student share is greater than 50%. In fourstates, the four-year student share is greater than 75%: Vermont (75.4%), New
Hampshire (75.5%), Delaware (77.7%), and Arizona (79.0%).
Figure 4.3A shows the difference between the student share at each state’s two- and four-year
public institutions. On the figure’s left side, the light blue bars show states with a higher two-year
student share. Most states have a higher four-year student share (the dark blue bars). On average,
the four-year student share is 29.7 percentage points above the two-year student share. The
four-year student share is greater than the two-year student share in all but three states: Florida,
Louisiana, and Wyoming. Arizona has the greatest difference in student share across institution
types, where the four-year student share of 79.0% is 61.1 percentage points higher than the twoyear student share of 17.9%.

SHEEO: STATE HIGHER EDUCATION FINANCE: FY 2021

72

FIGURE 4.3A
DIFFERENCE IN TWO-YEAR AND FOUR-YEAR NET TUITION AS A PERCENT OF TOTALEDUCATION REVENUE BY STATE, FY 2021
FOUR-YEAR
61.1% HIGHER

60%
50%
40%

FOUR-YEAR
29.7% HIGHER

30%

TWO-YEAR
18.2% HIGHER

20%
10%

NH

TWO-YEAR STUDENT SHARE IS HIGHERARIZONA

OREGONWISCONSINMICHIGAN

DELAWARE

COLORADO

SOUTH CAROLINAKANSASCALIFORNIANEW HAMPSHIREALABAMA

WEST VIRGINIAOHIOINDIANATEXAS

NEBRASKAU.S.

TENNESSEEWASHINGTONMAINENORTH DAKOTAMISSOURIVERMONTMINNESOTAMARYLANDOKLAHOMAUTAHMISSISSIPPINORTH CAROLINAVIRGINIA

SOUTH DAKOTAIDAHORHODE ISLAND

IOWA

ARKANSAS

CONNECTICUTHAWAIIKENTUCKYNEW MEXICOMASSACHUSETTSILLINOISNEW JERSEYNEVADAGEORGIALOUISIANA

NEW YORKFLORIDAILMIWYOMINGWA

MONTANA

IL

0%

AZ

PENNSYLVANIAPERCENTAGE POINT DIFFERENCE

70%

EDUCATION APPROPRIATIONSUSED FOR PENSIONS
2021
41.9%

FOUR-YEAR STUDENT SHARE IS HIGHER

2009:

12.4%
NOTES:
1. The student share is a measure of the proportion of total education revenue at public institutions coming from net tuition revenue.
Net tuition revenue used for capital debt service is included in net tuition revenue, but excluded from total education revenue incalculating the above figures. Total education revenue includes federal stimulus funding.
CO
2. Percentage point differences show the number of percentage points by which the student share is higher at either two- or four-year
AZ
institutions, not the percent difference between the two.
FEDERAL CONTRIBUTIONS TO
3. Alaska and the District of Columbia are excluded from this figure because they do not have any public two-year
institutions.
EDUCATION
APPROPRIATIONS PER FTE
NC
4. Fiscal year 2021 include estimated net tuition revenue for New Jersey and Pennsylvania. Fiscal year 2021 includes estimated
two19%
year net tuition revenue for Illinois, Massachusetts, and Michigan.
42%
46%
13%
5. Sector is determined at the institution level using the Carnegie Basic Classification (carnegieclassifications.acenet.edu).
Baccalaureate/Associate's Colleges and "less-than-two-year" degree-granting institutions not assigned a Carnegie classification are
KYconsidered two-year institutions.
SOURCE: State Higher Education Executive Officers Association
2008

FL

STATE SPOTLIGHT: CALIFORNIA

2009

2010

2011

2012

2020

2021

MI

TWO-YEAR, FOUR-YEAR, AND
UNCATEGORIZABLE STATE
PUBLICFINANCIALAID
National trends in the two-year student share (net tuition as a percentage
of total
educationCACOrevenue) are greatly impacted by California, which enrolls more than 20% of the nation’s
two-year enrollment. California dampens national two-year trends in two ways.
First, California has the lowest two-year student share by far, with student tuition revenue
comprising only 2.7% of total education revenue. California’s low student
due2019 share is 2020
primarily to the state having among the lowest community college tuition charges in thenation and its practice of waiving tuition for low-income students. Excluding California
CAfrom the data increases the national two-year student sharefrom 21.8% to 28.1%.
TWO-YEAR STUDENT SHARE
Second, in stark contrast to most other states facing longterm increases in student share, California’s student shareat two-year public institutions has declined 1.9 percentage
points since 2001. The decline in California’s student shareis due to a decline in gross tuition revenue (in constant 2021
dollars) and recent increases in state-funded financial aid forcommunity college students.

SHEEO: STATE HIGHER EDUCATION FINANCE: FY 2021

2021

2001:
4.5%

2021:
2.7%

73

TABLE 4.3A
NET TUITION AS A PERCENT OF TOTAL EDUCATION REVENUE BY SECTOR AND STATE,FY 2019-2021
TWO-YEAR STUDENT SHAREALABAMAALASKA
ARIZONA
ARKANSASCALIFORNIACOLORADOCONNECTICUT
DELAWARE
FLORIDAGEORGIAHAWAIIIDAHOILLINOISINDIANAIOWAKANSASKENTUCKYLOUISIANA
MAINE
MARYLANDMASSACHUSETTSMICHIGANMINNESOTAMISSISSIPPIMISSOURIMONTANANEBRASKA
NEVADANEW HAMPSHIRENEW JERSEYNEW MEXICONEW YORKNORTH CAROLINANORTH DAKOTAOHIO
OKLAHOMA
OREGONPENNSYLVANIARHODE ISLAND
SOUTH CAROLINA
SOUTH DAKOTATENNESSEE
TEXAS
UTAH
VERMONTVIRGINIAWASHINGTONWEST VIRGINIA
WISCONSINWYOMING
U.S.
D.C.

2019

2020

2021

INDEX
TO U.S.

44.9%
N/A
17.8%
37.5%
4.0%
41.7%
38.7%
39.0%
36.5%
30.9%
19.2%
38.9%
30.4%
38.3%
55.0%
25.3%
43.6%
52.1%
28.4%
33.6%
32.2%
39.4%
43.4%
42.8%
30.4%
24.0%
20.3%
22.7%
52.8%
42.8%
15.8%
32.0%
18.8%
34.2%
33.5%
41.6%
32.6%
45.3%
48.5%
34.3%
40.6%
17.3%
22.5%
24.2%
69.4%
45.1%
27.1%
37.3%
19.8%
13.6%
25.3%
N/A

40.9%
N/A
17.0%
38.5%
3.1%
38.6%
38.2%
36.9%
35.3%
31.4%
18.5%
36.2%
26.3%
37.7%
50.9%
25.3%
41.7%
51.3%
28.2%
31.7%
32.0%
38.2%
41.0%
42.1%
28.2%
22.3%
18.6%
23.0%
46.3%
39.3%
14.7%
32.6%
18.3%
32.9%
32.6%
38.9%
24.1%
43.4%
51.6%
29.3%
38.6%
17.6%
21.8%
22.7%
67.9%
41.1%
23.2%
32.9%
16.8%
15.2%
24.0%
N/A

42.0%
N/A
17.9%
35.9%
2.7%
37.6%
33.9%
33.5%
33.6%
31.4%
16.8%
33.9%
26.1%
36.8%
49.3%
24.0%
41.0%
52.1%
25.1%
30.7%
27.6%
34.7%
33.2%
36.1%
25.7%
19.0%
17.3%
26.0%
42.0%
39.7%
12.0%
31.6%
16.8%
33.4%
30.7%
40.4%
23.2%
40.1%
45.5%
31.5%
39.6%
17.0%
18.3%
23.0%
52.3%
40.9%
18.3%
30.1%
15.8%
13.3%
21.8%
N/A

1.92
N/A
0.82
1.65
0.12
1.72
1.55
1.53
1.54
1.44
0.77
1.55
1.20
1.69
2.26
1.10
1.88
2.39
1.15
1.41
1.27
1.59
1.52
1.65
1.18
0.87
0.79
1.19
1.92
1.82
0.55
1.45
0.77
1.53
1.41
1.85
1.06
1.84
2.08
1.44
1.81
0.78
0.84
1.06
2.40
1.87
0.84
1.38
0.72
0.61
1.00
N/A

FOUR-YEAR STUDENT SHARECHANGESINCE 2020

CHANGESINCE 2019

2019

2020

2021

INDEX
TO U.S.

CHANGESINCE 2020

CHANGESINCE 2019

1.1
N/A
0.9
-2.6
-0.5
-1.1
-4.2
-3.5
-1.7
-0.1
-1.7
-2.3
-0.1
-0.9
-1.6
-1.3
-0.6
0.8
-3.1
-1.0
-4.4
-3.5
-7.8
-6.0
-2.5
-3.3
-1.2
2.9
-4.3
0.4
-2.7
-1.0
-1.5
0.5
-1.9
1.5
-0.9
-3.3
-6.2
2.1
1.0
-0.7
-3.5
0.4
-15.6
-0.3
-5.0
-2.8
-1.1
-1.8
-2.1
N/A

-3.0
N/A
0.1
-1.6
-1.3
-4.1
-4.8
-5.5
-2.9
0.5
-2.4
-4.9
-4.2
-1.5
-5.7
-1.3
-2.6
-0.1
-3.3
-2.9
-4.6
-4.7
-10.1
-6.6
-4.7
-4.9
-2.9
3.3
-10.8
-3.1
-3.8
-0.5
-2.0
-0.8
-2.8
-1.2
-9.5
-5.2
-3.0
-2.8
-1.0
-0.4
-4.2
-1.2
-17.1
-4.3
-8.9
-7.2
-4.0
-0.3
-3.4
N/A

75.0%
23.2%
81.5%
53.7%
41.8%
77.1%
58.4%
81.7%
18.4%
36.8%
32.2%
55.9%
36.4%
65.8%
68.8%
63.0%
60.4%
49.0%
52.4%
55.2%
43.9%
74.4%
61.1%
61.5%
55.5%
58.4%
49.5%
25.8%
84.0%
49.2%
28.0%
33.7%
39.5%
58.2%
65.4%
61.9%
71.7%
73.7%
64.4%
77.5%
64.2%
51.3%
51.9%
48.1%
89.4%
64.6%
51.4%
68.2%
62.1%
20.2%
53.8%
24.6%

73.5%
23.5%
80.1%
60.4%
40.2%
75.8%
59.0%
80.8%
16.2%
36.1%
32.3%
52.7%
35.0%
66.7%
68.0%
61.4%
60.4%
48.4%
51.7%
52.9%
43.3%
74.8%
60.3%
60.3%
52.2%
56.3%
49.2%
25.5%
81.7%
47.1%
26.4%
33.4%
38.8%
57.8%
66.6%
62.8%
71.4%
73.0%
65.9%
73.8%
60.3%
49.2%
53.4%
46.8%
85.5%
60.0%
51.1%
64.8%
62.4%
17.5%
53.0%
17.5%

74.3%
22.7%
79.0%
54.6%
38.2%
73.9%
52.2%
77.7%
15.4%
36.2%
31.6%
53.4%
33.2%
68.4%
67.7%
57.6%
58.7%
49.5%
50.0%
52.7%
40.0%
73.6%
57.5%
58.1%
50.3%
51.3%
48.2%
30.1%
75.5%
50.8%
24.5%
32.0%
38.4%
60.1%
62.2%
63.2%
69.0%
71.7%
65.0%
68.5%
60.5%
47.7%
49.7%
44.9%
75.4%
61.1%
47.2%
63.1%
60.0%
9.9%
51.6%
14.6%

1.44
0.44
1.53
1.06
0.74
1.43
1.01
1.51
0.30
0.70
0.61
1.03
0.64
1.33
1.31
1.12
1.14
0.96
0.97
1.02
0.78
1.43
1.11
1.13
0.97
1.00
0.94
0.58
1.46
0.99
0.48
0.62
0.74
1.16
1.21
1.23
1.34
1.39
1.26
1.33
1.17
0.92
0.96
0.87
1.46
1.18
0.91
1.22
1.16
0.19
1.00
0.28

0.8
-0.8
-1.1
-5.8
-2.0
-1.9
-6.8
-3.1
-0.8
0.1
-0.7
0.7
-1.8
1.6
-0.4
-3.8
-1.6
1.1
-1.7
-0.3
-3.3
-1.2
-2.8
-2.3
-1.9
-4.9
-0.9
4.5
-6.2
3.8
-1.8
-1.4
-0.4
2.3
-4.4
0.4
-2.4
-1.2
-0.9
-5.3
0.2
-1.5
-3.7
-1.9
-10.1
1.1
-3.9
-1.7
-2.4
-7.6
-1.4
-3.0

-0.7
-0.5
-2.5
0.9
-3.6
-3.2
-6.2
-4.0
-3.0
-0.6
-0.6
-2.6
-3.2
2.6
-1.1
-5.4
-1.6
0.5
-2.5
-2.5
-3.9
-0.8
-3.6
-3.4
-5.2
-7.1
-1.3
4.3
-8.5
1.6
-3.5
-1.7
-1.1
1.9
-3.2
1.3
-2.7
-2.0
0.5
-9.1
-3.7
-3.6
-2.2
-3.1
-14.1
-3.5
-4.3
-5.1
-2.1
-10.3
-2.2
-10.0

NOTES:
1. The student share is a measure of the proportion of total education revenue at public institutions coming from net tuition revenue.
Net tuition revenue used for capital debt service is included in net tuition revenue, but excluded from total education revenue incalculating the above figures. Total education revenue includes federal stimulus funding.
2. Year change columns show percentage point increases or decreases, not percent change.
3. The U.S. calculation does not include the District of Columbia. There are no two-year public institutions in Alaska or the District ofColumbia.
4. Sector-level data are recently required components of the SHEF data collection and are not currently available for years prior to 2019.
5. Sector is determined at the institution level using the Carnegie Basic Classification (carnegieclassifications.acenet.edu).
Baccalaureate/Associate's Colleges and "less-than-two-year" degree-granting institutions not assigned a Carnegie classification are
considered two-year institutions.
6. Fiscal years 2020 and 2021 include estimated net tuition revenue for New Jersey and Pennsylvania. Fiscal year 2021 includes
estimated two-year net tuition revenue for Illinois, Massachusetts, and Michigan.
SOURCE: State Higher Education Executive Officers Association

SHEEO: STATE HIGHER EDUCATION FINANCE: FY 2021

74

IMPLICATIONSFiscal year 2021 defied several long-term trends in higher
education finance. In the past, the year following an
economic recession meant steep cuts in state funding, sharp
growth in student enrollment, and growth in tuition revenue
as public institutions increased tuition rates and worked to
attract out-of-state and international students to make up
for anticipated lost revenue from the state. Instead, stateand local education appropriations per student increased
for the ninth straight year in 2021 despite a short economic
recession in fiscal year 2020, signifying states’ continued
commitment to prioritize higher education. Much of thisincrease can be attributed to generous federal stimulus andrelief funding, which supported total state revenues, reducing budget strain while also directly
supporting higher education during the COVID-19 pandemic. While these federal stimulus andrelief funds are helpful, they cannot be a replacement for long-term state investments as stimulus
funds are time limited and often restricted in their use.
The COVID-19 pandemic counteracted the usual counter-cyclical enrollment trend where
enrollment increases during and immediately following economic recessions. Instead, 2021 had
the largest single-year decline in public higher education enrollment on record. Additionally,
for the third straight year, net tuition and fee revenue did not increase enough to keep up with
inflation. The decline in net tuition revenue from 2020 to 2021 is primarily due to low growth intuition rates, increasing state financial aid, and a change in the proportion of students paying outof-state and otherwise more expensive tuition rates. This continued decline in tuition revenue
puts greater pressure on states to not cut funding to public higher education in the coming years.
However, when federal stimulus funds run out, states will face difficult budgetary decisions, andhigher education may face cuts in some states.
The SHEF report broadly addresses the wide variation in how states fund public higher education.
States vary in their relative allocations to general operating, financial aid, and research; they varyin their reliance on local support to fund community colleges and federal stimulus funding during
the COVID-19 pandemic; and they vary in the total funding allocated to higher education ona per-student level. Public institutions in some states remain primarily publicly funded, but agrowing proportion have become primarily reliant on student tuition and fee revenue over thelast two decades. State-specific context is incredibly important when discussing higher education
finance—the trends described in this report reflect the national average, and there are almost
always outliers to every trend. Additionally, even within states, there can be wide variation in theenrollment and revenue patterns at each institution.
On the whole, public institutions face uncertainty on where their future revenues will come from.
With declining revenue from both states and students and after two years of increased costs dueto the pandemic and the switch to online learning, state support for higher education is crucial
for the continued success of public institutions. Thanks to the influx of federal stimulus funding,public systems of higher education are met with a unique opportunity to make progress toward
state attainment goals. Now is a crucial time to make long-term, sustained investments to promote
educational quality and student affordability and to reduce inequality in educational attainment.

SHEEO: STATE HIGHER EDUCATION FINANCE: FY 2021

75

STATE HIGHER EDUCATION EXECUTIVE OFFICERS
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303.541.1600 • SHEEO.org