Dramatic Declines in Higher Education Appropriations: State Conditions for Budget Punctuations.

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Title: Dramatic Declines in Higher Education Appropriations: State Conditions for Budget Punctuations.
Authors: Li, Amy1 amy.li@unco.edu
Source: Research in Higher Education. Jun2017, Vol. 58 Issue 4, p395-429. 35p. 1 Diagram, 6 Charts, 4 Graphs.
Subject Terms: *State universities & colleges, *Higher education finance, Economic equilibrium, Budget cuts, Punctuated equilibrium (Social science), Finance
Abstract: Public colleges and universities depend heavily on state appropriations and legislatures must decide how much to fund higher education. This study applies punctuated equilibrium theory to characterize the distribution of annual changes in higher education appropriations and defines the threshold for a dramatic budget cut. Using data for the 50 states from years 1980 to 2009, this study investigates the relationship between such unique policy events and state characteristics using a Cox proportional hazards model. Results show that economic and political conditions are most predicative of dramatic budget cuts. High unemployment rates increase the probability of cuts while rapid increases in tax revenue and wider income inequality are protective against cuts. Unified Republican and unified Democratic governments are both more likely to cut spending compared to a divided government. Sensitivity analyses of state characteristics associated with small budget cuts demonstrates that large cuts are indeed unique events catalyzed by different conditions. [ABSTRACT FROM AUTHOR]
Copyright of Research in Higher Education is the property of Springer Nature and its content may not be copied or emailed to multiple sites without the copyright holder's express written permission. Additionally, content may not be used with any artificial intelligence tools or machine learning technologies. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)
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  Data: <searchLink fieldCode="JN" term="%22Research+in+Higher+Education%22">Research in Higher Education</searchLink>. Jun2017, Vol. 58 Issue 4, p395-429. 35p. 1 Diagram, 6 Charts, 4 Graphs.
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  Data: Public colleges and universities depend heavily on state appropriations and legislatures must decide how much to fund higher education. This study applies punctuated equilibrium theory to characterize the distribution of annual changes in higher education appropriations and defines the threshold for a dramatic budget cut. Using data for the 50 states from years 1980 to 2009, this study investigates the relationship between such unique policy events and state characteristics using a Cox proportional hazards model. Results show that economic and political conditions are most predicative of dramatic budget cuts. High unemployment rates increase the probability of cuts while rapid increases in tax revenue and wider income inequality are protective against cuts. Unified Republican and unified Democratic governments are both more likely to cut spending compared to a divided government. Sensitivity analyses of state characteristics associated with small budget cuts demonstrates that large cuts are indeed unique events catalyzed by different conditions. [ABSTRACT FROM AUTHOR]
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  Data: <i>Copyright of Research in Higher Education is the property of Springer Nature and its content may not be copied or emailed to multiple sites without the copyright holder's express written permission. Additionally, content may not be used with any artificial intelligence tools or machine learning technologies. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract.</i> (Copyright applies to all Abstracts.)
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        Value: 10.1007/s11162-016-9432-0
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      – Code: eng
        Text: English
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      – SubjectFull: State universities & colleges
        Type: general
      – SubjectFull: Higher education finance
        Type: general
      – SubjectFull: Economic equilibrium
        Type: general
      – SubjectFull: Budget cuts
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      – SubjectFull: Punctuated equilibrium (Social science)
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      – SubjectFull: Finance
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              Text: Jun2017
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