State aid for higher education in fiscal year 2024 amounted to $126.5 billion, an increase of 10.2% from the fiscal year 2023 level of $114.7 billion. These numbers come from the recently released Grapevine Report, a study conducted by the Society of State Higher Education Executive Officers (SHEEO).
State funding for higher education has increased 36.5% over the past five years, marking the third time this support has exceeded $100 billion at FY24 levels. This funding reflects a combination of revenue from tax appropriations, nontax support, unappropriated support, and state-funded contributions.
Adding $801.3 million in federal stimulus funds, total state funding for higher education in fiscal year 2024 is $127.3 billion. Since 2020, states have spent just under $10 billion in federal stimulus for higher education.
Grapevine's data reflects initial allocations reported by states from October 2023 to early January 2024. These are an early look at the state's fiscal position and are subject to change when revised later this year. It also does not take into account inflation, which is expected to rise 2.8% in fiscal 2024, the report said.
where the money goes
Grapevine's report shows how state funds are distributed among agencies, state financial aid, research, and other uses. The initial allocation to each area is as follows:
- $27.3 billion (21.6% of state support) for two years of public agency operations.
- $59.8 billion (47.3%) for public sector operations over four years.
- $16.4 billion in state financial aid for all students, including those attending private educational institutions (13.0%).
- $16.8 billion (13.3%) for research, agricultural expansion, hospital expansion, and medical schools.
- $6.1 billion will be used for other purposes, including government agency funding, private agency operations, and noncredit spending (4.8%).
State funding
State support from federal stimulus funds increased in 41 states. From 2023 to 2024, 20 states reported total higher education funding increased by more than 10%. Ten states saw a total increase of 15% or more: Florida, Massachusetts, Minnesota, Nevada, New Mexico, North Dakota, Oklahoma, South Carolina, Texas, and Utah. Texas led the way with a 46.8% increase, but that was skewed by a one-time $3 billion in new endowments for public universities, an increase that also accounted for a significant portion of the national gain.
In addition to Washington, D.C., nine other states reported declines in total approval ratings in FY24: Alabama, Arizona, Connecticut, Georgia, Hawaii, Kentucky, Nebraska, Pennsylvania, and Vermont. Alabama had the largest year-over-year decline of 26%.
Adjusting for population, the states with the highest per capita higher education spending in fiscal year 2023 were Wyoming ($682), New Mexico ($613), Hawaii ($612), and North Dakota ($600). ), California ($556).
The states with the lowest per capita funding were New Hampshire ($125), Arizona ($183), Vermont ($200), Missouri ($207), and Rhode Island ($230). Ta. Washington DC offered him $181 per person.
The national average in 2014 was $378 per person.
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