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Question of the Month

April 2002

What percentage of Midwestern states’ total expenditures goes toward higher education?

Answer: The chart below illustrates the percentage differences between the Midwestern states, with a majority of them devoting a larger proportion of their budget expenditures to higher education than the national average. Another way of comparing spending is by examining the amount of state and local tax funds devoted to higher education on a per capita basis. In the Midwest, Nebraska spends the most per capita (fifth in the nation), while South Dakota earmarks the least (44th in the nation). According to the National Association of State Budget Officers, when compared to other budget areas, the amount that states allocate to higher education can fluctuate quite a bit from year to year, depending on economic conditions, because it is a discretionary expenditure. Recent difficult economic times have made it more problematic for higher education institutions seeking to procure state money at the levels they would like. A January 2002 report done for The Chronicle of Higher Education found that state budgets adopted for the 2001-2002 fiscal year boosted appropriations for higher education by 4.6 percent, marking the lowest increase in five years.

Higher education spending as a percent of budget

State Local governments
Illinois 7.5%
Indiana 9.2%
Iowa 26.0%
Kansas 16.6%
Michigan 6.5%
Minnesota 9.8%
Nebraska 21.6%
North Dakota 12.2%
Ohio 6.7%
South Dakota 14.6%
Wisconsin 15.4%
All States 10.8%

 

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