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Abstract
In postsecondary education funding, states historically allocated a larger proportion of general appropriations and a lower proportion of direct student aid. However, during the last two decades, several states incrementally but substantially reduced proportions of general appropriations and increased direct student aid, including proportions of need-based, merit-based, and other aid. These incremental shifts in state funding patterns merit attention and rigorous examination due to several student, societal, and state-level implications.
Guided by a theoretical framework primarily rooted in historical institutionalism, this study set out to identify the role of ideas, interests, and institutions in the incremental shift in state funding patterns. The focus was on four-year colleges across 50 states from 2005 to 2021. The findings from the hybrid effects regression analysis partially supported this study’s ten hypotheses.
The prevalence of accountability ideas, rising neoliberalism score (ideational factors), increasing household higher education expenditures, and expanding private sector enrollment (interest-based factors) were primary factors within a state associated with decreasing proportions of general appropriations and increasing proportions of direct student aid. For these changes between the states, the number of higher education governing boards responsible for four-year colleges in a state was an influential factor.
Moreover, rising neoliberalism score (ideational factors), legislative professionalism, and the Unified Republican Government (institutional factors) were the main factors within a state associated with increasing proportions of merit-based aid. On the other hand, the rising neoliberalism score (ideational), consolidated governing board, total number of four-year college governing boards, and Unified Republican Government (institutional) were key factors associated with the decreasing proportion of need-based aid. The prevalence of accountability ideas and legislative professionalism were key factors associated with the changing proportions of three financial aid types between the states. However, the strengths and direction of these relationships varied across the funding and financial aid types studied. The rising demand for higher education demand, as measured by the population of 18- to 24-year-olds, is also positively associated with higher need-based and lower merit-based aid. Implications of this research for theory, policy, practice, and future research are discussed in the last chapter of this dissertation.
Guided by a theoretical framework primarily rooted in historical institutionalism, this study set out to identify the role of ideas, interests, and institutions in the incremental shift in state funding patterns. The focus was on four-year colleges across 50 states from 2005 to 2021. The findings from the hybrid effects regression analysis partially supported this study’s ten hypotheses.
The prevalence of accountability ideas, rising neoliberalism score (ideational factors), increasing household higher education expenditures, and expanding private sector enrollment (interest-based factors) were primary factors within a state associated with decreasing proportions of general appropriations and increasing proportions of direct student aid. For these changes between the states, the number of higher education governing boards responsible for four-year colleges in a state was an influential factor.
Moreover, rising neoliberalism score (ideational factors), legislative professionalism, and the Unified Republican Government (institutional factors) were the main factors within a state associated with increasing proportions of merit-based aid. On the other hand, the rising neoliberalism score (ideational), consolidated governing board, total number of four-year college governing boards, and Unified Republican Government (institutional) were key factors associated with the decreasing proportion of need-based aid. The prevalence of accountability ideas and legislative professionalism were key factors associated with the changing proportions of three financial aid types between the states. However, the strengths and direction of these relationships varied across the funding and financial aid types studied. The rising demand for higher education demand, as measured by the population of 18- to 24-year-olds, is also positively associated with higher need-based and lower merit-based aid. Implications of this research for theory, policy, practice, and future research are discussed in the last chapter of this dissertation.