“We can’t allow higher education to be a luxury in this country. It’s an economic imperative that every family in America has to be able to afford.”
-President Barack Obama, February 27, 2012
Higher education is critical for socioeconomic advancement among aspiring individuals and an important driver of economic mobility in America. American companies and business require a highly skilled workforce to meet the demands of today’s increasingly global economy. Public colleges and universities educate the vast majority of the nation’s students enrolled in institutions of higher education. Over the past several decades, there has been a substantial shift in the overall funding of higher education from state assistance, in the forms of grants and subsidies, to increased tuition borne by students.
2012 Florida Board Of Governors State University System (SUS) Reports:
- The SUS has an annual economic impact of nearly $80 billion
- The SUS employs just over 58,000 faculty and staff
- translates to nearly 8% of the State’s total workforce
- 7% of Florida’s gross domestic product (GDP) is directly linked to the SUS
- Florida—with a GDP of more than $700 billion
Historical Context
The role of state governments in establishing and maintaining public colleges and universities dates back to our nation’s founding and accelerated around the time of the Civil War.
- Morrill Land-Grant Acts of 1862 and 1890 distributed federal land to states to help them establish new or fund existing colleges.
- The original 1944 G.I. Bill included a generous tuition subside and monthly living allowance for WWII veterans pursuing higher education or vocational training.
- The National Defense Education Act of 1958, in response to the launching of Sputnik, specifically aimed to make the US more competitive in science and technology by creating the first federal student loan program and comprehensive education reform at the primary and secondary levels.
The Department of the Treasury and The Department of Education released a joint report in December 2012. They report that in-state tuition costs have increased 58% between 1991 and 2013. Tuition accounts for 40% of total revenue for colleges. Because state funding has declined from almost 60% of the total revenue to below 40% today, public colleges and universities have become increasingly reliant on student tuition as a source of funding.
Public universities advance the cultural vitality of their states and regions. They serve as vibrant cultural centers, producing strong communities whose diverse interests and activities enrich their region. They provide health care through academic medical centers, and 18% of all public research universities have hospitals. They also partner with public school systems to enhance educational opportunities at the k–12 level: 86 percent of public research universities have teacher certification programs approved by the state for initial certification or licensing of teachers.
Consider the following:
- Over a lifetime, a college-educated individual earns about $1 million more than a person without a college degree (about $450,000 more in today’s dollars). This translates into increased tax revenue for the state. f The gap between the median earnings of college graduates and the median earnings of high school graduates has increased significantly over the past 30 years.
- People with higher education also experience improved health, are more involved in voluntary organizations, and give more to charity than their less-educated counterparts – all of which is good for the economy.
- Unemployment rates are lower for adults with higher levels of education all across the country. The differences vary significantly by state and are larger in states with higher overall unemployment rates.
- Growth in per capita income has been more rapid in metropolitan areas, where high proportions of adults have four-year college degrees.
- The incarceration rate of adults with some college education is about one quarter of that for those with only a high school degree.
Empirical Study
The above graphic, is an illustration of the average top five public universities.
- California: UC, SDSU, UCD, UCLA, UCSD
- Florida: UF, USF, FSU, FAU, UCF
- New York: York College, Baruch, City College, Julliard, Hunter College
- Ohio: OSU, Miami U., OU, U. of Cincinnati, Kent State
- Texas: UT, TAMU, UNT, TSU, TTU
- Virginia: UVA, VA Tech, William and Mary, GMU, VCU
Indicators include Averages for Acceptance Rate, Admissions GPA, Graduation Rate, Student to Professor Ratio, In-state tuition, Out of state tuition, Smart Rating, and Census Data for Population over 25 years old with a Bachelor’s Degree or Higher.
The Smart Rating was a model taken from US News and Forbes. The Smart Rating calculates academic excellence, admissions selectivity, career readiness, financial affordability, and expert opinion.
Florida
Florida ranked near the top of lists, including: GPA, graduate rate, in-state tuition, out of state tuition, and smart rating. Florida did not do as well in acceptance percentage, student/ professor ratio, and Population.
2015 Endowment Average:$591, 300,000
Florida has three of the top ten largest public universities in the United States. Florida only has one school (University of Florida) that makes over one billion dollars a year, whereas these other states have two or more. Overall, Florida was above average in every category, but their financial endowment hurt them overall being so low.
New York
New York ties with Florida overall,but suffers the most when looking at the public universities. New York has many prestigious school, such as: New York University, Columbia University, and St. John’s University. But all those schools are private-universities. New York ranked last in the following categories: GPA, graduate percentage, and smart rating, however its boasts the highest percentage of population over 25 with a college education.
2015 Endowment Average: $132, 138, 000
New York’s financial endowment in 2015 is four times lower than the next lowest, Florida. Again, if private universities were included this wouldn’t be the case with all their famous alumni from NYU and Columbia. Overall, New York, did poorly than expected in every category researched.
Texas
Texas, when looking at our statistics, finishes nearly in the middle of the pack in every category. Much like Florida, Texas has a high student/ professor ratio because Texas has four of the top eleven populated cities in the United States (Dallas, San Antonio, Houston, and Austin).
2015 Endowment Average: $1, 887,580,000
Texas did very well for themselves in 2015 with regards to financial endowment, and would have done better had the likes Southern Methodist University and Rice University were not private institutions. Overall, Texas, was slightly above average across the board.
California
California was the most consistent state in terms of always being towards the top of each category. California had the highest GPA, graduate percentage, and smart rating. California had the second lowest acceptance rate, but still had a high student/ professor ratio. California, also, had the second highest out of state tuition on list, which can lead me to believe that there is a high desire to attend California universities. Overall, California was the best performing state out of the six.
2015 Endowment Average: $2,023,960,000
Virginia
Virginia was a close second behind California in consistency. Virginia finished behind California in GPA and graduation rate, but were vastly ahead of the other states. Virginia did have the highest out of state tuition, in state tuition, and educated state population. This leads me to believe, like California, there is a high desire to attend Virginian universities. Overall, Virginia, falls just short of California, but performed very well.
2015 Endowment Average: $2,173,440,000
Ohio
Ohio was another middle of the pack state in the research. Ohio did not do the best in one category, except acceptance percentage. Despite accepting over 70% of applicants with a nearly equal graduation rate, the population has the lowest percentage of college graduates over 25. Overall, Ohio, are mostly average in our findings, but their financial endowment helps them from falling into below average territory.
2015 Endowment Average: $1,190,620,000
