Declining Budgetary Allocation to Higher Education in The United States: Causes and Consequences for Economic Development

Titilope Akinsanmi ,Olubunmi Olanrewaju

doi:10.7176/jesd/11-10-12

Abstract

In recent times, there has been a consistent decrease in the amount of state budgets for higher education in the United States of America. This calls for great concern as higher education must compete with several other state budget items for funding. Also, more individuals need to possess workforce credentials and college degrees for the country to remain competitive in today’s economy. In the light of the critical role of education in socio-economic development, this paper elaborates on the importance of prioritizing education and increasing state funding for higher education. The study revealed in the literature that higher education is a foundation for productivity improvement and economic growth, and that countries that invest heavily in education and skills, benefit economically and socially from that choice. As a result, the study calls on lawmakers and policy formulators to make provisions for high-quality, affordable and accessible higher education by increasing the funding to pursue college education. As the world continues to change and becomes increasingly interdependent, the United States of America cannot afford to rest on its historic record as the world’s leader in educational attainment. Keywords : Higher Education, Budget, State, Funding, Expenditure, Economics, Development DOI: 10.7176/JESD/11-10-12 Publication date: May 31 st 2020

Highlights

1.0 INTRODUCTION According to an Independent Review of Higher Education Funding and Student Finance Report (2010) titled, “Securing a Sustainable Future for Higher Education”, the expansion of higher education is often presented as an attractive government policy because of its potential impact on economic growth
3.0 CONCLUSION To this end, it is very important to underscore that higher education is a foundation for productivity improvement and economic growth
The study strongly recommends that higher education should take priority

Summary

Introduction

Review of Higher Education Funding and Student Finance Report (2010) titled, “Securing a Sustainable Future for Higher Education”, the expansion of higher education is often presented as an attractive government policy because of its potential impact on economic growth. It has been observed in the education literature that the support for higher education has been gradually declining (Kane, Orszag & Gunter, 2003). Some other studies (see Tandberg, 2009; Finney, 2014; National Association of State Budget Officers, 2018; Webber, 2018) reported that increased spending on Medicaid which accounts for the largest spending from federal funds is causing decline in expenditure for higher education

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Conclusion