Second in a Series


Our Universities: Rising Tuition - Causes and Effects

Second in a series on state funding for higher education

Historically, while state contributions to the total operating budgets of universities have increased as a percentage of all spending, tuition has remained a roughly stable percentage of all operating costs. Forty years ago, about 20% of the cost of operating a public university was paid for by tuition and that still holds. As enrollments grow, why aren’t we getting greater economies of scale?

While housing went up 4x at its peak, college tuition has gone up over 10x.

Dr. Mark J. Perry, professor of economics and finance, University of Michigan, Flint.