Did States Really Cut Higher Education Funding? - Minding The Campus
mindingthecampus.org
The popular narrative that states slashed higher-ed funding to force tuition hikes may be a myth — and the theory of how institutions shift cost burdens tells a more complicated story.
Cost-Shifting HypothesisPrincipal-Agent ProblemInstitutional IncentivesPublic Choice Theory
Theory Briefing
- The article challenges the widespread claim that state disinvestment directly caused rising college tuition revenue.
- The 'cost-shifting' theory holds that colleges raise tuition to compensate for lost public funding — but the article questions whether that premise holds up.
- Scrutinizing this narrative matters because it shapes policy debates over who bears responsibility for student debt and affordability.