State Higher Education Finance 2012
State and local government financial commitment to higher education has increased substantially over the past twenty-five years. In 1987, state and local governments combined provided $33.3 billion in direct support for general operating expenses of public and independent higher education institutions. This investment increased to $50.3 billion in 1997, $82.7 billion in 2007, and $88.8 billion by 2008 (the high point in national aggregate funding).
A recession beginning in 2008 dramatically reduced state revenue and ended the growth in state and local support achieved between 2004 and 2008.