Throwing Out the 'Recession Playbook' for Higher Education: The Need for Joint Federal-State Policy in the Wake of COVID-19   [open pdf - 0B]

From the Document: "During any recession, federal and state policymakers and college leaders need to make hard choices about how to allocate resources to keep institutions running. Higher education's response at the state and institutional levels to past economic downturns has drifted into a playbook of sorts. State legislators cut higher education's budget more than other state spending categories, and in response college leaders raise tuition. While these strategies have allowed states and college systems to limp through past downturns, it's very likely that this approach will not work in the coming recession. Instead, federal intervention will be needed in the wake of COVID-19 [coronavirus disease 2019] to avoid rapidly increasing college prices and decreasing enrollment. The current recession will be different--and worse for higher education--than past recessions. States are likely to experience substantial increases in demands for both health care and public assistance, while simultaneously experiencing precipitous declines in tax revenues. Colleges and universities will likely have less demand, resulting in shortfalls in both enrollment and tuition revenue and increasing the pressure to raise tuition and cut financial aid. A joint federal-state program can provide funding that will allow students to attend college, while simultaneously stabilizing revenues for institutions of higher education. The key to this program will be focusing on one goal: college affordability for as many students and families as possible."

Third Way
Retrieved From:
Third Way: https://www.thirdway.org/
Media Type:
Help with citations