Budget

For four-year institutions in Alaska, Hawaii, and North Dakota, higher education’s share of the state budget remained unchanged from the prior year. But budget share declines occurred in Colorado (-2 percent), Montana (-.2 percent), and Oregon (-6.7 percent for the biennial budget). In Nevada, higher education’s share of the state budget increased an average 19.7 percent over the biennium. Other state developments:

• Oregon’s State Board of Higher Education created a new budget approach centered on a revenue-based student model for the 1999-2001 biennium.

• California institutions received nearly 14 percent more state resources during this fiscal year, in part due to the state assuming the costs of a 5 percent fee reduction for undergraduate students. The state budget included $899 million in new general fund support for postsecondary education.

• Community colleges in California received $90.4 million for new enrollment growth and $100 million to encourage efforts to enhance student outcomes.

• The University of Alaska received over $28 million in new capital dollars in the 1998 session and an additional $54 million in bonding for deferred maintenance projects.

• Alaska passed legislation establishing a mission statement for all state agencies to follow to promote efficiency and measured use of the state’s resources by utilizing performance-based budgeting.

• Legislative debate in California focused primarily on the $4 billion surplus and how to spend it. Increased education spending was one result, with significant new funding–$45 million–going to academic development programs designed to increase diversity in colleges and universities through better academic preparation.

• A legislative initiative in Colorado that would have allowed a state revenue surplus to be spent on education in lieu of taxpayer refunds failed in the November election.