Revenues -- In tight fiscal times states are less willing to provide any state subsidies for nonresidents. Some states now view nonresidents as a potential revenue source². States expecting significant increases in enrollment demand, however, are increasingly concerned about controlling nonresident enrollments.

State Policies -- States that recruit significant numbers of nonresidents, or who hope to recruit nonresidents, are sensitive to the effects of changing demographics and higher education policy changes in other states. California's recent fiscal crisis led to reduced course offerings at many institutions and higher resident tuition rates. Between 1988-89 and 1992-93 out-migration from California for higher education increased from 4.6 percent to 7 percent of the state's first-time freshmen. The increase in out-migration in California between 1988-89 and 1992-93 resulted in an additional 2,300 students leaving the state in 1992-93. This has had a significant effect on demand in neighboring states. Nearly one-half of the 1993-94 entering classes at the University of Oregon and Oregon State University were from out-of-state and nearly one-quarter of these were from California.

Key Policy Questions
What s the proper balance between resident and nonresident enrollment, and how can this balance be achieved?
During tight fiscal times, should institutions actively recruit nonresidents in order to generate additional revenues?
Should institutional and/or state-funded financial aid be used to recruit nonresidents?
Should states with limited capacity encourage residents to enroll in other states that have available capacity?
How far can tuition rise before nonresidents are discouraged from attending an institution or residents are encouraged to migrate to another state?
Should states maintain special admissions and tuition policies for neighboring states?