USU exceeds amount of recommended state funding
A study released by the Utah Center for Higher Education on Jan. 4 reported that USU receives close to recommended levels of state funding.
Joined with the National Center For Higher Education Management System (NCHEMS), the Equity Funding Study researched the funding level per student at each Utah institution “by considering the funding mix of state appropriations and student (tuition) funding at each institution … compared to peers and the other similar institutions,” the study states.
The study proposed a “Mission-Based Funding Model,” which, according to the study, categorizes funding in two ways: shared mission for enrollment growth and distinctive missions.
“Utah State University has an established mission for teaching, research and public service,” said David Cowley, vice president of Business and Finance at USU.
The study compared Utah institutions to peer institutions based on individual missions. USU was classified as a research university.
According to the study, USU receives 56.7 percent of funding from the state through appropriated tax dollars, and the proposed funding for a research university is 55 percent.
For some institutions, such as Salt Lake Community College — a teaching university — current state funding is 50.9 percent and proposed funding is 70 percent from the state, according to the study.
“What the study is suggesting is that certain institutions are relying on more tuition than instructional funding than their peers,” Cowley said. “So if there was additional state funding, the money should go to those schools.
“For Utah State, it shows that about 55 percent is coming from the state and 45 percent is coming from tuition. USU’s share of state funding is similar to other research universities.”
If there is extra money allocated to higher education systems in Utah, it would go to institutions that are receiving less money than their peers, Cowley said.
“It’s important for students to realize that they are not paying the full price of attendance going to a state school. There is an enormous subsidy, even for students who who think they are paying the whole price,” said Steven Sharp, the executive director of Financial Aid and Student Employment. “According to this study, it’s about half the total cost that the state is funding.”
Sharp said the cost of attendance at USU is lower than the national average, so students who graduate from USU have less debt than the national average.
According to Sharp, about 75 percent of USU students receive some sort of financial aid.
“Of that 75 percent, over half of the students receive federal aid and the rest receives university aid,” Sharp said.
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