Inflation-adjusted state and local education appropriations decreased 3.3% ($396) at two-year institutions from 2023 to 2024, reaching $10,899 per full-time equivalent (FTE), according to an annual report by the State Higher Education Executive Officers Association (SHEEO).
At four-year institutions, education appropriations per FTE increased 1.5% ($197) over the same year, reaching $10,820.
Broken down, state public operating per FTE decreased $178 (2.7%) at two-year institutions and increased $217 (2.4%) at four-year institutions. Local appropriations per FTE decreased $144 (3.7%) at two-year institutions and just under $1 (1.9%) at four-year institutions.
Net tuition and fee revenue at two-year institutions averaged $2,728 per FTE in 2024, down 3.5% ($100) from 2023, according to the report. At four-year institutions, net tuition and fee revenue averaged $10,446 per FTE, down 2.8% ($306), but still almost four times the average net tuition and fee revenue in the two-year sector.
In unadjusted dollars, education appropriations over the same period increased 5.3% at two-year institutions and 7.3% at four-year institutions. Net tuition and fee revenue increased 5% at two-year institutions.
SHEEO noted important differences in the sources of two- and four-year public institution state and local funding, despite similar levels of education appropriations per FTE:
- Two-year public institutions received $6,451 per FTE in state general operating appropriations, which is 69% of the four-year general operating appropriation ($9,354).
- Local appropriations were 115 times higher at two-year institutions ($3,712) than at four-year institutions ($32 per FTE). There were two-year local appropriations in 29 states, compared to only eight for four-year institutions, the report notes.
- Total state and local support at two-year institutions was $10,899, about 84% of the amount at four-year institutions ($12,986).
State financial aid awards averaged $709 per FTE at two-year institutions, an increase of 1.2% ($9) over 2024. At four-year institutions, state financial aid increased 6.1% ($81), reaching $1,395 per FTE. Most states (33) awarded more financial aid per FTE to students attending four-year institutions.
SHEEO’s State Higher Education Finance Report includes online data dashboards on public FTE enrollment, state and local government funding, state public financial aid per FTE, net tuition revenue, total education revenue and student share.
