Public colleges and universities have a symbiotic relationship with state governments. Public higher education institutions as a part of social foundation play a significant role in creating an educated community and improving state and local economies. Local and state governments are responsible for financing these institutions, contributing to the educational sphere. However for the last years cuts in appropriations for higher education have been noticed. Investments into education are slowly decreasing, that is why the relationship between universities and the state are much spoken about to be eroding.
Let’s analyze the reason of such situation. The main factor that has declined state’s support for public colleges and universities is economic recessions. For the last 25 years those recessions were decreasing state funding; less and less money are being allotted to higher education. In addition to this the federal government is not shifting towards higher education anymore. Federal and state governments are noticed to give more and more responsibilities to municipal and county governments. And some of them are not ready to care such responsibility. The funding squeeze has also occurred because public universities have to compete more intensely for funding with other state programs such as Medicaid, K-12 schools, social services.
For the last time we can witness changes in the relationship between states and public higher education. These changes are mostly influenced by economic and political factors. As evidence, there is a fact that more and more major public research universities are transforming into quasi-private institutions. That is why lots of research universities are raising tuition and doing fundraisings.