Finance. The SHEEO Report (2017). Case Study assignment

SHEEO Report (2017)
Your Name
Subject and Section
Professor’s Name
February 14, 2020
* Introduction
College education, one of the primary contributors to the development and success of a state, is supported by the government. Despite the increasing costs associated with it, the government continues to provide aid as the benefit to the economy outweighs the costs. This is generally done through the provision of financial assistance, particularly to the public institutions. The funds are generated from different sources, such as but not limited to tax revenues, endowment funded by the states, and income from royalty and receipts from the lottery. These are used for the payment of various general expenses, assistance to the students, research funding, and other programs. These may also be used for the financing of multiple institutions, as well as the students serving them. However, in periods of economic recession, this budget has a higher reduction as compared to the others. To compensate for this, they usually impose rises in tuition fees.
* State of Interest
Maryland
In terms of the FTE of enrollments over the five years, Maryland decreased at a rate of 4.1%, which is below the 4.6% average decrease in the US.
As to the appropriations for each FTE, Maryland increased at a rate of 18.5% over five years, which is above the US average increase of 17.1%.
Based on the computation made to determine at what percentage of the sum of all revenues for the fiscal year 2017 is the net amount of tuition fees, Maryland at 50% is above the US average, which is at 46.4%.
* Discuss what this means for college students in your state.
A change in funding from the country has a massive impact on enrollment rates. A reduction in the financial aid given to the institutions means fewer students to be supported, hence a decrease in the total number of enrollees. Moreover, as the state decreases the budget allocated for higher education, institutions are forced to impose higher t...