Education

States across the country are facing a budget dilemma. Spending on higher education is now lower that it was in 2008 even though income from taxes is higher. State pensions including teacher pensions are rising rapidly and must be paid as many state constitutions along with union contracts demand. The states can take money from higher education without facing court challenges and they are doing just that. Another competitor for state funds is Medicaid where federal government matching deters any cuts from the state. There is no matching for higher education spending so cuts here will likely continue leaving tuition as the major source of new income. This combined with the availability of government student loans will cause tuition and student debt to continue to rise faster than the inflation rate. Many articles are published concerning the rapid rise in student loans, which now exceed credit card loans but few mention the reasons. It is uncomfortable for many to say that money to pay for health care for poor people is coming from cuts to higher education.