From 1969–70 to 2000–01, government appropriations per student for public institutions increased 3 percent in constant dollars. During the same period, tuition and fees per student increased 99 percent.

In 2000–01, public 2- and 4-year degree-granting institutions raised $138 billion in total education and general revenue. Of this sum, $64 billion came from federal, state, and local government appropriations for public degree-granting institutions, $32 billion came from tuition and fees, and $42 billion came from such revenue as private gifts, private and government contracts, and endowment income. This indicator examines this public support for public postsecondary institutions in two ways: by the level of public investment per student—as measured by the sum of federal, state, and local government appropriations per student—and by the governmental effort in the aggregate—as measured by government appropriations as a percentage of gross domestic product (GDP). (see NCES 2005–094, indicator 39 and supplemental note 9 for more information about these measures.)

Government appropriations per student for public institutions increased 3 percent from 1969–70 to 2000–01 (from $5,227 to $5,409 in constant dollars) (see table 40-1). During this same period, the revenues per student of public institutions from sources other than government appropriations increased substantially more than did government appropriations per student. Tuition and fees per student increased from $1,364 to $2,716 (by 99 percent), and other sources of education and general revenues per student increased from $2,204 to $3,571 (by 62 percent). As a result, education and general revenue per student increased by 33 percent during the 31-year period. The share of total education and general revenue from government appropriations declined from 59 to 46 percent, while the share from tuition and fees increased from 16 to 23 percent. The share of total revenue from other education and general revenues increased from 25 to 31 percent.

Governmental appropriations for postsecondary education increased from .66 percent of GDP in 1969–70 to .79 percent in 1975–76 and then decreased to .60 percent in 1999–2000. Between 1999–2000 and 2000–01, the index increased to .64, or back to nearly the level it was in 1969–70 (see table 40-2).

For comparisons of expenditures for postsecondary education in the United States with those of other countries, see NCES 2004–077, indicator 36.