- Surveys & Programs
- Data & Tools
- Fast Facts
- News & Events
- Publications & Products
- About Us
Finance
Overall Expenditures
Expenditures for public and private education, from preprimary through graduate school, are estimated at $560 billion for 1996-97. The expenditures of elementary and secondary schools are expected to total about $340 billion for 1996-97, while institutions of higher education will spend about $225 billion.
Viewed in another context, the total expenditures for education are expected to amount to about 7.4 percent of the gross domestic product in 1996-97. This is somewhat higher than the 1986-87 figure of 6.6 percent.
Table 21.--Total expenditures of educational institutions related to the\1\ Revised.
gross domestic product in current dollars: 1980-81 to 1996-97 --------------------------------------------------------------------------- As a Total percent expenditures of gross School in millions domestic year of dollars product --------------------------------------------------------------------------- 1980-81 $182,849 6.6 1981-82 197,801 6.3 1982-83 212,081 6.5 1983-84 228,597 6.5 1984-85 247,657 6.3 1985-86 269,485 6.4 1986-87 291,974 6.6 1987-88 313,375 6.7 1988-89 346,883 6.9 1989-90 381,525 7.0 1990-91 412,652 7.2 1991-92 432,994 7.3 1992-93 456,070 7.3 1993-94 \1\ 477,237 7.3 1994-95 \2\ 503,891 7.3 1995-96 \3\ 533,400 7.4 1996-97 \3\ 564,200 7.4 ---------------------------------------------------------------------------
\2\ Preliminary.
\3\ Estimated.
Public Elementary and Secondary School Revenues
The state share of revenues for public elementary and secondary schools grew through most of the 1980s, but in 1987-88 the trend began to reverse. Between 1986-87 and 1993-94, the local share of school funding rose while the proportion from state governments fell. In 1994-95, a greater share shifted back to the states as 46.8 percent of revenues came from state sources, 46.4 percent came from local sources, and 6.8 percent came from the federal government.
Table 22.--Percent of revenues for public elementary and secondary schools* Includes a relatively small amount from nongovernmental sources.
from various sources: 1970-71 to 1994-95 --------------------------------------------------------------------------- School year Federal State Local* --------------------------------------------------------------------------- 1970-71 8.4 39.1 52.5 1975-76 8.9 44.4 46.7 1980-81 9.2 47.4 43.4 1981-82 7.4 47.6 45.0 1982-83 7.1 47.9 45.0 1983-84 6.8 47.8 45.4 1984-85 6.6 48.9 44.4 1985-86 6.7 49.4 43.9 1986-87 6.4 49.7 43.9 1987-88 6.3 49.5 44.1 1988-89 6.2 47.8 46.0 1989-90 6.1 47.1 46.8 1990-91 6.2 47.2 46.7 1991-92 6.6 46.4 47.0 1992-93 7.0 45.8 47.2 1993-94 7.1 45.2 47.8 1994-95 6.8 46.8 46.4 ---------------------------------------------------------------------------
NOTE: Beginning in 1980-81, revenues for state education agencies are excluded. Beginning in 1988-89, new survey procedures were implemented. Details may not add to totals due to rounding.
Public Elementary and Secondary School Expenditures
The expenditure per student in public schools has risen significantly in the past 10 years, especially during the mid-1980s. In 1996-97, the estimated current expenditure per student in average daily attendance was $6,564. After adjustment for inflation, this represents an increase of 16 percent since 1986-87.
Table 23.--Current expenditure per pupil in average daily attendance:* Estimated.
1980-81 to 1996-97 --------------------------------------------------------------------------- Constant School Unadjusted dollars year dollars (1996-97) --------------------------------------------------------------------------- 1980-81 $2,502 $4,589 1981-82 2,726 4,603 1982-83 2,955 4,785 1983-84 3,173 4,954 1984-85 3,470 5,214 1985-86 3,756 5,484 1986-87 3,970 5,672 1987-88 4,240 5,816 1988-89 4,645 6,090 1989-90 4,980 6,232 1990-91 5,258 6,239 1991-92 5,421 6,233 1992-93 5,584 6,225 1993-94 5,767 6,268 1994-95* 5,988 6,327 1995-96* 6,255 6,434 1996-97* 6,564 6,564 ---------------------------------------------------------------------------
Figure 10.--Current expenditure per student in average daily attendance in public elementary and secondary schools: 1970-71 to 1996-97
Federal Aid for Public Elementary and Secondary Education
Thirty-three percent of public elementary and secondary school students in the United States received publicly funded free or reduced-price lunches in 1993-94. At public elementary schools the participation rate was 39 percent, compared with 22 percent for public secondary schools. About 14 percent of all public elementary and secondary school children received Chapter I services in 1993-94. Federally sponsored Chapter I programs are designed to assist poorly performing students in economically disadvantaged areas. Children in rural areas (14 percent) and central cities (19 percent) were more likely to receive services than those in suburban areas (10 percent).
Table 24.--Percent of public school students participating in federal* Education Consolidation and Improvement Act.
programs, by school characteristics: 1993-94 --------------------------------------------------------------------------- Percent free or Percent School reduced ECIA* characteristics price Chapter I --------------------------------------------------------------------------- Total 33.2 14.3 Community type Central city 44.9 19.4 Urban fringe/large town 24.0 10.2 Rural/small town 32.2 13.9 School size (students) Less than 150 38.6 16.7 150-299 38.1 16.7 300-499 37.0 16.3 500-749 33.5 15.5 750 or more 29.7 11.7 Minority students (percent) Less than 5 22.0 8.8 5 to 19 18.9 6.6 20 to 49 32.0 10.8 50 or more 57.3 29.0 ---------------------------------------------------------------------------
Higher Education Revenues
Private colleges are heavily dependent on tuition for revenues, receiving 42 percent from this source. In contrast, public colleges receive much of their revenue--40 percent--from state and local governments.
Table 25.--Sources of current-fund revenue for institutions of higher
education: 1994-95 --------------------------------------------------------------------------- Source Public Private --------------------------------------------------------------------------- Total 100.0 100.0 Tuition and fees 18.4 42.4 Federal government 11.1 14.4 State governments 35.9 2.1 Local governments 4.0 0.6 Private gifts, grants, and contracts 4.0 8.8 Endowment income 0.6 4.7 Sales and services 23.1 22.2 Educational activities 3.0 2.8 Auxiliary enterprises 9.5 10.0 Hospitals 10.5 9.4 Other sources 3.1 4.7 ---------------------------------------------------------------------------
Higher Education Expenditures
Trend data show some increases in the expenditures per student at institutions of higher education through the late 1980s and relatively small fluctuations thereafter. After adjustment for inflation, current-fund expenditures per student rose about 16 percent between 1980-81 and 1988-89, but increased only 7 percent between 1988-89 and 1994-95.
Table 26.--Current-fund expenditures and expenditures per full-time-* Preliminary data.
equivalent student in institutions of higher education: 1980-81 to 1994-95 --------------------------------------------------------------------------- Expenditures in Per millions student, ------------------------------ in Constant constant Unadjusted 1994-95 1994-95 Year dollars dollars dollars --------------------------------------------------------------------------- 1980-81 $ 64,053 $125,568 $14,238 1985-86 97,536 141,062 15,773 1986-87 105,764 147,142 16,233 1987-88 113,786 151,775 16,444 1988-89 123,867 156,886 16,577 1989-90 134,656 160,860 16,446 1990-91 146,088 165,803 16,608 1991-92 156,189 171,258 16,530 1992-93 165,241 176,020 16,865 1993-94 173,351 178,552 17,249 1994-95* 182,969 182,969 17,681 ---------------------------------------------------------------------------
College Costs
For the 1996-97 academic year, annual undergraduate charges for tuition, room, and board were estimated to be $6,534 at public colleges and $18,071 at private colleges. Between 1986-87 and 1996-97, charges at public colleges increased by 20 percent and charges at private colleges by 31 percent, after adjusting for inflation.
Figure 11.--Average undergraduate tuition, room, and board charges at public and private colleges: 1966-67 to 1996-97
Table 27.--Average undergraduate tuition, room, and board charges: 1986-87\1\ Due to a low response rate, data for private 2-year colleges must be interpreted with caution.
to 1996-97 --------------------------------------------------------------------------- Total tuition, room, and board Year and ------------------------------------- control of All institution institutions 4-year 2-year\1\ --------------------------------------------------------------------------- All 1986-87 $ 5,206 $ 5,964 $ 3,295 1990-91 6,562 7,602 3,930 1992-93 7,452 8,758 4,207 1994-95 8,306 9,728 4,633 1995-96 8,800 10,330 4,725 1996-97 \2\ 9,199 10,825 4,896 Public 1986-87 3,805 4,138 2,989 1990-91 4,757 5,243 3,467 1992-93 5,379 6,020 3,799 1994-95 5,965 6,670 4,137 1995-96 6,256 7,014 4,217 1996-97 \2\ 6,534 7,331 4,412 Private 1986-87 9,676 10,039 6,384 1990-91 12,910 13,237 9,302 1992-93 14,634 15,009 9,903 1994-95 16,207 16,602 11,170 1995-96 17,208 17,612 11,563 1996-97 \2\ 18,071 18,476 11,889 ---------------------------------------------------------------------------
\2\ Preliminary data.
Scholarships and Fellowships
One of the most rapidly rising expenditures at institutions of higher education during the past decade was for scholarships and fellowships. The proportion of educational and general expenditures spent on scholarships rose from 2.9 percent at public colleges in 1984-85 to 5.1 percent in 1994-95. At private colleges, the proportion expended for scholarships rose from 9.9 percent to 14.7 percent during the same time period.
On a per student basis, adjusted for inflation, expenditures for scholarships and fellowships rose by 90 percent at public universities between 1984-85 and 1994-95, compared with 11 percent for instructional expenditures. At private universities during the same period, the per student expenditures on scholarships and fellowships rose by 78 percent, and the instructional costs rose by 38 percent. Another rapidly rising expenditure in the public sector during the decade was for research, which rose by 38 percent per student at public universities and by 46 percent at other public 4-year colleges.
Table 28.--Educational and general expenditures of institutions of higher* Preliminary data.
education: 1984-85 to 1994-95
[In millions] --------------------------------------------------------------------------- Scholarships Percent Total and of Year expenditures fellowships total --------------------------------------------------------------------------- Public ----------------------------------------------------------------- 1984-85 $46,874 1,375 2.9 1986-87 54,359 1,752 3.8 1988-89 63,445 2,150 3.4 1989-90 69,164 2,386 3.5 1990-91 74,395 2,689 3.6 1991-92 78,555 3,256 4.1 1992-93 83,211 3,728 4.5 1993-94 87,139 4,223 4.8 1994-95* 92,174 4,662 5.1 Private ---------------------------------------------------------------- 1984-85 $23,188 $2,296 9.9 1986-87 28,596 3,024 10.6 1988-89 33,358 3,768 11.3 1989-90 36,421 4,269 11.7 1990-91 39,744 4,863 12.2 1991-92 43,013 5,804 13.5 1992-93 45,767 6,421 14.0 1993-94 48,885 7,015 14.4 1994-95* 51,984 7,623 14.7 ---------------------------------------------------------------------------
Aid to Higher Education
About 68 percent of all full-time undergraduate students received some form of financial aid in 1996. Students at private colleges were more likely to receive aid than students at public colleges. About 63 percent of full-time undergraduates at public colleges received aid compared with 80 percent at private nonprofit colleges. Students obtained aid through a variety of programs: 56 percent received some sort of federal aid, 11 percent participated in work-study programs, and 11 percent received aid through other types of programs. About 32 percent received aid through private sources. Private colleges provided aid from their own sources to over half of their full-time undergraduates. For all full-time undergraduates, the average student aid package from all sources totaled $6,306 in 1995-96.
Table 29.--Percent of full-time undergraduate and graduate studentsNOTE: Data include students in all types of postsecondary institutions.
receiving financial aid, by type and source: 1995-96 --------------------------------------------------------------------------- Aid from Selected student all characteristics sources Grants Loans --------------------------------------------------------------------------- All undergraduates 57.9 48.1 33.6 Public 51.9 42.3 26.9 4-year doctoral 53.7 41.9 33.0 Other 4-year 56.4 45.5 33.7 2-year 45.9 40.6 12.7 Less than 2-year 35.0 29.9 3.0 Private, nonprofit 69.5 62.1 46.5 4-year doctoral 62.7 55.2 41.6 Other 4-year 75.5 68.7 51.7 2-year 73.9 61.3 41.1 All graduate students 76.1 5.2 48.7 Master's degree 72.6 4.3 43.1 Public 74.7 4.8 39.5 Private 69.4 3.6 48.6 Doctor's degree 82.9 15.8 25.2 Public 85.9 13.7 26.7 Private 77.5 19.6 22.6 First professional 83.2 1.4 74.4 Public 85.7 2.0 79.0 Private 81.0 0.9 70.6 ---------------------------------------------------------------------------
Federal Funding
Federal on-budget support for education showed sizable growth between fiscal years 1965 and 1995, after adjustment for inflation. (On-budget support excludes education funds that are generated by federal subsidies, such as Guaranteed Student Loans.) Particularly large increases occurred between 1965 and 1975. After a period of relative stability between 1975 and 1980, federal funding for education declined approximately 16 percent between 1980 and 1985 after adjustment for inflation. From 1987 to 1997, federal funding for education increased by 30 percent.
Figure 12.--Federal on-budget funds for education, by level: 1965 to 1997 (In constant 1997 dollars)
Table 30.--Federal funds for education: Fiscal years 1965 to 1997
[In millions of dollars] --------------------------------------------------------------------------- Total on-budget support ------------------------- Constant Unadjusted 1997 Fiscal year dollars dollars --------------------------------------------------------------------------- 1965 $ 5,331.0 $27,009.4 1970 12,526.5 51,116.3 1975 23,288.1 67,013.5 1980 34,493.5 66,882.7 1985 39,027.9 56,246.2 1986 39,962.9 56,012.6 1988 43,454.4 57,371.4 1990 51,624.3 62,922.9 1991 57,595.7 67,029.6 1992 60,479.8 68,239.4 1993 67,740.6 74,553.0 1994 68,250.9 73,396.4 1995 71,636.3 73,223.1 1996 70,743.4 72,622.9 1997 \1\ 73,070.4 73,070.4 ---------------------------------------------------------------------------
