State Budget Shortfalls: Postsecondary Education Impacts

Source: Kristin Maloney, Education Commission of the States, May 2009

Prior to the passage of the ARRA, states faced budgetary shortfalls that forced cuts to postsecondary budgets. Since the passage of ARRA, state agencies and postsecondary education staff are relieved that many postsecondary budget cuts can be restored. A new ECS StateNote states that caution should be used when spending State Fiscal Stabilization Funds on programs or positions that require recurring funds. If states are not careful and thoughtful about how stabilization money is spent, they will face similar financial issues in two years.

Leave a Reply