Office of Program Policy Analysis and Government Accountability
Office of Program Policy Analysis and Government Accountability

The State Has Several Options Available When Considering the Funding of Higher Education

Report 04-54, August 2004




Report Summary

This report analyzes four alternatives described below for funding state higher education that have been recently discussed by Florida policymakers or have been implemented in other states.

  • Tuition flexibility among institutions - The Legislature could grant universities flexibility to increase their tuition to provide funding to help cover enrollment growth and increased operational costs or to reduce tuition to attract more students.
  • Tuition variability within institutions - The Legislature or higher education institutions could charge variable tuition rates to better reflect the costs of different academic programs. Tuition could also be varied based on student academic choices, personal characteristics, or behavior.
  • Block tuition - The Legislature or higher education institutions could charge full-time students tuition based on a block rate for 12 to 18 credits rather than by credit hour. This could provide a financial incentive for students to take more credits each semester. However, the effect of block tuition on student behavior is uncertain.
  • Higher education vouchers - The Legislature could provide vouchers to allocate state funding directly to students rather than to institutions. Some proponents believe voucher programs would improve the efficiency of the higher education system, while some opponents believe voucher programs could create perverse incentives for institutions to attract students by making classes less challenging. However, since no state has implemented a voucher program, vouchers' effects are uncertain.


Related Reports
  1. Legislature Has Clarified Authority for Implementing Changes to Setting Higher Education Tuition and Fees
    Report 06-75 December 2006
  2. Legislature Increases FRAG Awards; Residency Determination Rules Improved
    Report 06-57 August 2006
  3. Most Bright Futures Scholars Perform Well and Remain Enrolled in College
    Report 04-23 March 2004
  4. Florida Universities' Tuition and Fees Slightly Below Peers, But All Costs Consume a Higher Percentage of Family Median Income
    Report 04-12 February 2004
Copies of this report in print or alternate accessible format may be obtained by email OPPAGA@oppaga.fl.gov, telephone (850) 488-0021, or mail 111 W. Madison St., Room 312 Tallahassee, FL 32399-1475.
Copies of this report in print or alternate accessible format may be obtained by email OPPAGA@oppaga.fl.gov, telephone (850) 488-0021, or mail 111 W. Madison St., Room 312 Tallahassee, FL 32399-1475.
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