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The FY 2020-21 education budget passed by the Alabama Legislature during the 2020 Session included an overall increase of 2.7 percent for the universities and 2.1 percent for the two-year colleges. So far, state funding for higher education for this budget has not been impacted by Covid-19. However, Alabama has an October 1 – September 30 fiscal year, so there are still three quarters of the fiscal year remaining. At this time, we do not anticipate any mid-year cuts to the FY 2020-2021 budget. Alabama is fortunate that it has two fairly healthy proration prevention/rainy day accounts that hopefully should help stave off any major cuts.

Updated 02/09/21

Delaware's state budget was approved into law on July 1, 2020. There were no changes to the higher education budget as a result of COVID-19.

Updated 07/27/20

The State University System (SUS) of Florida, comprising of 12 public universities, received a State appropriation of $3.2 billion in March 2020. Due to declining sales tax receipts as a result of the pandemic, the Governor withheld six percent of all general revenue appropriations. For the State University System this was approximately $200 million.

The CARES Act provided $288.5 million to the SUS, of which $126 million was to go directly to students to assist in covering eligible expenses. The balance of $162.6 million was for institutional expenses associated with COVID-19. Of this amount $45 million went to reimburse students for housing and meal plans associated with the Spring 2020 semester. The balance of $117.6 million has been used to cover expenses allowed under the CARES Act guidance.

CARES Act 2.0, signed in December will provide the SUS with approximately $427.6 million, of which a minimum of $126 million must go directly to students.

The Governor released his 2021-2022 budget recommendations on January 28, 2021 and included a State appropriation of $3.2 billion for the SUS, basically a flat budget when compared to 2020-2021. The Legislative session begins on March 2, 2021.

Last updated 02/09/21

Kentucky postsecondary institutions provided the Kentucky Council on Postsecondary Education with preliminary estimates of additional costs and lost revenue due to the coronavirus pandemic. Not including hospitals, the impact to the system is estimated at $101 million for 2019-20, and $200 million in 2020-21, or 12 percent and 23 percent, respectively, of the state general fund appropriations for operations. Postsecondary institutions were spared from a state budget reduction in 2019-20.

Note: Kentucky Governor’s recommended budget for 2020-21 includes a 2 percent increase for postsecondary operating, $55,000,000 in state funding for campus asset preservation projects, and provides $20 million to offset 90 percent of the anticipated pension-related cost increases expected at the institutions. The Governor also included an expansion of scholarships for associate and certificate seeking students ($16.4 million) in his recommended budget. The Legislature is expected to pass a budget for 2021-22 by late March 2021.

Updated 02/18/21

In Georgia, the FY 2021 budget went into effect July 1, 2020 with budget reductions across state government due to declines in state revenue during the pandemic. The University System of Georgia agency budget was reduced by 10.8 percent or $278.6 million for FY21 with no funding increases included in the funding formula for earned enrollment growth ($76.3 million) or for maintenance and healthcare benefits ($11.4 maintenance). The capital budget was not affected for USG institutions, with many construction projects included in the final budget. The budget for Georgia’s other public higher education agency, the Technical College System of Georgia, was also reduced by 10.8 percent ($40.2 million). Georgia’s public financial aid programs are primarily funded through lottery revenues. This revenue is not projected to decline dramatically like tax revenues. Therefore, funds for the HOPE program and other lottery-funded financial aid have not declined.

Updated 07/27/20

As a result of state revenue losses, fiscal year 2020-2021 (FY 21), higher education institutions incurred a state appropriation decrease of $122 million. By utilizing $100 million in federal CARES Act funds received by the state to help mitigate budget cuts, higher education received an overall reduction of $21.7 million. Louisiana’s specialized institutions that do not enroll students (Agriculture Centers and Biomedical Research Center), along with merit- and need-based scholarships as well as institutions with accreditation needs received increases totaling $28 million for FY 21. Fall 2020 enrollment across four-year institutions slightly increased by 2.5 percent, while enrollment across two-year institutions decreased by 10 percent compared to fall 2019 enrollment. The decrease in enrollment along with increased COVID-19 expenses and reduced auxiliary revenue has heightened institutional sensitivity around financial stability. There are no additional reductions planned for higher education for the remainder of FY 21.

Louisiana’s legislative session begins in early April and the Legislature will determine how to allocate an additional $290 million in state revenue for FY 21 and address a $600 million deficit for FY 22. Since higher education in Louisiana does not have a protected funding source, any reductions in state revenue could impact higher education institutions.

Updated 02/09/21

The Mississippi legislature completed work from the 2020 legislative session on July 1. Although revenue declined sharply in April, the state was able to close out FY 2020 without making cuts to state agencies. For FY 2021, the Legislature provided $677 million for public universities, a reduction of 4.7 percent from FY 2020 funding. The Legislature also provided $41.2 million in Coronavirus Relief Funds received by the state from the CARES Act for universities to cover expenses related to COVID-19. Including CARES funds, the total amount appropriated for universities is 2 percent above FY 2020 funding. The Legislature approved a bond bill that included $117,725,000 for capital improvements on university campuses. Student Financial Aid was level funded for FY 2021, which is below the anticipated need to fully-fund all undergraduate grant awards. Additional funds are expected to be appropriated in the 2021 session to fully-fund all grant programs in FY 2021.

Mississippi Institutions of Higher Learning reported total expected expenses of $116.8 million related to COVID-19 through December 31, 2020, assuming a full opening for the full semester. Institutional funds received under the CARES Act were applied to cover $69.1 million of expenses, including refunds of housing, meal plan and parking fees. Coronavirus Relief Funds received from the state will be applied to the remaining $47.6 million expenses as allowed under the CARES Act and Treasury guidance.

Updated 07/28/20

In April, the North Carolina legislature met to fund urgent COVID-related spending needs. During the one-week session, the legislature appropriated $45.4 million to assist students and institutions with funding needs to respond to the pandemic.

The legislature met again from May 18-June 28th for a more traditional “short session.” Because the last attempted budget was vetoed, the state is operating under the FY18-19 spending levels. Instead of passing a budget, the legislature passed a number of standalone “must pass” funding bills. The legislature funded nine UNC-related bills without any cuts to the University. Due to the loss of state revenues (originally estimated at $4.2 billion over the biennium), several recurring expenses were funded with non-recurring dollars. The end result was a 2.6 percent increase in funding.

In September, the legislature returned to the capital to spend the remaining CARES Act money. UNC received another $18 million for PPE and testing, tracing, and other health-related eligible expenses. While the University avoided cuts this year, the state’s revenue erosion is creating a structural problem where non-recurring funds are being used for recurring expenses. Future budget shortfalls could create a significant problem in future years.

Updated 10/13/20

The 2020 Oklahoma Legislature appropriated funding in Senate Bill 1922 in the amount of $770,414,742 for higher education operations in FY 21. The total FY 21 state appropriation represents a decrease of $31,655,316, or 3.95 percent, in state funding for higher education. Funding for the Oklahoma’s Promise scholarship program was appropriated in the amount of $70 million for FY 2021. State fiscal support for Oklahoma’s public higher education system was reduced more than $269.5 million, or 25.9 percent, from FY 2009 through FY21, and current state appropriation for higher education is below 2001 levels. According to the most recent State Higher Education Finance Report published by the State Higher Education Executive Officers Association (SHEEO), per-student higher education funding declined by more than 35.1 percent from 2009 to 2019, after adjusting for inflation, which is the second highest percentage decline in the nation.

Despite deep cuts in state appropriations over the last several years, the Oklahoma State Regents for Higher Education remain committed to initiatives that improve college readiness and increase degree completion in our state. Strategies developed by the State Regents’ Task Force on the Future of Higher Education focus on concurrent enrollment, expanding scholarships and financial aid opportunities, and strengthening adult degree completion efforts.

Oklahoma’s current revenue outlook for the remainder of FY 2021 and into FY 2022 is cautiously optimistic given the impact on the state’s economy from the COVID-19 pandemic. Economic indicators are moving in a more positive direction than had previously been projected due to the effective use of the CARES Act stimulus funding, rapid jobs recovery and the dissemination of the COVID-19 vaccine. State leaders are still faced with having to address structural issues within the FY 2022 budget to balance recurring expenses and filling holes where non-recurring funds have been utilized during the national healthcare emergency.

Current projections indicate that state revenue collections are sufficient to meet the FY 2021 approved budget without the need for midyear cuts, and state leaders are hopeful to start the FY 2022 fiscal year with at least a flat state-funded budget level for the State System of Higher Education. State budget decisions for the coming fiscal year will not be finalized until May 2021.

Updated 02/09/21

As of February 5, 2021, the state of South Carolina is operating under a continuing resolution to maintain state operations at FY 2019-20 levels. The General Assembly returned January 12 to begin a two-year legislative session. The House has begun budget deliberations. However, for fiscal year 2021-22, the impact to higher education is still unknown. While we won’t know how state funding will change, if at all, the latest economic indicators suggest the state will have $336.5 additional dollars in general fund revenue available in FY 2021-22 compared to FY 2020-21 due to the recent strength of the South Carolina economy, which is the primary support for state agencies, including higher education institutions. As of January 12, 2021, South Carolina recovered 85 percent of its jobs that it lost in April 2020 due to the COVID-19 pandemic. The state’s Education Lottery Account funds higher education merit- and need-based financial aid for in-state residents. According to latest projections, the Education Lottery Account has more funds available compared to this time last year, so we do not expect COVID-19 to affect funding for higher education financial aid. On the contrary, Governor McMaster proposed an additional $50 million for need-based grants in his FY 2021-22 budget proposal compared to the FY 2019-20 budget. Regarding capital projects, the General Assembly appropriates funds annually from the Capital Reserve Fund; however, in years in which the state experiences a budget deficit or reduction, those funds must be reallocated to support the state’s general fund.

Updated 02/09/21

The Tennessee Governor and General Assembly passed an initial budget in March 2020 but reconvened in June for a special session after the revenue declines brought about by the pandemic were more obvious. The budget passed in June 2020 held higher education institutions harmless from a potential impoundment of appropriations of up to 12 percent relative to FY20 appropriations—an impoundment all state agencies may incur. Nonetheless, the increase slated for FY21 in the original budget—passed in March 2020—had been removed.

In February 2021, the Governor released his proposed budget for FY22. It included an operating improvement of $36 million to fund productivity increases and $45.4 million for salary increases across universities, community colleges, and the Tennessee Colleges of Applied Technology—a total increase of $81.4 million (7.5 percent) from FY21 appropriations. The budget proposal also included $7.3 million to fund operating increases at the medical universities, $11.5 million for new and existing Governor’s Investment in Vocational Education (GIVE) sites, and $17.1 million for salary increases across all specialized (e.g., medical and agricultural extension) units. The Tennessee Student Assistance Awards will receive an improvement increase of $4.0 million.

Finally, the Governor’s proposed budget included funding for six capital outlay projects totaling over $260 million and recommends $153.3 million for capital maintenance, $50 million of which is identified as recurring funds.

Updated 02/18/21

In light of a decline in state revenues due to COVID-19, in May 2020 Governor Greg Abbott, Lt. Governor Dan Patrick, and Speaker of the House Dennis Bonnen directed state agencies and institutions of higher education to submit plans to reduce state appropriated general revenues for the current state fiscal biennium (FY20-21) by 5 percent. Health-related and two-year institutions were exempted from this requirement. For the institutions and agencies of higher education subject to the reductions, this represents an approximate $335 million reduction. The Texas Higher Education Coordinating Board was required to prepare for a reduction of $75 million including a $57 million reduction to state financial aid programs. However, the financial aid reduction was offset by federal GEER funds allocated for this purpose by the Governor and state legislative leaders. Final decisions regarding any FY20-21 budget reductions will be made by the Texas Legislature in their session convening in January 2021.

Updated 10/14/20

In March 2020, the General Assembly approved approximately $389 million in new funding for higher education for the upcoming biennium. Later in March, the Governor issued a state of emergency due to COVID. As a result, the Governor submitted amendments to the budget that un-allocated nearly all new discretionary spending approved during the 2020 session. These unallotted amounts were approved during the reconvened session. To date, these funds remain unallotted and the Governor has not implemented cuts. The General Assembly is set to convene for a special session on August 18 to receive an updated revenue forecast, discuss the unallotted funds and determine if budget cuts are needed.

Updated 07/23/20

At this time, COVID has not had a significant impact on state-level financing of higher education in West Virginia. At yearend the original $549.5 million was reduced to $537.5 million in the FY 2020 appropriation due to declines in lottery revenues and enrollment was lower in a new financial aid program than what was projected. Otherwise, the FY 2020 higher education budget remained intact throughout the fiscal year.

The FY 2021 budget of $547.2 million had an overall reduction of about $2 million. There were increases totaling about a million spread to some programs and the new financial aid program was reduced by $3 million. To date there have been no budget cuts to the higher education FY 2021 budget and none anticipated.

Updated 02/09/21