Public effort in support of higher education – measured as state funding per thousand dollars of personal income – has declined by thirty percent since the late 1970s. During this time period many states implemented Tax and Expenditure Limits and/or supermajority requirements for tax increases. We use a forty-eight state panel from 1961 to 2001 to evaluate the effect of these tax revolt institutions for state effort on behalf of higher education. These provisions have a statistically significant and economically large impact on the timing and magnitude of this decline in state effort. An understanding of the fiscal environment caused by these provisions is critical for the future of state-supported higher education.
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Paper provided by EconWPA in its series HEW with number
0412003.
Find related papers by JEL classification: I22 - Health, Education, and Welfare - - Education - - - Educational Finance H71 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Taxation, Subsidies, and Revenue
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