Taxes and Other Revenues.

"Rethinking the Way Americans Pay for College"

Kane, Thomas J.

Santa Monica, CA: The Milken Institute Review, Third Quarter 1999, pp. 14-23.

Every year, state and local governments contribute approximately $47 billion in operating subsidies to keep tuition low at public universities. Yet despite this contribution, the number of lower-income students attending college still remains stagnant. The author argues that federal grant programs have not proved effective in increasing access to higher education, and that state and local governments have incentives to get more involved, particularly as college enrollments swell over the next 20 years. States spend $3 billion on financial aid programs annually, and there is no evidence that the...