The impact of Reaganomics on state financing of public higher education

This dissertation addresses the specific relationship of federal economic policies of the Reagan administration, known as Reaganomics, to public higher education. In conducting this study three questions are asked: what were the economic policies of the Reagan administration; what was the impact on state finances of these policies; and what was the effect on access to public higher education of this impact on state finances? To answer these questions this dissertation studies the federal economic policies of the Reagan administration known as Reaganomics and their impact on state financing of public higher education during the period 1981-1992. This study makes clear that Reaganomics was developed and implemented based on the faulty assumption that taxes could be cut, the needy protected, military spending increased and the budget balanced. The impact of these economic policies on state government finances was significant in two major ways: the substantial reduction in federal aid to state governments during the initial phase of the implementation of Reaganomics; and the transferring of responsibility for certain social services from the federal government to state governments, particularly in the Medicaid program. These changes in state finances had a significant impact on state funding of public higher education and access to these institutions. The findings of this study have significant implications for the understanding of future state financing and accessibility of public higher education because they clearly establish the relationship between federal economic policies, state finances, state financing of public higher education, and access to public higher education. Because of these relationships it becomes clear that the future levels of state financing of public higher education and access to these institutions will depend greatly on the economic policies of the federal government. The dissertation concludes with an examination of the potential impact of the choices facing the Clinton administration on state financing of public higher education