States are facing rapidly shifting political and fiscal landscapes. After periods of major investments in higher education funding, many states are now navigating budget pressures, an evolving federal policy environment, and concerns about sustaining base funding. To support state agencies during this period of uncertainty, SHEEO is expanding its work to provide practical tools, updated research, and targeted guidance to strengthen higher education funding models.
For the next two years starting in late 2025, SHEEO will explore a variety of topics to support states looking for guidance about how to more effectively make the case for higher education funding and efficiently allocate limited state resources. Our efforts will include providing practitioner tools to develop and refine funding formulas, peer learning opportunities to help states navigate a dynamic economic and political environment, and the continued development of defining adequate funding levels. This project builds on SHEEO’s ongoing commitment to help states strengthen higher education finance systems—advancing stability even in challenging economic times.
Key Project Components
- State Higher Education Finance Network: convening national discussions to connect agencies, researchers, and organizations working in higher education finance.
- Adequacy Target Guide: working alongside experts at HCM Strategists and NCHEMS, provide practical guidance for states developing rational funding levels and equitable approaches to allocating increases or cuts. Expected Fall 2026.
- New Research Studies: publishing a multi-state cost study of instructional costs to inform future funding formulas and adequacy efforts; publishing research on funding volatility policies and practices that stabilize higher education appropriations.
- Deferred Maintenance Recommendations: convening a working group of experts to help states address long-standing capital needs.
State Higher Education Finance Network
Next Network webinar is on Tuesday, December 9, 2025, from 2-3 p.m. EST. Jesse Levin (AIR), Bruce Baker (University of Miami), and Chris Brooks (AIR) will present their latest application and results from their cost-function study across California’s community colleges. Registration link available here.
For questions about this project, contact Dustin Weeden, Associate Vice President, at dweeden@sheeo.org.