Higher Education Finance

Whether to fight or not - that is the question for the University of California

August 22, 2025

The battle between the Trump administration and the University of California over a proposed $1 billion fine is more than just a legal dispute—it's a critical moment for the future of America's public research universities.CSHE Senior Research Fellow John Aubrey Douglassdives into why this case is important and what it could mean for institutions nationwide.

CSHE Director Jesse Rothstein Provides Key Insights on University Budget

July 31, 2025

Jesse Rothstein recently shared critical insights into university financial operations during an interview with Julia Barajas from LAist, Southern California Public Radio's digital news and culture platform.

In this timely discussion, Rothstein clarified how college budgets function, underscored the vital importance of research grants, and addressed the significant financial challenges universities are currently navigating under the present administration.

Markets in Higher Education: Can We Still Learn From Economics' Founding Fathers?

Pedro Nuno Teixeira
2006

Markets or market-like mechanisms are playing an increasing role in higher education, with visible consequences both for the regulation of higher education systems as a whole, as well as for the governance mechanisms of individual institutions. This article traces the history of economists’ views on the role of education, from Adam Smith, John Stuart Mill, Alfred Marshall, and Milton Friedman, to present-day debates about the relevance of market economies to higher education policy. Recent developments in higher education policy reflect both the rising strength of market mechanisms...

The Effects of a Changing Financial Context on the University of California

Gerald R. Kissler
Ellen Switkes
2005

California’s loss of capital gains and stock options revenue during the recent economic downturn was one of the worst in the nation, and the resulting fiscal crisis led to reductions in State appropriations to the University of 15% over the past four years, while enrollments grew by 19%. This article examines the effects of this reduction in State funding and outlines the actions taken by the University of California to minimize the impact of these reductions in State funding. Despite sharp increases, student tuition and fee increases offset less than one-third of the total cut....