An optimistic perspective on navigating higher education funding
About four years ago, I was asked to take on government relations at my institution, which required me to register as a lobbyist. It opened my eyes to state and educational funding with a fresh perspective. So, yes, this article is riddled with a bit of satire, hope, and “who knew”?!
I’ve learned that when it comes to higher education funding, there is no magic formula. As Morgan Housel reminds us in “The Psychology of Money,” the only thing we can be certain of is there is nothing to be certain about. How much, from whom, and what will be required is often riddled with labor-intensive “but, if, then, must, may, only, and where possible,” all to be answered while delicately balancing the delivery of student-centered services.
Education teaches us that history is important. Higher education funding in the U.S. is primarily driven by state appropriations, tuition, and financial aid, all competing within the same state budget as K–12 schools and other priorities.
While these institutions are often governed separately, they rely on the same public funding streams, with K–12 typically receiving constitutional mandates and higher education remaining more discretionary.
Over time, states have shifted more costs to students while increasingly tying funding to outcomes like completion and workforce alignment. The result is a system where colleges are expected to produce more workforce-ready graduates with fewer resources, creating tension between performance expectations and institutional capacity.
And if you’ve been in higher education long enough, you know the adage “but we’ve always done it this way!” That’s why it’s important to not only understand the history but the system you’re operating within and your local community.
Some states like Florida have created strong systems that integrate the education system, keep it affordable for Florida families, and create direct workforce pipelines; hence Florida is frequently ranked the #1 higher education system in the country by U.S. News & World Report.
However, they too are not void of the increasing expenses and competing requests for funding. Without unlimited funding, they too must rob Peter to pay Paul. And this is where I’ve learned there’s opportunity for all to help.
While efficiency has become one of our greatest strengths, it also means we’re learning just how far a dollar can stretch. Seeking and obtaining higher education funding requires you to be a teacher, creative, and pleasantly persistent.
They say that students make the best teachers, and I’ve found myself resonating with this idiom. Maybe it comes from my years in marketing where I spent most of my career educating my teams, clients, and organizations about how marketing works.
As for education, I’ve found that most don’t understand the budgeting process, or their knowledge is based on how it used to be funded, or is simply inaccurate.
No, we don’t get all our funding from the state.
Programs like LAN line support largely benefited K–12, not higher education. By the way, do those still exist? And if you think we’ve won the lottery with the Education Lottery Revenue, much like most consumers, the odds are not in our favor. In reality, it’s a complex funding model with a pie chart that now looks like everyone’s on a diet.
This is where you put on your teaching hat, as you can’t know what no one’s told you. I created an annual legislative outreach and education plan that includes two seminars: Legislative Advocacy training and Balancing the Budget.
Both teach the state legislative process and how to advocate for policy or funding. As for the Balance the Budget seminar, imagine becoming a policymaker, a member of the House or Senate, tasked with balancing a budget facing a $2 billion deficit. Hypotheticals quickly feel real, the pressure builds, group dynamics emerge, and the impact of your decisions creates real tension as you try to convince fellow members to vote your way.
Attendees leave with a new perspective. Politics matter, but so does advocacy. They better understand how to support causes deserving of priority and the importance of standing behind their legislators.
Like any industry, the subsidization of education has changed over the years, with less per-student funding in many states, requiring systems to be creative and find different resources, or pass the burden on to students.
And creativity is paramount.
Colleges and universities are exploring public and private partnerships, grants, private donors, consortiums, and even leasing property or space. “Promise or Prosper” programs are also being created in partnership with counties to offer gap funding so that every student who wants to attend college can do so.
And in today’s world, even AI has entered the conversation. I jokingly asked, “Alexa, tell me how a state college can find creative funding resources.” She politely pointed me toward national organizations with extensive funding databases and then asked, “Would you like to hear more?” It was a lighthearted moment, but also a reminder. The answers are out there, but it still takes people to ask the questions, build the relationships, and do the work.
I have a phrase I like to use. It’s “not today, maybe tomorrow,” and it has served me well throughout my career. While presenting to our local delegation about our funding priorities, a member stated, “I love your institution and what you do, but I’m not sure we have that kind of funding.” I replied, “That’s okay, we will be pleasantly persistent!” That brought smiles and laughter, with many sharing they intended to borrow the philosophy.
For education, it’s a constant reminder of why we’re here. The students. It’s demonstrating the return on investment to our local economies. It’s the skilled workforce we’re delivering, helping to build the local infrastructure while proudly boasting about their alma mater.
And it’s the alumni who return and pay it forward, bridging the gap of state funding with philanthropic support.
When you add up the impact, funding higher education is definitely worth the investment.
I wish there was a magic funding formula, but alas, there is only the opportunity to keep learning, collaborating to gain efficiencies, asking for resources while teaching, and getting a whole lot of ambassadors to join you in your cause.
And no, I don’t expect people to give me their last dollar, but maybe, just maybe, they’ll advocate for higher education where it makes a difference. And if this article resonated with you and you have ideas you want to share, let’s teach each other, get creative, and be pleasantly persistent!
Jamie M. Smith, MBA, is the Public Information Officer and Associate Vice President of Government Relations at State College of Florida, Manatee-Sarasota (SCF) and a member of the Insight Into Academia Editorial Board.
