Wednesday, December 7, 2016

Moody's Sees Stable Outlook for Higher Ed in 2017 - Rick Seltzer, Inside Higher Ed

Aggregate state funding is expected to grow 3 percent to 4 percent for the current fiscal year before slowing to between 1.5 percent and 2.5 percent growth in fiscal year 2018. But funding levels will vary substantially from state to state. States heavily reliant on the energy sector, like Louisiana and West Virginia, face high pressures on the amount they allocate to higher education. So do states with high pension liabilities, like Illinois, and those where policy decisions have eroded revenue growth, like Kansas. Total enrollment growth is predicted to be modest, averaging 1.5 percent for the 2017 and 2018 fiscal years. A slow improvement in retention rates will help stabilize enrollment, Moody’s predicted, noting that retention rates rose by two percentage points for classes entering between 2009 and 2014 as institutions invested in retention efforts like more intensive counseling. https://www.insidehighered.com/quicktakes/2016/12/07/moodys-sees-stable-outlook-higher-ed-2017

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