Projects

Designing State Funding Models That Sustain Rural Colleges and Universities

Summary

State appropriations provide a vital source of revenue to postsecondary institutions and students across the country. Yet, current models may disadvantage rurally situated institutions and students. For states looking to create and/or strengthen connections between postsecondary funding policy and the needs of rural institutions and students, there is very little research — and even less practical, experience-based evidence — to inform their approach. NCHEMS is working to fill this gap through literature reviews, policy analyses, financial modeling, and participatory research techniques to make recommendations for state funding policies that enhance rural student access and success while ensuring financial sustainability for rural institutions.

Check out the resources section below for our latest releases!

Topics Approach Resources

Topics

State funding models for postsecondary education.
Federal, state, and other alternative definitions for rural institutions and rural students.
State funding model redesign.

Webinar: Designing State Funding Models That Sustain Rural Colleges and Universities

Nearly half of the students pursuing bachelor’s degrees are enrolled in regional colleges and universities. These institutions receive, on average, $1,091 less in state funding per full-time equivalent student compared to non-regional institutions. Many of these institutions are in areas that meet federal, state, and other definitions of “rural,” meaning they are often located far from urban centers. Increasingly, higher education leaders at the state, system, and institutional levels are working on strategies to design state funding formulas that meaningfully address these gaps. Watch the webinar recording now!

Approach

NCHEMS will provide an analysis of possible definitions of rurality and their implications for state funding formulas through a policy brief in the summer of 2025. NCHEMS will also develop an interactive map that allows users to explore how different definitions of rurality apply to public institutions and their levels of enrollment and state and local funding. See resources for links to the policy brief and interactive map.

A working group of state teams seeking to explore rurality within their funding contexts will also be convened. If you are interested in being involved in the working group, please email Sarah Pingel at sarah.pingel@nchems.org.

Resources

Building a Rural Focus in State Higher Education Funding Approaches – Policy Brief
Rural Definitions and Public Institutions – Interactive Map
Designing State Funding Models That Sustain Rural Colleges and Universities – Webinar Recording
Rural Classifications & Definitions Guide – Guide