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Federal and State Funding of Higher Education

States and the federal government have long provided substantial funding for higher education, but changes in recent years have resulted in their contributions being more equal than at any time in at least the previous two decades. Historically,states have provided a far greater amount of assistance to post secondary institutions and students; 65 percent more than the federal government on average from 1987 to 2012. But this difference narrowed dramatically in recent years, particularly since the Great Recession, as state spending declined and federal investments grew sharply, largely driven by increases in the Pell Grant program, a need-based financial aid program that is the biggest component of federal higher education spending.

Spotlight

Knox County

The government of Knox County, Tennessee operates under a home rule format. The county administrator, formerly known as the County Executive, is called the County Mayor. There is also an elected County Commission. The county officials' districts do not correspond with those of the city of Knoxville, which has its own mayor and city council. Residents of the county living within Knoxville city limits vote in both city and county elections, are represented by city and county mayors, and pay city and county taxes. While the administration appears to be duplicated, services tend to be separated.

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Federal and State Funding of Higher Education