The Latest from HCM’s Newest State Finance Series: The Balanced Framework Approach to Adequacy and Equity in State Higher Education Finance
New Issue Brief!
Building on our Balanced Framework for state higher education funding, we are pleased to release the latest issue brief focused on balancing two fundamental objectives in state higher education finance policy: adequacy and equity.
Every state funding system must address two practical questions:
What resources does each institution need to fulfill its mission and serve students effectively?
When resources are limited, how can states distribute funding in ways that provide all institutions and students with a fair opportunity to succeed?
The first is a question of adequacy; the second a question of equity. Operating within the three guiding principles of The Balanced Framework, this report looks at the ways in which adequacy and equity can be integrated throughout a funding formula rather than treated as competing or extraneous priorities.
Through state examples including spotlights on New Jersey, Ohio, Illinois, and Texas, and policy considerations, this publication offers a research-informed, data-driven methodology for alining state investments with institutional needs and advancing student outcomes. It is intended to serve as a practical tool to policymakers and higher education leaders with actionable insights for designing funding systems that fit their state’s unique contexts and goals while supporting both institutional effectiveness and student success.
This brief is part of a larger series exploring a balanced approach for states to make more strategic and equitable investments in higher education. To access all materials in The Balanced Framework series, please click here.
