Budget problems at public colleges and universities have been published in the press for the past year and a half.  Approximately a year or so ago, I decided to collect articles about the situation and organized them on this blog by state under the title Higher Ed’s Economic Challenges.  As the recession continues to impact the value of residential and commercial real estate (or was it the real estate that impacted the recession?), many states’ tax collections are below the level of three or four years ago. 

Unlike the federal government that is allowed to print money, most state constitutions have a balanced budget requirement.  When taxes decrease, expenditures must decrease as well.  K-12 education and Medicaid are two of the largest mandated expenditures at the state level.  Higher education has never been a mandated expenditure at the state level, so when state budgets have to be cut, higher education has usually been one of the first areas impacted.  Some states in some years increase student tuition rather than cut their higher education expense budgets.

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The Pell Grant, originally known as the Basic Education Opportunity Act, was created in 1972 to support the postsecondary educational needs of the country’s least advantaged students.  The original maximum amount for Pell Grant recipients was $452.  In 1980, the program was renamed the Pell Grant in honor of Senator Claiborne Pell and his initiatives in creating the program.  After periodic increases to meet the rising cost of college tuition, the Pell Grant remained stagnant at $4,050 for four years during the Bush Administration from 2003 until 2007.

By the time President Obama took office, the maximum Pell Grant was $4,731.  With the recent implementation of the American Recovery and Reinvestment Act of 2009, the maximum Pell Grant increased to $5,350.  Even with this increase, however, there are significant deficiencies with the Pell Grant system that must be addressed if the United States is to improve affordability and access to postsecondary educational opportunities.

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This week represents National Teacher Appreciation Week and if there was ever an appropriate time to applaud the efforts of our nation’s teachers, it is now.  Considering the well-publicized and overwhelming reality of our nation’s fiscal concerns, there can be little doubt that the nation’s leadership faces an arduous task.  The nation’s teachers, however, have arguably an even greater and more daunting task: preparing our youngest minds for the uncertain future that lies ahead of them. 

A 2006 estimate by the U.S. Census Bureau states that there are 6.8 million teachers in the United States, approximately one-third of them teaching at the elementary, middle and high school levels (the other two-thirds teach at preschool, kindergarten or college levels).  According to the Census Bureau report, teachers in Connecticut enjoyed the largest salaries in the nation, an average of $57,300, while teachers in South Dakota earned only $33,200 per year, the lowest in the nation.  The national average teacher salary in 2006 was $46,800.  Considering the importance of the job the nation’s teachers perform, such striking salary discrepancies are disappointing.  The recent budget crises in most states don’t offer much hope that teacher salaries will improve in the near future.

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