ABSTRACT
The impact of federal and state budgetary constraints on higher education affects both public and private institutions. Reduced federal funding has forced some retrenchment, especially on research universities, but the greatest impact has been on public institutions as they have had to compete for scarce state tax dollars with the demands of welfare, health care, criminal justice, and housing a burgeoning prison population. To a lesser extent, declining state support has also affected private institutions since most receive two to three percent of their budgets from their home states.
