ABSTRACT
Governments have divergent patterns in funding higher education. This chapter discusses the role of potential employers, and the roles of government and accreditation agencies. It explains two-pronged approach, describes the different types of government funding, and makes recommendations for how the allocations might be improved. The chapter provides a summary of government funding for 2013–2014. Some argue that government should not subsidize higher education, and the reasons are summarized in this chapter. Accreditation agencies and potential employers also have a role in achieving better outcomes. State and local governments can condition a portion of their appropriation to public colleges and universities on setting and meeting goals that are consistent with their mission. As a third-party payer, governments have the right to expect better performance from institutions of higher learning. Governments have control over a substantial portion of the revenue and can use it as leverage to expect better outcomes.
