Tax limitation initiatives and their impact on higher education: A case study

Abstract

More and more tax limitation initiatives seem to be put forth for voters approval and several have passed which have implications for higher education. While those passed differ from each other substantially, a case study on the effects of Proposition 13, the first to pass in U.S., on California higher education has been instructive. Community colleges had to temporarily reduce some of their programs, primarily in adult and non-credit education, which have since been restored on a fee basis. Additionally, the control for community colleges has been shifted to the state. The four-year colleges and universities have also been indirectly affected as reflected by substantial increase in student fees when the state surplus was exhausted. Finally, despite seemingly devastating effects, most states which have been affected have learned to cope with decreasing or stabilized financial support.