Discussion Thread State and Federal Funding

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Liberty University *

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663

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Political Science

Date

Dec 6, 2023

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docx

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2

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The United States Federal government receives revenue primarily in the form of payroll taxes, individual income taxes, corporate income taxes, and excise taxes. The Federal government also collects funding from services like admissions to national parks and customs duties. The Federal government relies on a multitude of revenue sources that significantly surpass the budgets of individual states. States in the U.S. also depend on tax collections, including income tax, sales tax, and property tax, which contribute to their financial resources. The Federal government plays a significant role in contributing to each state's fiscal budget. According to the video "NASBO: State Budgets & the Federal Government," approximately one-third of the state's total funding comes from the Federal government (Liberty University, 2023). This funding is utilized to support various programs and services, including education, healthcare, and infrastructure (Berman, 2019) States must apply for grants in order to request additional financial resources from the federal government According to the U.S. Constitution, the primary responsibility for education at all levels lies with the states, but the federal government still plays a significant role in influencing the success of higher education institutions. The federal government's involvement in higher education has been characterized by various interventions throughout history, rather than following a linear trajectory. These interventions have aimed to promote the growth and expansion of higher education. The federal government's role has evolved to encompass direct support for students through federal financial aid programs, such as Pell Grants, as well as funding for research and development in higher education (Bastedo, Altbach, & Gumport, 2016). Additionally, there have been efforts to mitigate the costs of college by providing additional federal funding. States have been granted autonomy to oversee and administer their higher education institutions according to their own discretion. They determine the organization and governance of these institutions. A substantial amount of the state's fiscal budget goes to the education of their state. While the U.S. Constitution clearly designates the states with the responsibility to govern their higher education institutions, relations between state governments and colleges have become increasingly strained (Bastedo, Altbach, & Gumport, 2016). States wrestle with growing demands from students, economic constraints, and shifts in political leadership, all of which can lead to significant changes in the state's approach to higher education. The value of higher education to our society and the overall well-being of our nation is a fundamental and overarching concern. Leaders at both the federal and state levels must continue to innovate and develop new approaches to current policies, ensuring that students remain at the forefront of the educational process.
Bastedo, M. N., Altbach, P. G., & Gumport, P. J. (Eds.). (2016). American higher education in the twenty-first century: Social, political, and economic challenges . JHU Press. Berman, D. (2019). Local government and the states: Autonomy, politics, and policy . Routledge. Liberty University. (2023). NASBO: State Budgets & the Federal Government. https://www.nasbo.org/resources/budget-basics-videos
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