The Grapevine report offers a brighter outlook for public higher ed funding than it has in recent years. However, the inflation rate from fiscal 2021 to fiscal 2022 — which ends in June for most states — isn’t yet known, and it will likely eat up a substantial chunk of the increase. Inflation rates in recent months have hit levels not seen in decades.
Credit ratings agencies agree inflation poses a risk to colleges. Although the move back to in-person learning, high endowment returns and strong state budgets helped raise college revenues, inflation is undercutting some of that growth.
