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FIGURE PHE-15 Ratio of public institution salary to private institution salary, by faculty rank, 1972-1998.

SOURCE: T. J. Kane. “The Role of Federal Government in Financing Higher Education.” Presentation to National Academies’ Board on Higher Education and Workforce, March 21, 2005.

  • Design or expand federal matching programs that encourage increased state appropriations for higher education. For example, to encourage states to expand means-tested grant aid, the federal government could offer matching funds to states based on their funding of such programs.

  • Reform the Medicaid program to slow the growth of state commitments that crowd out spending on higher education.11

  • Create “Learn Grant Universities” through a federal “Learn Grant Act” as significant as the Morrill Act of 1862 and the GI Bill of 1944.

  • Enact a “Higher Education Millennium Partnership Act” that would integrate technology into the curriculum, create more flexible educational opportunities for part-time and nonresidential students, and develop new partnerships with schools, businesses, and local communities.12


Kane and Orszag, 2003.


J. J. Duderstadt and F. W. Womack. Beyond the Crossroads: The Future of the Public University in America. Baltimore, MD: Johns Hopkins University Press, 2003.

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