The impact of the 2008 great recession on college and university contributions to state and regional economic growth

At the time of the September 2011 SUNY conference on Universities as Economic Drivers, the United States and most of its colleges and universities were recovering from, or accommodating to, the collapse of state budgets, endowments, and family incomes. These economic changes stemmed from the Great Recession of 2008-10, which by the start of 2012 still left most states with serious budget shortfalls. Ironically, public colleges and universities, which are generally assumed to be one of the keys to restoring the nation's economic competitiveness in the increasingly competitive global economy, were themselves suffering from worsening austerity due to, in part, significant cuts in state appropriations. This chapter examines the linkages between their heightened financial austerity and their ability to contribute to the state and regional economic recovery, concluding that states must elevate the budget priorities of higher education, but also that public colleges and universities can enhance their contributions to economic restoration in spite of the worsening austerity.