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by ericmay 2121 days ago
Is it highly subsidized? Any reason to think that is the case?
1 comments

It is indeed highly subsidized, to the tune of billions a year. You can read the Financials online.
Do you mean subsidized in the sense of student loans backed by the government?
No. The link I was replying to was referring to State Universities. They are owned and partially financed by the government.
Sure. But what I'm wondering is what subsidies you're referring to. Are you talking about grants and loans that students get, or maybe federal grant money for research?
These organizations literally directly receive money from the government. Students grants are a factor too, but they are owned and financed in large part by the State. That's called a subsidy. They are losing money, that the taxpayer shoulders.
Ok. So I looked at the FY19 budget for one of the universities I attended and for the overall budget of $7.3 billion it's broken out like this (numbers are rounded). [1]

Tuition and fees -> $1.8 bb

Government appropriations (it looks like this is what you're referring to as direct subsidies?) -> $ 470 mm

Grants and contracts -> $862 mm

Sales & Services University -> $543 mm

Sales & Services Health System -> $3.3 bb

Sales & Services OSU Physicians -> $480 mm

Gifts and Endowment -> $380 mm

Negligible other items -> $100 mm or something.

So what subsidies are you referring to? Happy to look at a different university if you want to provide an example.

[1]https://busfin.osu.edu/sites/default/files/12_a_fy21_budget_...

-edit-

Unfortunately I can't reply, but I'm not sure why you're only considering government appropriations with respect to tuition instead of the entire budget. Seems a bit selective to me.