HBCUs Spend a Significant Proportion of Their Revenue on Instructional Expenses

Earlier this year, the United Negro College Fund reported on the positive impact HBCUs have on the United States economy, despite their limited resources and historic underfunding. A new report from the Wesley Peachtree Institute, a nonprofit research and consulting organization for minority-serving institutions, has found another challenge facing HBCUs that makes their economic contributions even more impressive.

According to their findings, HBCUs spend a significant proportion of their annual revenue on instructional expenses. The U.S. Department of Education defines these expenses as costs relating to the interactions between teachers and students such as teacher salaries and benefits, teacher aides, textbooks, supplies, and purchased services.

In an examination of the 2021-2022 academic year, the report drew from data on over 2,300 bachelor degree-granting institutions enrolling over 9.4 million students. The analysis found that public HBCUs spend more on instruction relative to their annual revenue than any other institution type. Compared to other institutions, private HBCUs spend more on combined instructional and other education-related expenses, such as student services, research, and public service.

Based on their findings, the report authors stress there is an urgent need to increase investments in HBCUs by using instructional spending data when creating effective policies to address their underfunding. Going forward, they suggest future research in this area should focus on specific details that narrow down expenditures that directly impact instruction. Furthermore, they stress the importance of continuing to track this information to identify trends in instructional spending at both public and private colleges and universities.

Related Articles

Leave a Reply

Get the JBHE Weekly Bulletin

Receive our weekly email newsletter delivered to your inbox

Latest News

Thurgood Marshall College Fund Partners With Aerospace Defense Startup

In partnership with Starburst, the Thurgood Marshall College Fund has launched a new accelerator program to encourage innovators from HBCUs and MSIs to pursue entrepreneurship in technology fields related to U.S. national security.

Two Black Scholars to Lead Faculty Affairs at Universities

Walter Parrish and Adanna Johnson are taking on new roles in faculty affairs at the University of Maryland, Baltimore County and the University of the District of Columbia, respectively.

Xavier University of Louisiana Is the First HBCU to Offer a Varsity-Level Rowing Team

"Launching this team of athletes onto the competitive national stage is not just about rowing — it's about building a community, inspiring our students, and creating opportunities for growth both on and off the water," said the program's founders.

Six Black Leaders Appointed to Administrative Roles in Higher Education

Here is this week’s roundup of African Americans who have been appointed to new administrative positions at colleges and universities throughout the United States. If you have news for our appointments section, please email the information to contact@jbhe.com.

Featured Jobs