A new SHEEO report shows public higher education entered fiscal 2025 with enrollments still growing faster than state and local appropriations, producing the first inflation-adjusted per-student decline in more than a decade. Total state and local spending rose to $130.7 billion (2.6% higher than the prior year after inflation adjustment), while full-time equivalent enrollment increased 3.6% to 10.8 million. After adjusting for inflation, per-student public funding fell to $12,082 from $12,205 the year before. SHEEO president Rob Anderson said the drop signals “increased volatility,” despite funding levels remaining above 2008. The report also notes 24 states are still funding public higher education below pre–Great Recession levels. The immediate operational impact is likely to land on budgeting for student services, staffing, and program delivery. With enrollment growth outpacing appropriations, institutions face tighter room for raises, maintenance, and new student success initiatives, even as demand remains resilient.