Reversing a Balance Wheel Principle and Changing a Roller Coaster Pattern

The paper discusses funding principles and policies of higher education during the recession period. The role of state appropriations for the viability of public higher education institutions is discussed. State funding affecting institutional behaviour is another issue raised. The paper discusses the possibility of expanding state funding for higher education institutions instead of cutting during economic recession. The examples of Midwestern states is discussed for this purpose. Funding higher education institutions is perceived as an important component of the process of investing in human capital.