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Should higher education pursue alternative revenue sources?

Amid declining state funding, do public universities seek alternative revenue streams to keep tuition and fees down? Is such diversification only a public university phenomenon? If both private and public schools are seeking new sources of revenue, then state appropriations may not be the impetus. Instead, institutional characteristics may have a greater influence. Do these institutions that seek out alternative revenue have a greater rate of survival? Eleonora Carr argues that institutional characteristics influence certain higher education institutions to seek alternative revenue streams and that these characteristics often strengthen the relationship between state appropriations and alternative revenue sources.