February 20, 2011

Obama's Budget, Though Generous, Still Signals Austerity for Colleges

Obama's Budget, Though Generous, Still Signals Austerity for Colleges Obama's Budget, Though Generous, Still Signals Austerity for Higher Education 1

Tim Sloan, AFP, Getty Images

President Obama's latest budget is generous to colleges but also sets limits on how far the federal government will go in taking over the state role in financing higher education. Above, the president speaks at a Maryland elementary school with Education Secretary Arne Duncan (left), and Jacob J. Lew, director of the Office of Management and Budget.

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close Obama's Budget, Though Generous, Still Signals Austerity for Colleges Obama's Budget, Though Generous, Still Signals Austerity for Higher Education 1

Tim Sloan, AFP, Getty Images

President Obama's latest budget is generous to colleges but also sets limits on how far the federal government will go in taking over the state role in financing higher education. Above, the president speaks at a Maryland elementary school with Education Secretary Arne Duncan (left), and Jacob J. Lew, director of the Office of Management and Budget.

By Paul Basken

As state budgets tightened in recent years, colleges increasingly turned to their friends in Washington for help. Entering his first budget negotiation with a Republican-led House, President Obama is gently signaling some limits.

Over all, the fiscal 2012 budget that Mr. Obama announced last week was another testimonial to the president's admiration for education. He proposed maintaining the maximum value of a Pell Grant even as its use hit record levels, suggested expanding the

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