South Carolina lawmakers and university leaders are pressing public colleges to control costs as the state weighs how to fund higher education while keeping tuition affordable for in-state students.
At Clemson University, the Board of Trustees voted unanimously April 23 to require a spending control plan before its next meeting. The move followed warnings from Chief Financial Officer Rick Petillo that expense growth was outpacing revenue growth.
According to Clemson’s latest annual financial report, expenses rose about 9% between the 2023-24 and 2024-25 school years, while revenue increased 5%. In January 2025, Petillo warned that spending appeared to exceed revenue by about 3%, prompting requests to limit hiring, travel, and other nonessential expenses to save $63 million to $73 million. Clemson later balanced its budget as revenues came in higher and expenses lower than expected.
Trustee David Dukes said higher education had changed as colleges prepared for a possible “enrollment cliff” tied to a declining birth rate. Former Gov. Nikki Haley said, “Enrollment is going down across the board across the country. And real reforms have to happen.” Clemson, however, has posted modest enrollment growth, helped by students from other states, according to the state’s higher education agency.
Rep. Nathan Ballentine, who leads the House budget panel for higher education, said lawmakers should look more closely at college spending rather than simply provide money to prevent tuition increases.
The House budget proposal passed in March would require colleges to suspend at least half of programs that lose money for four straight years and would steer money toward science, technology, engineering, and math fields. The Senate removed those requirements, saying cuts based only on profitability could affect high-cost, in-demand programs such as nursing. Instead, senators required colleges to review programs and report those they cut or consolidate.
Since 2019, South Carolina has provided public colleges with state money in exchange for freezing in-state tuition and class-related fees. For the coming fiscal year, both chambers agreed on $26.3 million for “tuition mitigation” across 16 public colleges and universities, plus $6.7 million for the Medical University of South Carolina.
In all, public universities, including University of South Carolina satellite campuses, are slated to receive more than $1.5 billion in state tax dollars in the coming fiscal year. Even so, state funding averaged $10,438 per full-time student, below the national average and ahead of only Mississippi and Louisiana in the Southeast, according to the State Higher Education Executive Officers Association.