An Analysis of Higher Education Budget Allocation and Student Success

Abstract The US higher education system comprises diverse institutions, making peer benchmarking essential for accountability and resource allocation. This study examines the budget structure of Purdue University Northwest relative to IPEDS peer institutions from 2017–2022, focusing on instructional and non‐instructional expenditures, staffing, and faculty composition. Using pooled panel regression models, we analyze associations between budgetary inputs and student outcomes, including retention and graduation rates. Results indicate that instructional expenditures, student–faculty ratios, and faculty composition are significantly associated with student success. The findings offer policy‐relevant insights for budgeting design, strategic planning, and resource allocation to improve institutional effectiveness and equity.